Wednesday, December 8, 2010

The performance of Stock market remains weak

The decline in equities’ market capitalisation at the Nigerian Stock Exchange (NSE) continues on Tuesday, as about N47 billion was lost, reflecting 0.59 percent downturn. It had on Monday lost over N7 billion.

The market capitalisation closed yesterday’s transaction at N7.871 trillion, from Monday’s figure of N7.918 trillion. The NSE All-Share Index also shed 147.39 units or 0.59 percent, down from 24,785.56 basis points to close at 24,638.17.
Market analysts at Resource Cap, a portfolio management company, said the weak trading activities being experienced is as a result of “some investors selling in anticipation of another round of rebound in the capital market.”
Notwithstanding the pessimistic mode in the market, the analysts said “performance will soon be bullish since a normal market is expected to move down for a while and move up after some times.”
Low gainers
A total of 19 stocks appreciated in price on Tuesday while 41 stocks depreciated in value.
Northern Nigeria Flour Mills and Nigerian Bottling Company topped the price gainers’ table with an increase of N1.99 and N1.50 on their opening prices of N39.98 and N30.00 per share respectively. Ashaka Cement and Unilever Nigeria followed in the chart with an increase of N1.01 and 51 kobo, to close at N26.00 and N27.30 per share.
On the flip side, Nigerian Breweries and Cadbury Nigeria led the price losers’ chart with a loss of N1.78 and N1.05, to close at N77.01 and N26.50 per share respectively. African Petroleum and Zenith Bank followed with a decrease of 92 kobo and 70 kobo on their initial prices of N20.12 and N14.91 per share respectively.
Bank leads
The banking subsector maintained its lead as the most active, with 159.02 million units valued at N1.36 billion exchanged in 3,656 deals, as against 161.80 million units valued at N1.34 billion exchanged in 3,527 deals recorded on Monday.
The volume recorded in the sector was driven by transaction in the shares of United Bank for Africa, Guaranty Trust Bank, Zenith Bank, First Bank, and First City Monument Bank. The total volume of 91.38 million units valued at N1.10 billion, traded in the shares of the five stocks accounted for 35.27 percent of the entire market volume and their value represented 46.06 percent of the market’s value.
Transaction volume on the Exchange dropped by 16.18 percent to close at 259.17 million units, exchanged in 6,122 deals, as against an upbeat of 57.31 percent recorded the previous trading, to close at 309.20 million units exchanged in 6,212 deals.
The NSE on Tuesday marked down the price of Guinea Insurance for a dividend of 1 kobo. The dividend payment date for its shareholders is 16th December.
Meanwhile, the Exchange yesterday said the regulation and risk management directorate has developed a new financial reporting format for all dealing member firms “to make for uniform reporting and ease of comparism.”
“In order to fully implement this initiative, all chief financial officers and chief compliance officers of dealing member firms are to attend a two-hour briefing on the format on Thursday,” it said.
Source:234next.com

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