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Equities Regain N301bn in Four Days

By on March 27, 2011

Nigerian equities sustained their positive run at the stock market for the fourth day Wednesday, recovering N301 billion in the process. The market, which witnessed an unprecedented bear run recently began  its recovery last Friday. Operators had attributed the bearish period mostly to massive sell-offs by politicians who are raising funds to finance electioneering campaigns. However, some discerning investors took advantage of the low prices of most of the equities and began to increase their stakes since last Friday.

And by the close of yesterday, equities have recovered N301 billion or 3.8 per cent in the past four days as the market capitalisation rose from N7.776 trillion last Friday to close at N8.077 trillion yesterday. Similarly, the Nigerian Stock Exchange (NSE) All-Share Index appreciated from 24,336.85 to close at 25,281.03.
While some investors were worried over the recent bear run, the Head of Media, Securities and Exchange Commission (SEC), Mr. Lanre Oloyi, had assured that investors should not lose sleep over the development.

“Prices go up and down in a market. That is constant and investors  in a capital market should  be  prepared for such fluctuations. I can tell you that the worst is over for our market and the future is very bright. Banks have started to declare improved results and declaring dividends. With efforts by the Federal Government to tackle infrastructure and power problems,    more listed companies would begin to post better results going forward. For us at SEC, protection of investors remains paramount. That is why the Commission continues to bring out new rules and enforce existing ones. The new corporate governance code that will become effective April 1, 2011 is part of efforts to ensure  that investors are well protected,” he had said.

Three banks-Zenith Bank Plc , Guaranty Trust Bank Plc and Access Bank Plc had in the previous day announced dividends for the year ended December 31, 2010. In fact, GTBank declared a dividend and scrip issue. Positive reactions to these results and others being  expected in the market contributed to the positive trading recorded yesterday. Forty-Five stocks appreciated compared with 18 stocks that depreciated. Lafarge Cement WAPCO Nigeria Plc led the price gainers with N1.85 to close at N39.03 per share. Nigerian Bottling Company Plc trailed with a gain of N1.70 to close at N78.50, while Nigerian Bottling Company Plc, Unilever Nigeria Plc and Dangote Flour Mills Plc chalked up N1.50, N0.94 and N0.70 respectively.

Conversely, Oando Plc led the price losers with N0.43 to close at N59.00 per share. AvonCrowncaps Plc trailed with a loss of N0.34, just as PZ Cussons Nigeria Plc and Costain (W.A) Plc shed N0.33 and N0.31 in that order.

Source : Thisday