Lull in transactions at NSE
THE bearish trend outlook in the market started on Monday (31/10/2011), the previous week, following the fall in market capitalisation and the All-Share Index which closed the week at a value of N6.52 trillion and 20,532.41 basis points respectively.  Some of the dividends declared in the third quarter of the year could not get positive reactions from the investors as the share prices maintained southward trend as against the expected uptrend in their share prices.  Transaction volume closed the week on a lower note when compared with the figures recorded at the close of trading the previous week. As usual, banking sector emerged the most traded sector with 42703 million units valued at N3.8 billion exchanged in 6,238 deals. Transactions in the shares of First Bank of Nigeria, Guaranty Trust Bank Plc and UBA Plc largely boosted the volume traded in the sector.

Transaction volume in the week was grossly affected by the two-day Muslim celebration.   The decline recorded in the market cut across almost all the sector with the exception of the Insurance and Petroleum Marketing sectors that staged a rebound. There was evident of bears grip on majority of blue chips stocks as indicated by the trend recorded in the NSE-30 index at the close of trading session.

Notwithstanding the bearish outlook of the market, investors are enjoined to look out for the valued stocks which prices have declined as the present negative outlook in the market may not last, most especially considering some of the positive developments in the market.

Why value continues to dip at NSE

The trend in the week further goes to explain that most investors are yet to come to terms with what the equities market really stand for. It is a market for investors who are expected to invest their money for a long time gestation period.

Just like other clime, investors invest their money for long period while savouring the dividend and capital appreciation that usually accrue from such investment. Other crop of investors who form majority of the common investors usually use investment in the stock market as a shock absorber after retirement from active service.

Equity trading last week

Transaction in equities which commenced on the NSE on Wednesday closed on a lull note, as heavy price losses were incurred by most blue chip companies, just as market capitalisation of all listed companies slid by N13billion.

A review of price movement showed that 22 companies depreciated in price, led by Wema bank with five per cent to close at N0.57 per share, followed by Enamelware and WAPCO with 4.99 per cent to close at N36.19 and N36.15 per share respectively.

CAP lost 4.95 per cent to close at N15.16 per share while Capital Hotel shed 4.93 per cent to close at N7.13 per share.

Eternaoil, C&I Leasing, Paint Company lost 4.76, 4.71 and 4.41 per cent to close at N4.00, N0.81 and N0.65 per share.

Sterling bank and Presco also lost 3.85 per cent to close at N1.25 and N7.50 per share respectively.

On the other hand, Oando topped the gainers chart with five per cent to close at N26.88 per share while NAHCO added 4.99 per cent to close at N5.89 per share.

Okomuoil, Ikeja Hotel, Guaranty Assurance.gained 4.97, 4.62 and 4.41 per cent to close at N21.35, N2.49 and N1.42 per share.

Consequently, the All-Share Index dropped by 40.9 basis points or 0.1per cent from 20,532.41 recorded last week Friday to 20,491.51 while marker capitalisation fell by N13billion from N6,516trillion to N6,503trillion.

Activities on the NSE continued on Thursday on the negative trajectory as the market measurement major, the All Share Index and market capitalisation declined by 0.2 per cent.

Specifically, the All Share Index deepened by 41.07 basis point to close the day at 20,450.44 as against 20,491.51 in the previous trading while the market depreciated by N13 billion to close the day at a low of N6.490 trillion from N6.503 trillion on Wednesday.

23 quoted companies recorded price depreciation in comparison to 12 that appreciated in price at the end of the day’s transactions.

RT Briscoe Nigeria Plc led on the flip side with 4.94 per cent decrease to close at N1.54 per share, followed by NAHCO with 4.92 per cent loss to close at N5.60 per share. Evans Medical lost 4.82 per cent to close at N0.79 per share and Guaranty Assurance trailed behind, dropping 4.81 per cent to close at N2.77

On the other hand, Ecobank Nigeria led the pack of other gainers, rising by 5.00 per cent to close at N1.89 per share. Forte Oil followed with 4.90 per cent increase to close at N10.54 per share. Evan Medical rose by 4.82 per cent to close at N0.79 and Guaranty Assurance appreciated by N0.53 to close at N2.77 per share respectively. The insurance subsector dominated activities on the sectoral chart, accounting for 266.4 million shares worth N146.1 billion exchanged in 3,799 deals. The Banking subsector followed with traded volume of 152.2 million shares valued at N1.368 million done in 2,054 deals.

Great Nigerian Insurance Plc posted 233.3 million shares valued at N116.6 million exchanged by investors in 5 deals to top others on insurance subsector, while First Bank accounted for 39.4 million shares worth N393.2 million in 534 deals.

The heavy transactions in Great Nigerian Insurance, according to an expert, indicated investment realignment by a core owner selling to another core investors

In all, investors bought 480.2 million shares valued at N212 billion done in 3,799 deals.

Activities closed the week on Friday on a further depressed note as the market capitalisation of all listed equities slipped by 0.17 per cent to end trading in the day at N6.479 trillion just as the All-Share Index dip by 34.34 basis point to close transactions in the day at 20,416.10.

A cumulative of trading in the week showed that a turnover of 937.44 million shares worth N5.98 billion in 11,563 deals was recorded, in contrast to a total of 1.31 billion shares valued at N12 billion exchanged previous week in 17,863 deals. There were no transactions executed through the stock market in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.