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Stock market dips further as volatility increases

By on April 11, 2011

The market capitalisation of equities at the Nigerian Stock Exchange (NSE) depreciated further by 0.08 percent at the close of trading session last week, as against a decline of 0.45 percent recorded in the preceding week.

The NSE market capitalisation of the 194 First-Tier equities closed last Friday at N7.902tr after opening the week at N7.908tr, reflecting N6bn losses. Meanwhile, about N36bn was lost in the previous week.

The NSE All-Share Index in the week under review also shed 0.08 percent to close at 24,733.38 basis points as against a decline of 0.45 percent recorded in the preceding week to close at 24,752.05.

Analysts at Proshare Nigeria Limited, an investment advisory firm, said equity market turned unstable with “increased volatility due to high speculative tendency experienced.” They said, “series of indecision positions witnessed in most sectors, gave support to the unstable market breadth in the week, indicating the intense battle between the bargain and sell positions while the outlook further suggests overwhelming sell position as the week eventually closed negative.” In the mean time, market watchers have advised investors to maintain value-investing approach in the coming weeks.

Gainers and Losers

The number of gainers in the week closed at 41 stocks compared with the 26 stocks recorded in the previous week.

Transcorp Plc topped the gainers chart for the week with 19.83 percent appreciations. One the losers’ side, a total of 33 stocks recorded price decline in the week compared with the 50 stocks that declined in the previous week. Guaranty Trust Bank topped the losers chart for the week with 24.57 percent depreciation.

The total volume traded in the week closed at 3.92 billion units valued at N15.25bn compared with 3.98 billion units valued at N16.65bn recorded in the previous week. The volume transaction in the week when compared with the previous week data declined by 1.43 percent as against an increase of 242.68 percent recorded the preceding week. Weekly value also went down by 8.42 percent as against positive growth of 68.36 percent recorded in the preceding week.

The conglomerates sector emerged the most traded sector during the week in terms of volume with 2.56 billion units of shares valued at N4.09bn. The volume traded in the sector accounted for 65.30 percent of the entire market. Transcorp Plc led the market volume for the week to maintain previous position as top traded stock. The Banking sector was second most traded sector with 994.67 million units valued at N7.75bn.

Last week, some companies were marked down for dividends and bonuses. Zenith Bank was marked down for 85k dividend; Guaranty Trust Bank was marked down for 75k dividend and a one for four bonus; while Stanbic IBTC was marked down for 39k dividend.

source : 234next