NSE insists on trading on suspended shares

Friday Ekeoba, Lagos - 27.03.2008

Prices of listed equities at the Nigerian Stock Exchange (NSE) on Wednesday continued on a downward slid even as the NSE is bent on trading on the shares of Afroil Plc and capital oil Plc which had been suspended.

It will be recalled that the Securities and Exchange Commission (SEC) had, last week, directed that trading in the shares of the two companies should be suspended following insider dealings discovered by the commission on its shares.

Insider dealing is an infraction in the market wherein a company would create artificial fundamentals of itself thereby helping its prices skyrocketing and this are usually done with the aid of market operators (stockbrokers)

At Wednesday’s trading, a total of 760,183 shares worth N16.6 million were swapped in 104 deals by investors in Afroil Plc while investors traded 420,130 shares worth N6.112 million in 27 deals.

The NSE through its principal manager on media, Mr. Sola Oni, had said the exchange was yet to receive a former letter from SEC. Some stakeholders who spoke with the Nigerian Tribune but preferred not to be mentioned in print said the NSE ought to have carried out the directives of the regulatory body rather feigning ignorance of the directives.

Further analysis of transaction carried out by the listed companies at the end of trading early afternoon on Wednesday showed that the daily investors’ cumulative average net worth dipped again for the second day running by 0.9 per cent.

The market capitalisation also fell by N105 billion to close at N12.142 trillion compared with N12.247 trillion recorded on Tuesday.

The all-share index lost 547.92 points to close at 63,098.46 points, down from 63,646.38 points achieved on March 25. Chevron led the price losers’ chart, shedding N17.03 to close at N367 per share.

Mobil Oil lost N10.40 to close at N197.60 per share, Capalberto share price dipped by N7.30 to close at N138.70,Skyeshelter fund slid N6.57 to close at N124.93 and ETI depreciated by N5.00 to close the trading at N251.00

Conversely, Enamelware led the price gainers appreciating N2.88 to close at N60.63. Alumaco share price went up by N1.88 to close at N39.51, Nig-German chemical gained N1.40 to close at N39.90 per share, Morison chalked N1.15 to close the day at N24.15 and 7 up Plc gained N1.88 to close at N55.00 respectively.

Further analysis of the market showed that the banking sub-sector remained the toast of investors with 535.76 million shares worth N13.33 billion traded in 7,857 deals.

A further breakdown of activities in the banking sub-sector showed that Access Bank accounted for the bulk of trading with 118.13 million shares valued at N2.66 billion in 334 deals.

The Insurance sub-sector followed with 364.79 million shares valued at N1.68 billion in 4,477 deals while the Conglomerates sub-sector accounted for N465.48 million staked on 48.27 million shares in 1,191 deals.

In all, investors today bought 1.11 billion shares worth N19.30 billion traded in 20, 258 deals.