Bears Tighten Hold on Equities

Bears tightened their hold on the stock market  Thursday, dragging the Nigerian Stock Exchange (NSE) All-Share Index below  the 20,000 level for the second time within two months.

The benchmark index had hit the 19,000 level in October before positive quarter results lifted it back to the 20,000 level. However, persistent decline witnessed in the past few days returned the major market gauge to its October level.

The index fell by 0.55 per cent from 20,070.63 to close at 19,961.18, while market capitalisation went down by N34 billion from N6.316 trillion to N6.282 trillion.

The bears overran the market as 31 equities lost value compared with only six that added value. Market operators said, apart from investors going for higher returns in fixed income securities in the money market, preparation for end of year festivities and holidays is equally impacting on the market.

Stanbic IBTC Bank Plc led the price losers with N0.40 to close at N7.60 trailed by UAC of Nigeria Plc with a gain of N0.38 to close at N29.32 per share.

Oando Plc and Nigeria Breweries Plc shed N0.25 apiece, just as Vitafoam Nigeria Plc and Skye Bank Plc went down by N0.24 and N0.22 respectively.

Those stocks that escaped from the bears’ territory  into the bulls’ haven were led by NRC Nigeria Plc with a gain of N0.42. The equity closed at N8.87 per share.

Cement Company of Northern Nigeria Plc and Guaranty Trust Assurance Plc garnered N0.23 and N0.06 to be at N4.98 and N1.01 in that order.

Meanwhile, despite the downturn in the capital market,  some quoted companies would be rewarded on Sunday, November 27,  in Lagos  at the annual Performance Earnings and Returns Leadership (PEARL) Awards.

The organisers of award, PEARL Awards Nigeria, said in a statement that 72  companies had emerged as nominees for the various categories of 2011 edition of the event.

“The uniqueness of the award is that it is reserved for companies listed on the floor of the NSE and the methodology which are based on verifiable facts and figures. The awards are predicated on data sourced from financial reports of quoted companies presented at annual general meetings as well as stock trading performance of companies documented in the weekly trading reports of the NSE for the 52 weeks in each year under review and daily official lists.

Only companies listed all-year round with annual reports duly filed with the NSE are included on the ranking process,” the statement said.

Governor Babatunde Fashola  of Lagos State; Chief Executive  Officer of NSE, Mr. Oscar Onyema; President of Chartered Institute of Stockbrokers (CIS), Mr. Mike Itegboje and Chairman of BGL Plc, Dr. Kalu Idika Kalu  are among those expected to grace the award ceremony