Leadership (Abuja)

Nigeria: Turnover of Shares Drops By 43.24 Percent - Survey

Turnover of shares traded on the Nigerian Stock Exchange in November dropped by 4.19 billion shares or 43.24 per cent, the News Agency of Nigeria (NAN) reports.

A total of 5.50 billion shares worth N43.39 billion were traded in November against the 9.69 billion shares valued at N91.46 billion traded in October.

Some capital market operators attributed the drop to lower activities of institutional and foreign investors.

Alhaji Rasheed Yussuf, the immediate past President of Association of Stockbroking Houses of Nigeria, said that the drop was because investors were gradually closing their books for the end of year.

Yussuf said that the "sell pressure" now outweighed demands for equities due to investors' preparation for Christmas and New Year celebration.

Mr Leke Olufowobi, a Stockbroker, attributed the growth in October to strong financial results released by some quoted companies.

Olufowobi said some local investors, who left the capital market, returned in October due to the impressive returns of some companies.

Mr Emma Ndu, another stockbroker, said that the market needed strong liquidity to sustain the gains achieved in October.

Ndu said that the announcement of forbearance package for stock dealers and removal of value added tax and stamp duty would boost activities in the market in a couple of weeks.

Zenith Bank drove market activities during the period in value terms, accounting for 319.68 million shares worth N5.61 billion.

The All-Share Index, which opened for the month at 26,430.92, grew by 63.52 points or 0.24 per cent to close at 26,494.44 in contrast to the 1.61 per cent growth posted in October.

Similarly, the market capitalisation, which opened at N8.42 trillion, appreciated by N50 billion to close at N8.47 trillion.

The market capitalisation appreciated by N239 billion in October.

An analysis of the price gainers' chart during the period showed that Nigerian Breweries recorded the highest gain, appreciating by N19.08 to close at N140.28 per share.

It was followed by Glaxo, which gained N5.60 to close at N45.50, while Unilever rose by N5.46 to close at N45.50 per share.

On the other hand, Guinness topped the losers' table with N33.22 to close at N230.19 per share.

Nestle lost N24.89 to close at N650.11, while CAP dropped N5.08 to close at N26.94 per share. (NAN)

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