Equity marginal growth
THE Nigerian stock market lived up to its international posture in the wake of the nationwide strike called by the Nigerian Labour Congress (NLC), last week, as transactions in the equities market were not deterred by the five days strike which was coloured by protest around the country.

While the strike action called by the NLC to protestthe Federal Government’s decision on the removal of fuel subsidy paralysed all economic activities in the country, market indicators in the stock market was on the upbeat.

Although activities at the securities market was inundated with low volume trade, gains from major blue chips was enough to give the market the needed leverage to push up market indicators to the positive trajectory. Put differently by dealing members in the market, the removal of subsidy by the government has, once again, aside the earlier permutation by market experts that the market is likely to witness some relative growth in the New Year, served as a glug in the wheel of growth in the bond market.

According to them, the bond market, being a zero risk form of investment, is expected to witness some kind of variation in its coupon payment due to the short and long term effect of the removal of subsidy, hence the approach by investors to the stock market.

The lull expected in both the corporate and government (Federal and State Government) bond in terms of value occasioned return of investors to the stock market last week and hence the rise in market indicators.

Cumulative trading in the week shows that the NSE All-Share Index appreciated by 115.67 points or 0.6 per cent to close on Friday at 20,840.97, while the market capitalisation of the 186 First -Tier equities increased to N6.567 trillion. Also, the NSE-30 Index appreciated by 2.96 points or 0.3 per cent to close at 935.45. The NSE Consumer Goods Index (Formerly the NSE Food/Beverage Index) appreciated by 2.60 points or 0.2 per cent to close at 1,715.50. However, the NSE Banking Index depreciated by 3.01 points or 1.1 per cent to close at 268.42. The NSE Oil/Gas Index depreciated by 1.89 points or 0.8 per cent to close at 228.34 and the NSE Insurance Index depreciated by 0.10 points or 0.1 per cent to close at 128.57.

Assertions on trading in shares in 2012
Considering the low prices of shares on the floor of the Exchange, the market is expected to witness a beehive of activities, especially in some sub sector regarded as cash cow for investors. Investors Guide exclusively reported that the increase in the market activities will follow quest by investors to position early enough in the New Year, even as they will be leveraging on the fact that the year 2011 saw most stocks crashing to their rock bottom prices. Transactions in the market, especially the last quarter of 2011, saw the sell pressure from both local and foreign investors offloading their holdings in the market, just as the market witnessed a corresponding rise in value in the week.

Some of the issues on the NSE agenda in the New Year will be centered much on the quest to join the prestigious World Federation of Exchanges (WFE), the reduction in transaction fees, as well as the demutualisation plan. In terms of market efficiency, the Exchange’s CEO, Mr Oscar Onyema, is expected to focus on the new trading platform with eyes on remote access trading and the necessary changes in the memorandum and articles of association of the NSE. Transactions last week The first day of the general strike called by the NLC over the removal of fuel subsidy on Monday took its toll on trading activities on the Nigerian Stock Exchange (NSE) as total volume trade went down by 69.8 per cent.
Specifically, transactions which saw 152.8 million ordinary shares worth N1.5 billion done in 2,370 deals upper Friday went down to 46.1 million ordinary shares worth N584.9 million swapped in 209 deals on Monday.

A check by the Nigerian Tribune on the day’s trading showed that only a handful of dealing members (Stockbrokers) came to the trading floor while a greater number chose to stay away and engage on remote trading.

However, the twin market indicators, the market capitalisation and the All-Share Index rose by 0.38 per cent to close the day at N6.555 trillion and 20,802.33 points from N6.530 trillion and 20,725.30 respectively.

On the price movement chart, 11 companies appreciated in price, led by Vitafoam with 4.92 per cent to close at N5.54 per share, followed by Honeywell Flour with 4.65 per cent to close at N2.70 per share. Fidelity Bank gained 4.29 per cent to close at N1.46 per share while Red Star Express and Nigerins Plc chalked 4.00 per cent to close at N2.60 and N0.52 per share respectively. Conversely, Oando shed 3.27 per cent to close at N21.00 per share, while Guaranty Trust Bank lost 2.53 per cent to close at N13.83 per share.

A further review showed that the financial services subsector ranked first with 43.9 million shares worth N436.8 million in 133 deals. Transactions in the shares of Ecobank Transnational Incorporation boosted activities in the subsector with 30.6 million shares valued at N316.8 million. Tuesday’s trading on the floor of the Nigerian Stock Exchange continued on the upbeat on Tuesday despite the strike action. The equity market closed in the green leading to the appreciation of the both market performance indices by 0.49 per cent.

Trading activities on the floor still remained skeletal as a handful of dealing members were seen trading on the few preferred stocks.

However, most Stockbrokers who took part in the day trading did so through the Remote Trading facility.

Specifically, at the close of transactions in the day, the All-share index rose by 103.02 basis points or 0.49per cent from 20,802.33 recorded on Monday to 20,905.35 while the market capitalisation equally grew by N32 billion from N6.555 trillion to N6.587 trillion.

The financial services sector dominated in volume terms with 48.7 million shares worth N236.1 million in 144 deals.

The sector was driven by the banking sub sector of the financial services sector with the activities in the shares of Stanbic IBTC and Fidelity Bank which recorded a turnover of 48.6 million valued at N236.1 million in 143 transactions.

Beverages-Breweries/Distillers sub sector of the Consumer sector driven by the activities in the shares of Guinness followed with a turnover of 5.6 million shares valued at N1.2 billion in 40 deals. A total turnover of 58.2 million shares worth N1.6 billion in 300 deals was recorded at the day’s trading. At the close of trading, five stocks recorded price appreciations while eight others shed value.

Zenith Bank led gainers in percentage term with 2.33 per cent to close at N12.30 while GTB followed with a gain of 1.66 per cent to close at N14.08.

On the other hand, GSK topped the losers chart with five per cent to close at N21.85 per share while UBA followed with 4.68 per cent to close at N2.24.

Activities on the NSE on Wednesday closed on the negative note as the sell pressure outweighed bargain, thereby resulting in market indicators falling by 0.13 per cent.

Further transactions in the day showed that a turnover of 54 million shares valued at N649 million in 295 deals was recorded. The key benchmark indices dropped by 26.64 basis points or 0.13 per cent to close at 20,878.71 while the market capitalisation of 199 first-tier equities depreciated by N9 billion to close at N6.579 trillion. Financial services sector led the market transaction volume with 51 million units worth N435 million in 157 deals.

The banking sub-sector of the financial services sector was the most active during the day (measured by turnover volume); with 45 million shares worth N431 million exchanged by investors in 122 deals. Volume in the banking sub-sector was largely driven by activities in the shares of Zenith Bank Plc, First Bank Plc and Diamond Bank Plc. The number of gainers at the close of trading session in the day was 4 while decliners also closed at 8. However, Newgold Plc led on the gainers’ table with a gain of N43.00 kobo to close at N2, 573.00 kobo per share while Oando Plc followed with a gain of N1.05 kobo to close at N22.05 kobo per share and Guaranty Trust Bank Plc gained N0.07 kobo to close at N14.15 kobo per share. On the other hand, ETI Plc led on the price losers’ table, dropped N0.20 kobo to close at N10.50 kobo per share while FCMB Plc followed with a loss of N0.19 kobo to close at N3.91 kobo per share and Zenith Bank Plc with N0.15 kobo to close at N12.15 kobo per share. Trading activities on Thursday closed on the positive note as the key benchmark indices rose by 5.18 basis points or 0.02 per cent.

Specifically, the All-Share Index close at 20,883.89 points, while the market capitalisation of 199 first-tier equities appreciated by N2 billion to close at N6.581 trillion. Further review showed that four out of the five NSE sectoral indices closed positive as NSE 30 index which basically measures the performance of blue chips sustained uptrend by 0.01 per cent to closed at N937.87 points. NSE Food & Beverages index gained 0.02 per cent to close at 1,717.55 points, NSE Banking index moved up by 0.17 per cent to close at 270.34 basis point, NSE Insurance index also gained 0.30 per cent to close at 128.57 points, while NSE Oil & Gas lost 1.21 per cent to close at 228.34 basis points.

During the day, a turnover of 29 million shares valued at N350 million in 244 deals was recorded. Financial services sector led the market transaction volume with 27 million units worth N247 million in 191 deals.

The banking sub-sector of the financial services sector was the most active during the day (measured by turnover volume); with 27 million shares worth N247 million exchanged by investors in 190 deals. Volume in the banking sub-sector was largely driven by activities in the shares of Access Bank Plc, ETI Plc and Zenith Bank Plc. The number of gainers at the close of trading session ended at 5 as against 4 recorded in the previous session, while decliners also closed at 6 as against 8 losers recorded in the previous trading day.

Transactions ended the week, Friday, on the lowest trend as the twin market indicators, the All-Share Index and market capitalisation depreciated by 42.91 basis points and N13 billion respectively.