22 December 2012

Nigeria: Equity Market Plunges 1.02 Percent On Profit Taking

Lagos — The domination of speculative traders on the floor of the Nigerian Stock Exchange (NSE) this week halts the last three week gains as investors jostled for profits.

Equity market witnessed pessimistic trading throughout the week, keeping the breadth with the negative trend.

Nigerian stocks experienced sell pressure on Monday, recording loss by 0.70 per cent to open the week on negative note as profit taking dominated the terrain.

Similar trend was observed on Tuesday as market breadth slipped to record another loss by 0.20 per cent on the back of continued profiteering.

On Wednesday, sell traders increased their activities despite improved breadth, plunging market by 0.32 per cent.

However, Thursday witnessed increased speculative trading on improved breadth while market retraced with 0.58 per cent gain.

Market lost its ground on Friday as the bear's reclaimed dominance of the bourse with 0.39 per cent.

During the week under review, the NSE All-Share Index dropped by 1.02 per cent, to close at 27,402.06. Also, market capitalization of the listed equities depreciated by 1.03 per cent to close at N8.755 trillion.

Likewise, the Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Insurance, Bloomberg NSE Oil/Gas and NSE Lotus II Indices depreciated by 1.40 per cent, 5.83 per cent, 0.73 per cent, 2.91 per cent and 0.39 per cent respectively. However, the Bloomberg NSE Banking index appreciated by 3.29 per cent.

A review of the equity price movements indicated that 40 equities gained while 35 equities recorded price declines and prices of 120 equities remained constant. When compared with the preceding week, 44 equities gained while 25 equities recorded price declines and prices of 129 equities remained constant.

Meanwhile, a turnover of 1.293 billion shares worth N13.725 billion in 20,499 deals was recorded this week in contrast to a total of 1.929 billion shares valued at N14.640 billion that exchanged hands last week in 22,650 deals.

The Financial Services sector (measured by turnover volume) accounted for 952.745 million shares valued at N7.857 billion traded in 11,975 deals. Consumer Goods sector (measured by turnover volume) followed in the activity chart with for 81.616 million shares valued at N4.377 billion traded in 4,295 deals. The Industrial Goods sector (measured by turnover volume) was third with 72.867 million shares valued at N265.817 million traded in 1,057 deals. The top three sectors accounted for 1.107 billion shares valued at N12.499 billion traded in 17,327 deals, thus accounting for 85.63 per cent, 91.07 per cent and 84.53 per cent of the volume, value and number of deals respectively.

Similarly, the Banking subsector of the Financial Services sector was the most active during the week (measured by turnover volume); with 695.408 million shares worth N6.525 billion traded in 8,731 deals. Volume in the Banking subsector was largely driven by activity in the shares of Zenith Bank Plc, UBA Plc and Guaranty Trust Bank Plc. Trading in the shares of the three banks accounted for 343.272 million shares, representing 49.36 per cent, 36.03 per cent and 2.50 per cent of the turnover recorded by the subsector, sector and total turnover for the week, respectively.

Also traded during the week were 638 units of NewGold Exchange Traded Funds (ETFs) valued at N1.636 million exchanged hands in 4 deals in contrast to a total of 880 units valued at N2.300 million transacted last week in 6 deals.

Okomu Oil Palm Plc led the gainers chart with N3.00 kobo or 8.57 per cent, while Guaranty Trust Bank Plc follow with N1.85 kobo or 8.60 per cent. Other gainers are International Breweries Plc with N1.70 kobo or 11.97 per cent, Presco Plc with N1.09 kobo or 7.03 per cent, PZ Cussons Nigeria Plc with N0.95 kobo or 3.51 per cent, National Salt Company of Nigeria Plc with N0.64 kobo or 9.85 per cent, Dangote Cement Plc with N0.50 kobo or 0.41 per cent, Conoil Plc with N0.45 kobo or 2.24 per cent, B.O.C. Gases Plc with N0.28 kobo or 4.93 per cent and FBN Holdings Plc with N0.23 kobo or 1.48 per cent.

On the losers chart, Nigerian Breweries Plc led with N20.70 kobo or 12.55 per cent, Nestle Nigeria Plc follow with N9.94 kobo or 1.40 per cent, Guinness Nigeria Plc with N4.00 kobo or 1.51 per cent, 7-Up Bottling Company Plc with N2.00 kobo or 4.55 per cent, UACN Plc with N1.98 kobo or 4.50 per cent, Lafarge Wapco Plc with N1.95 kobo or 3.25 per cent, Oando Plc with N1.58 kobo or 11.26 per cent, Total Nigeria Plc with N1.11 kobo or 0.91 per cent, John Holt Plc with N1.00 kobo or 21.88 per cent and Unilever Nigeria Plc with N0.50 kobo or 1.06 per cent.

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