Daily Independent (Lagos)
Kingsley Ighomwenghian
3 November 2008
Lagos — The twin measurement indicators of the Nigerian Stock Exchange (NSE) suffered what analysts agree is their worse declines in recallable history last week, following heavy set backs by big capped companies especially in the petroleum products and banking sub-sectors, among others.
Most of the loss occurred between Tuesday when the NSE management announced the removal of the circuit breakers put in place to stem the market meltdown and weekend's session.
Professor Ndi Okereke-Onyiuke told stockbrokers during trading of the decision to remove the one per cent slide permissible per session, restoring it to the previous five per cent movement up or down per day, in addition to the removal of the rule that 100, 000 was needed for price movement at any time.
Equities' capitalisation fell by N1.219 trillion to close at N7.696 trillion, just as the All-Share-Index closed 5,558.24 basis points or 13.27 per cent trimmer at 36,325.86 points after 91 stocks suffered varying degrees of loses, as against previous week's 74.
This brings year-to-date decline in the index to 37.36 per cent, while available data, according to analysts at the weekend, "suggests that Nigerian equities have not lost this much in any one-week of trading."
A further breakdown of the week's activities shows that 46 stocks hit their new 52-week lows, among which were 18 banking stocks.
The week's biggest laggard was embattled Chevron Oil Nigeria, which is still locked in an industrial action with members of its branch of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN), the staff union over plans by the core investor to divest its 60 per cent stake in its downstream arm operating as Texaco without resolving all pending labour issues, barely two weeks after the junior staff called off their own industrial action. Chevron lost a huge N37.26 per share, most of which came with Friday's N18.15, in addition to previous week's 776 kobo, ahead of alcohol and malt beverages brewer- Guinness Nigeria, whose share price closed N21.33 weaker; followed by Oando's N15.77 decline. Conoil, another petroleum products marketing giant closed N10.22 leaner; ahead of Union Bank of Nigeria, which dropped 712 kobo, a week after shedding 188 kobo. The directors had last Monday submitted its audited result for the year ended March 31,
2008 showing a gross income of about N112.989 billion, representing an increase of about N23.747 billion or 27.53 per cent over previous year's N89.242 billion. Of this figure, profit before tax stood at N33.012 billion, growing by about N15.43 billion or 87.81 per cent from previous full year's N17.577 billion. Profit attributable to shareholders grew by about N12.979 billion or 93.53 per cent within the period from N13.876 billion to N26.855 billion, representing earnings per share of about N2.26, out of which the directors have recommended a dividend of 100 kobo per share just like they did in the corresponding period of 2007, in addition to a scrip issue of one new share for every six currently held by investors. Consequently, the register of members is to be closed between November 17 and 21, while the warrants will be distributed from December 3, 2008, while the annual general meeting is scheduled for Sokoto on December 3, 2008. Nigerian
Breweries fell by 627 kobo; Zenith Bank lost 597 kobo. Also on the top 10 laggards' table included First Bank, which shed 480 kobo; Lafarge WAPCO, 477 kobo, just like BOC Gases.
On the flip side, one two companies recorded gains, as against previous week's three. They include Nigerian Bag Manufacturing Company, which chalked 24 kobo; while FTN Cocoa Processor grabbed 12 kobo.
In what is seen as higher activity encouraged by the regulatory move, transaction volume improved, with stockbrokers crossing 1.088 billion units valued at N7.192 billion in 25,472 deals, an improvement by about 100.52 million units or 10.18 per cent over previous week's 987.49 million shares exchanged for N8.43 billion in 19,885 deals.
The banking sub-sector recorded 383.23 million units worth N4.27 billion crossed in 14,364 deals, with Spring Bank as most sought after recording 120.11 million units valued at N671.46 million in 338 deals, even as it reported closed on bid with over 13 million units. It was followed by PlatinumHabib Bank's 40.71 million units worth N270.84 million in 1,410 deals.
In the insurance sub-sector where 360.87 million units changed hands for N468.58 million in 1,923 deals, Investment & Allied Assurance was most sought after, accounting for 144.46 million shares exchanged for N98.22 million in 274 deals. In spite of the huge turnover volume, the stock still recorded offer in excess of 521 million units. It was followed by 101.95 million units of Universal Insurance Company traded for N115.64 million in 194 deals, while 54.36 million units of Lasaco Assurance changed hands for N94.13 million in 175 deals.
Also, stockbrokers crossed 144.53 million shares worth N391.75 million in the information, communication and telecommunications sub-sector in 242 deals, with Chams Plc accounting for the majority 142.16 million units valued at N377.368 million in 157 deals.
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