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NigeriaEquities Remain Weak

By on April 12, 2011

Despite massive investment on banks shares on the trading floor of the Nigerian Stock Exchange (NSE) Monday major market indicators remained weak as investors apathy grew following ongoing general elections.

 

The market had at the close of business last Friday grew marginally raising the hope that investors may have had a change of mind on the possible outcome of the elections.

 

But the results of Monday’s trading activity reflected a different posture with traders wearing a long face after trade.

 

Some of the traders who spoke to THISDAY on the condition of anonymity complained bitterly of the way the current management of the NSE implemented the reforms recently, a situation they said was also responsible for investors’ apathy.

 

Analysis of figures released by the NSE at the close of business yesterday showed that the banking sector with the massive sales recorded yesterday remained the most active in terms of the number of shares sold.

 

It led the equities sector with a total of 132.7 million ordinary shares valued at N1.03 billion executed in 3,010 deals.

 

The volume of shares traded in the banking sector was largely driven by the activity in the shares of Zenith Bank Plc, First Bank of Nigeria Plc, First City Monument Bank Plc and Access Bank Plc.

 

Trading on the shares of the four banks accounted for 54 million ordinary shares or 40.6 per cent of the sub-sector’s turnover.

 

The insurance sub-sector boosted by the activity in the shares of Lasaco Assurance Plc, AIICO Insurance Plc and Continental Reinsurance Plc trailed on the activity chart with a turnover of 20.7 million ordinary shares worth N14.1 million made in 175 deals.

 

However, the N1.03 billion staked on bank shares was unable to lift the twin market gauge as both the All-Share Index or ASI and the market capitalisation closed in red.

 

While the ASI dwindled by 0.058 index points or 0.23 per cent to close at 24,675.75 points, the market capitalisation, which mirrors the total amount of investment in the market declined by N19 billion or 0.24 per cent to close at N7.88 trillion.

 

Meanwhile, the price movement chart of the NSE displayed a total of 25 stocks that recorded gain as against 26 on the losers table.

 

Afribank Nigeria Plc led on the gainers table with a gain of 9 kobo to close at N1.89 per share while University Press Limited trailed with N24 kobo gain to close at N5.09 per share.

 

On the other hand, Cadbury Nigeria Plc led on the losers table with a loss of N1.03 to close at N19.97 per share while Cement Company of Northern Nigeria Plc trailed with a loss of 53 kobo to close at N10.25 per share.

source : Thisday