Friday, December 17, 2010

Despite trading extension, market still wobbles

The indices for measuring market performance at the Nigerian Stock Exchange (NSE) have been unsteady since trading hours were extended last Monday.
While some market watchers attributed the wobbly stock performance to the extension of trading hours, some market analysts said it is too premature to judge the success of the extension.

Analysts at Proshare Nigeria, an investment advisory firm, said, "Although it is too early to judge the success or otherwise of the trading hour's extension based on only the first week of trading, but it is obvious that the trading volume, price trend, and the NSE share index were not positively impacted by the extension."
"We believe that the NSE should have worked on improving the liquidity of the exchange before extension of trading hours," they addded.
Meanwhile, stockbrokers at GTI Capital said the market is expected to pose some resistance following the "swinging character" in recent period.
"Nevertheless, this may be defiled considering the ongoing market fundamentals enhanced by festive season. Good investment strategy remains the medium and long term. Traders may position for expected fourth quarter result; targeting exit between February-March," they said.
Banks dominate
The banking subsector of quoted equities at the NSE boosted market performance on Wednesday, as measuring indices inched up by 0.84 percent after days of decline.
The banking subsector lead as the most active subsector yesterday with 195.710 million units valued at N1.578billion, while Access Bank, First Bank, Guaranty Trust Bank, Zenith Bank, and Intercontinental Bank were the most traded stocks.
The Exchange market capitalisation of the 201 First-Tier equities closed on Wednesday at N7.830 trillion after opening the day at N7.765 trillion, reflecting N65 billion gains. Although the market gained N6 billion after Tuesday's session, it had lost over N126 billion in the last one week since the new trading period commenced.
The NSE All-Share Index also gained 0.84 percent or 204.21 units on Tuesday's figures of 24,306.83 basis points, to close on Wednesday at 24,511.04.
Low gainers
A total of 25 stocks appreciated in price on Wednesday while 28 stocks depreciated in value. Lafarge Wapco Cement and Nigerian Bottling Company topped the price gainers' table with an increase of N1.94 and N1.57 on their opening prices of N39.00 and N31.53 per share respectively. Dangote Cement and Dangote Sugar followed in the chart with an increase of N1.50 and 74 kobo, to close at N124.50 and N16.59 per share.
On the flip side, two petroleum marketing companies, Mobil Oil and MRS Oil, led the price losers' chart with a loss of N3.88 and N3.68, to close at N141.00 and N70.06 per share respectively. Northern Nigeria Flour Mills and African Petroleum followed with a decrease of N2.09 and 99 kobo on their initial prices of N41.97 and N23.00 per share respectively.




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