Leadership (Abuja)
19 November 2008
After attaining a record high over N81 billion gain in the market capitalisation on Monday, the stock market lost another N34 billion yesterda, to mark a halt in the recovery that commenced last two Thursday, whereby investors had garnered about N846 billion in value terms.
Particularly, the market capitalisation dropped to N8.356 trillion from the previous day's N8.90 trillion. Similarly, the all share index depreciated by 154.28 basis points to close at 37,865.16 from 38,018.44 points recorded on Monday.
Speaking on the market trend, National Coordinator of Progressive Shareholders' Association of Nigeria (PSAN), Mr. Boniface Okezie, attributed the reversal to investors' eagerness to take advantage of the market slight recovery to recoup the huge loss incurred during the long period of downturn.
He said that the market will continue to experience an up and down trend, until a period of stability is attained around February/March next year.
He explained that there would not be significant returns on equities, as was the case before the period of down turn, explaining that appreciation on the value of stocks would be driven by the fundamentals of the company involved.
Okezie stressed that the effect of the delisting of some dormant companies by the Nigerian Stock Exchange (NSE) has made similar companies that are not doing well to be responsive to regulatory rules, through the convening of annual general meeting and declaring the company's plan for the future of stakeholders, citing Afroil and Okomuoil as examples.
Meanwhile, thirty-five stocks suffered share price depreciation led by Chevron Plc which lost N13.35 to close at N253.65 per share. Another Petroleum (Marketing) major, Oando Plc followed on the losers' table, dropping by N5.65 to close at N107.42 per share. Nigeria Breweries declined N2.23 to close at N43.32, 7up Bottling Company depreciated by N2.18 to close at N43.00, while Benue Cement Company (BCC) lost N1.59 to close at N30.30 per share.
Contrarily, forty-four stocks appreciated in price led by UACN and UAC-Prop with gain of N1.20 each to close at N33.20 and N26.00 respectively. Dansugar followed adding N0.98 to close at N20.77; DanFlour appreciated N0.81 to close at N17.19, while Costain went up by N0.72 to close at N15.31 per share.
The banking sub-sector recorded on the sectoral level with traded volume of 311.7 million shares valued at N4.3 billion exchanged in 7,218 deals. The insurance sub-sector boosted by share traded in Investment and Allied Assurance closed as the second most traded sector, accounting for 252 million shares worth N325 million exchanged in 1,478 deals.
At the end of the day, investors bought 633.8 million shares worth N5.5 billion in 11,435 deals.
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