INVESTORS in the capital market have adopted the attitude of wait and see in reaction to recent changes that took the stock market by surprise whether it will have any meaningful effect on the market or not.

The change in the top management of the Nigerian Stock Exchange (NSE) is expected to inject a new lease of life into activities in the market. This is expected to boost  investors’ confidence currently  at its lowest ebb  and leading to  improvement in volume and capital appreciation of stocks.

The reform in the market which is an offshoot of many years of painstaking efforts by the Securities and Exchange Commission (SEC), the apex market regulator, through the Ministry of Finance, according to some operators, came at a time when the market was still strugglingto find its feet after a loss of over nine trillion naira investors’ fund.

The mindset of people in the market was that the change in the market would bring the much desired growth that would leverage on the sound corporate governance that is currently being put in place if not for the wrong time adopted for the implementation.

Another set of investors  argued that that there was no better time for the Commission to exercise its powers under the Investment and Securities Act (ISA) to put a round peg in a round hole. They reasoned that successive managers at the market’s apex body, had allowed weak corporate governance and high net worth share price manipulation that resulted in the loss of huge revenue by investors.

While, the reform in the stock market is ongoing, investors have called for the prosecution of operators and officials that  contributed in one way or the other to the failure of equities market. The investors queried that, why the enabling law to prosecute offenders are much available, it is being experimented only on offenders who cannot pay the price of their complicity in any fraudulent activities, as it relates to share price manipulation or any other infractions in the market.

This is why it is necessary for the regulator to embark on awareness campaign so as to  create opportunity for activities to rebound and discourage  exit of active players in the market.

The situation that is likely to occur because there are already signs, is that the market is heading towards stagnation, where millions of shares will be available for sale and no buyer will be willing to stake his capital into the purchase of  penny stocks  that are greater in numbers than  highly capitalised  stocks.

The new sole administrator of the market, Mr. Emmanuel Ikazoboh, as at the last count in the market, had engaged in several cost cutting measures, so as to put the market, which is said to be the barometer for measuring the growth and development of the economy on a sound footing.

As a renowned chartered accountant, all areas of wastages that are synonymous with past director generals of the market  have been blocked.

Ikazoboh, at the last check, has also spread and intensified his forensic investigation to areas which are likely to enable him unravel the truth or otherwise of the allegation of the misappropriation of N11 billion levied against, Professor  Ndi Okereke-Onyuike, the erstwhile DG of the market.  Also, Mr. Farooq Oreagba, the former General Manager Strategy and New Products at the Exchange was arrested following allegations  that he removed  properties of the  Exchange.

A review of transaction in the market last week showed that, as in the preceding week, African Petroleum Plc led on the gainers’ table with a gain of N4.24, Nestle Nigeria with N4.00 followed closely.

Chemical & Allied Products, Benue Cement Company Plc and Ashakacement gained N3.26, N2.50 and N2.05 respectively Plc while Guinness Nigeria Plc, MRS Oil, PZ Cussons Plc, Nigerian Bottling Company and 7UP Bottling  topped the losers’ chart.

With the equities market being unable to sustain the bull runs in the market that started penultimate Thursday, transaction opened Monday on a downward note as performance indicators saw investors wealth depreciating by 0.2 per cent even as gainers outweighed lossers in the day’s activities.

Turnover  also witnessed a decline, as 194.1 million shares, valued at N1.8 billion changed hands, lower than 227.8 million units, worth N2.1 exchanged  by investors the previous Friday.

Market watchers linked  the drop in volume of shares   to the on-going offloading of shares by market operators who are eager to meet up with the CBN’s directive that banks that are at risk must not have their portfolio assets in the stock market exceeding 10 per cent before September 1.

It would be recalled that, 70 per cent of banks toxic asset were loan packaged as margin facilities to operators in the equities market.

Twenty-six stocks depreciated in price in the day, led by Nigerian Breweries Plc with 315 kobo. PZ Cussons Plc followed with 167 kobo, while Ashakacement Plc, Dangote Flourmill Plc and National Salt Company of Nigeria Plc shed 50 kobo, 40 kobo and 38 kobo per shares.

On the other hand, Northern Nigeria Flourmill Plc emerged the  highest price gainers with 202 kobo.

Flourmills Plc followed with 19 kobo while CAP Plc, Benue Cement Company Plc and West African Portland Company Plc, adding 159 kobo, 100 kobo and 94 kobo per share respectively
The banking sector remained the most active  transaction with 135.6 million shares worth N1.2 billion swapped in 3,320 deals. The insurance sub-sector followed with 13.3 million units, worth N14.7 million in 273 deals while the food/beverages & tobacco sub-sector traded with 6.9 million units, valued at N145.5 million in 560 deals.

Transactions on the exchange, though closed on the upbeat on Tuesday, with most blue chip companies recording price appreciation, market capitalisation was greatly enhanced in value due to the special listing of Skye Bank Plc units’ shares of 1.6 billion at N7.00.

The equities market closed the day with an increase of N23billion.

Volume of shares traded also increased significantly, as 373.4million shares worth N2.6billion changed hands in 7244deals, higher than 194.1million units valued at N1.8billion traded in5, 874deals on Monday.

The market capitalization of equities gained 0.38 per cent to close at N5, 946 trillion while the All-share index appreciated by 47.11 basis points or 0.19 per cent to close at N24, 268.24 index points.

On the whole, 36 stocks recorded appreciation in value while 32 stocks depreciated in value. Cap Plc led the gainers table with a gain of N1.67.  UACN followed with a gain of N1.33, while Nigerian Breweries added N1.04.

Guinness Nigeria led the losers’ table with a loss of N2.00. Okomu Oil followed with a loss of 69 kobo while Avon Crown, Cement Company of Northern Nigeria, Ecobank TransNational Incorporated and Honeywell Flour Mill shed 38 kobo, 30kobo and 30kobo per share.

Investors staked a total of 373.4 million shares worth N2.6 billion in 7,244 deals.

Further analysis of transactions showed the banking sub-sector also dominated activities with a turnover of 167.5 million shares valued N1.4 billion in 3,945 deals while insurance sub-sector followed with a turnover of 159.7 million shares valued at N235.4 million in 320 transactions.

The high volume of shares traded in the sub-sector was largely driven by the activity in the shares of First Bank Plc, Diamond Bank Plc, Access Bank Plc  and GTB. Trading on the shares of the four banks accounted for 95.8 million ordinary shares or 42.8 per cent of the sub-sector turnover.

Losses incurred by major blue chip stocks on the Exchange Wednesday saw composite index ending a marginal 0.09 per cent downside or N5 billion decreases.

Turnover of share also slid  to 254.6 million shares worth N2.11 billion in 7,165 deals compared with 373.4million units valued at N2.8billion exchanged in 7,244deals traded on Tuesday.

Particularly, the market capitalisation of listed equities dipped by N5 or 0.08 per cent from N5, 946 trillion on Tuesday to N5, 941trillion yesterday.

Similarly, the All-Share Index depreciated by 21.19 points to close at 24,247.05 compared to the 24,268.24 achieved by the NSE on August 31.

A further review of transaction showed that the banking sub-sector took the lead in sectors’ performance analysis with 129.30 million shares amounting N1.31 billion traded in 3,392 deals.

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The sub-sector was boosted by the shares of Guaranty Trust Bank (GTB) and Zenith Bank.
All the indices ended in red on Thursday: the stock market value dipped in the day by 4.09 per cent while transaction volume fell 15.02 per cent and the composite index declined 0.18 per cent as stock traders ruminate the final withdrawals of outstanding estimate of one trillion naira securities credit by all commercial banks as well as the new 10 per cent limit of margin loans set by the Central Bank.
Stock brokers said at the end of trading activities during the day  that they are 'uncertain' about the market direction based on the latest directives on the contentious securities credit.
On the activities chart, African Petroleum continued to advance, adding 0.48 per cent. The banking sector was better by 0.19 per cent as investors exchanged almost 148 million shares led by First Bank, GTBank, Access, Finbank and Zenith. The listed price of industrials were mixed: Dangote Sugar ended higher 0.49 per cent but  the shares of NASCON dropped as trading action  after the recent full year declaration of 50kobo cash dividend. Dangote Fl as a result poor transaction. The same thing happened to the shares of  Cadbury and Honeywell Flour.The market closed the week on Friday on the upbeat as the market capitalisation rose by N10 billion while the index increased by 38.66 points to close the week at a high of N5,940 trillion and 24,241.84 points respectively.