Daily Independent (Lagos)
Kingsley Ighomwenghian
13 October 2008
News of the bail-out package being worked by the Nigerian Stock Exchange and some banks, has so far failed to change the market's slant, with the bears still firmly in charge, after 76 companies closed in the red at the end of last week, as against just 10 on the flip side.
The All-Share-Index lost 1,331.45 basis points or 2.91 per cent to close at 44,380.96 points, while the value of the 211 listed companies fell by N279.337 billion from previous weekend's N9.729 trillion. The loss resulted from loses sustained by Chevron Oil Nigeria, Guinness Nigeria, Nigerian Breweries, Zenith Bank and Union Bank, among others. Stocks in the banking sub-sector occupied five slots or 50 per cent of the week's top decliners' table. Chevron Oil closed 397 kobo slimmer, while Guinness added 342 kobo to previous week's 116 kobo, just as Nigerian Breweries shed 271 kobo, a week after dropping 89 kobo. Part of the decline by NB followed the adjustment of its share price for an interim dividend of 100 kobo per share recommended by the directors at the end of its half year ended June 30, 2008. Zenith Bank's 173 kobo brought its two-week loss to 343 kobo, Union Bank lost 164 kobo, just a few days after the technical suspension on its
share price was lifted by the Nigerian Stock Exchange until the directors are ready to proceed with the capital raising issue for which it was earlier suspended. Also on the laggards' side for the week were BOC Gases whose share price fell by 136 kobo, First Bank shed 131 kobo, ahead of the 119 kobo slide in the share price of United Bank for Africa, a week after closing 50 kobo leaner. Dangote Sugar Refinery caved in under pressure from profit takers also as it tumbled 106 kobo down, followed by Guaranty Trust Bank with 100 kobo.
Leading the gainers' pack were building materials manufacturing giant- Lafarge WAPCO, which grabbed a weak 70 kobo, in addition to previous week's 33 kobo; just as sub-sector peer Ashaka Cement notched 68 kobo. WAPCO's gain was inspired by Friday's 145 kobo, which was enough to lift it off the laggards' side for the week, the was the opposite of Ashaka Cement, as the gains it garnered in the earlier part of the week was enough cushion against its 30 kobo slip at the weekend. Thomas Wyatt chalked 49 kobo, Prestige Assurance got a 33 kobo lift, while newly listed Multiverse Resources closed 27 kobo up at the end of its first week as a quoted company, after its three billion ordinary shares were added to the Daily Official List on Monday October 6, 2008 by way of introduction after a successful private placement memorandum. Also on the gainers' side were International Energy Insurance with a six kobo gain, Nigerian Aviation Handling Company
closed five kobo better, Associated Bus Company notched five kobo also, just as Goldlink Insurance and Daar Communications rose by two kobo respectively.
At the close of the week's trading session, transaction volume jumped to 2.03 billion, representing an increase of about 1.295 billion shares or 172.73 per cent, valued at N13.0 billion in 34,233 deals, as against the 735.046 million units stockbrokers crossed in the two trading sessions of previous week for N3.569 billion in 12,380 deals.
In the banking sub-sector where 888.80 million units changed hands for N8.61 billion in 17,042 deals, Spring Bank emerged once more as the most sought after, accounting for a bloc 559.33 million units, representing 62.93 per cent of the sub-sector volume, exchanged for N3.12 billion in 928 deals. The large volume may not also be unconnected with the acquisition bid by rival PlatinumHabib Bank, which last week got the blessing of its shareholders for the hostile takeover in spite of opposition by some stakeholders, including the Senate, which recently directed the apex regulator- Securities & Exchange Commission and the NSE to halt the deal. Sterling Bank followed with 50.31 million units worth N260.98 million in 121 deals, followed by Fidelity Bank's 40.74 million units exchanged for N291.25 million in 540 deals.
Helped by equally heavy trading in Investment & Allied Assurance, the sub-sector pooled 633.65 million units worth N753.27 million in 3,796 deals, of which IAA accounted for 447.69 million shares worth N331.29 million in 553 deals.
The information communication and telecommunications sub-sector was next with 190.29 million units worth N639.29 million in 530 deals, helped by 186.03 million units of Chams, which changed hands for N606.48 million in 332 deals.
Meanwhile, the management of Ecobank Transnational Incorporated (ETI)told stockbrokers last week that it has opened a 99.99 per cent owned subsidiary in France under the name EBI SA. France, thus becomes the 26th country to be accessed by the Ecobank group and the first outside Africa.
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