16 February 2013

Nigeria: NSE Capitalisation Declines by 16.1 Billion in Profiteering

Lagos — Nigerian Capital Market witnessed increased pessimistic trading in the week as investors engaged in consistent profit taking activities while the market capitalisation traded downward with N16.07 billion.

However, the market capitalization of the listed equities depreciated by 0.15 per cent to close at N10.643 trillion.

The NSE All-Share Index depreciated by 55.04 points or 0.17 per cent to close on Friday at 33,258.45.

Three of the NSE sectorial indices depreciated: Bloomberg NSE 30, Bloomberg NSE Consumer

Goods and Bloomberg NSE Banking by 3.81 per cent, 3.22 per cent and 4.40 per cent respectively, while Bloomberg NSE Insurance, Bloomberg NSE Oil/Gas and NSE Lotus II appreciated by 4.19 per cent, 1.22 per cent and 6.03 per cent, respectively.

On Monday, Nigerian stocks extend gains to open the week on a positive trend as investors maintained active bargain posture.

The market capitalization of 187 first-tier equities appreciated by N63.39 billion to close at N10.72 trillion as against appreciation by N30.16 billion recorded in preceding trading day session.

At the close of trading session, the NSE All-Share Index extends gains by 0.59 per cent to close at 33,511.63 as against uptrend by 0.28 per cent recorded in the previous session to close at 33,313.49.

Market traded downward on Tuesday as the key benchmark indices succumbed to last minute volatility. In addition, the outlook reveals strong profit-taking propensity, considering the huge sell pressure witnessed across board, particularly towards active and value stocks that are trading at their tops.

At the close of trading session, the NSE All-Share Index fell by 23.81 basis points to close at 33,487.82.

In the same vein, market capitalization depreciated by N8 billion to close at N10.714 trillion.

On Wednesday, equity market recorded another bearish session in two days, extending downtrend on the back of sustained pessimistic trading as speculators increased profit-taking activities towards active stocks across the board while the market breadth weakened further amid positive market turnover.

The market capitalization depreciated by N42.31 billion to close at N10.67 trillion, while the NSE All-Share Index fell further by 0.40 per cent to close at 33,355.54.

Market activities on Thursday extend the downtrend for the third time at a stretch on the back of continued profit-taking.

121 equities were traded on Thursday as against previous 124 with more activities recorded in Financials, Conglomerates and Oil & Gas sectors.

At the close of trading session on Thursday, the NSE All-Share Index fell further by 0.04 per cent to close at 33,342.02.

In the same vein, market capitalization depreciated by N4.32 billion to close at N10.66 trillion.

While equities lost breadth on Friday as market succumbed to increased volatility to end the last trading day of the week with loss of N26 billion to close at 10.642 trillion and NSE All-Share Index fell by 83.57 points or 0.25 per cent to close at 33,258.45.

During the week, a turnover of 4.249 billion shares worth N23.177 billion in 39,391 deals were transacted on the floor of the exchange in contrast to a total of 3.572 billion shares valued at N24.692 billion that exchanged hands last week in 39,321 deals.

The Financial Services sector continued its dominance as the most active during the week, contributing 76.53 per cent, 61.87 per cent, 60.51 per cent to the total equity turnover volume, value and number of trades respectively in 3.252 billion shares valued at N14.339 billion exchanged hands by investors in 23,835 deals.

Unity Bank Plc from the Banking subsector, International Energy Insurance Company Plc and Sovereign Trust Insurance Plc of Insurance Carriers, Brokers and Services subsector of the Financial Services sector was the most active during the week (measured by turnover volume). Trading in the shares of the three equities accounted for 888.791 million shares worth N700.617 million in 2,634 deals, representing 27.33 per cent and 20.92 per cent of the turnover volume recorded by the sector and total turnover for the week, respectively.

The Conglomerates sector followed with a total turnover volume of 363.527 million shares worth N964.618 million in 2,053 deals. Similar to the previous week, volume in the sector was largely driven by the shares of Transnational Corporation of Nigeria Plc with a turnover volume of 355.103 million shares valued at N698.511 million in 1,610 deals.

A review of the equity price movements indicated that 51 equities gained while 42 equities recorded price declines and 104 equities remained constant.

When compared with the preceding week, 73 equities gained while 18 equities recorded price declines and 106 equities remained constant.

Nestle Nigeria Plc led the gainers with N20.27 kobo or 2.49 per cent, Okomu Oil Palm Plc with N7.63 kobo or 14.13 per cent, Glaxo Smithkline Consumer Nigeria Plc with N7.49 kobo or 15.74 per cent, Mobil Oil Nigeria Plc with N5.53 kobo or 4.59 per cent, Cap Plc with N2.36 or 6.99 per cent, Northern Nigeria Flour Mills Plc with N1.87 kobo or 10.17 per cent, Mrs Oil Nigeria Plc with N1.58 kobo or 5.76 per cent, Conoil Plc with N1.10 kobo or 5.00 per cent, Dangote Cement Plc with N1.00 kobo or 0.69 per cent, and Berger Paints Plc with N0.80 kobo or 7.21 per cent.

Guinness Nigeria Plc led on the losers chart with N7.41 kobo or 2.49 per cent, followed by Lafarge Wapco Plc with N5.20 kobo or N7.01 per cent, Total Nigeria Plc with N3.99 kobo or 2.83 per cent, Forte Oil Plc with N2.41 kobo or 14.46 per cent, Flour Mills Nigeria Plc with N2.26 kobo or 2.83 per cent, Ashaka Cement Plc with N1.61 kobo or 6.19 per cent, Cadbury Nigeria Plc with N1.59 kobo or 4.09 per cent, International Breweries Plc with N1.45 kobo or 5.75 per cent, Julius Berger Nigeria Plc with N1.00 kobo or 1.49 per cent, and Stanbic IBTC Holdings Plc with N0.75 kobo or 4.76 per cent.

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