Investors' relief over continued dip in value

INVESTORS in the domestic capital market, who recently appeared to have been caught in the decline in share price in the stock market, have breathed a sigh of relief as value of equities further firmed up in three transaction days last week.

Purchase of stocks by investors had dictated transaction value penultimate week, as situation saw the twin market indicator climbing amid profit taking by investors.

During the week under consideration, investors' attitudinal behaviour towards shares in the equities market, coupled with the availability of fund in the market, allowed the bulls to dominate activities, and this trend controlled activities in the market on Wednesday, Thursday and Friday.

The positive turnout forecast on returns on equities, prior and post the release of financial of banks at the end of the first quarter in the stock market and the consistency in return of confidence saw value of equities on the up swing.

The cumulative trading figures in the week showed that the NSE All-Share Index appreciated by 556.55 points or 2.52 per cent to close on Friday at 22,665.99, while the equities market capitalisation appreciated from N7.051 trillion to N7.228 trillion.

Similarly, all of the NSE sectorial indices appreciated during the week compared to the preceding week. The NSE-30 Index appreciated by 33.23 points or 3.29 per cent to close at 1,041.75. The NSE Consumer Goods Index appreciated by 43.53 points or 2.43 per cent to close at 1,831.25. The NSE Banking Index appreciated by 25.43 points or 7.95 per cent to close at 345.16. However, the NSE Insurance Index depreciated by 1.77 points or 1.42 per cent to close at 126.71 followed by The NSE Oil/Gas Index by 1.79 points or 0.93 per cent to close at 194.32.

As at Friday in the market, SEC and NSE were still engaged in a quest to positively drive activities in the market.

With the ongoing probe panel at the House of Representatives, screening the activities of regulators in the 2008 stock market meltdown, investors are gradually and consistently becoming more confident about investment in the market.

Yearn for shares at the beginning of the year
Activities at the beginning of the year saw investors taking position in the market due to the rock bottom prices of stocks across all the subsectors and the belief that the intervention of AMCON in the market will further help deepen the market.

This planned buying of shares, especially in the banking industry, greatly drove the performance measuring parameters of the equities market, thus making the market to experience growth since the beginning of the second quarter.

As things stand now, not only have the banking shares firmed up in value; considering the level of confidence in the market by investors which is growing by the day, the market as a whole has become better for it.

Explaining the global trend recently, an expert in capital market affairs, Mr Okposor Elakemeh,said that; “globally, there are hopes that the downturn in the global scene is disappearing.

However, agitations among the investing public in the market, last week, revealed that the regulatory bodies in the market must put strict framework in place to check any major decline in the composite index value which may arise from massive sales of shares in the event of continued rise in the value of equities.

Trading in shares last week
Trading value on the NSE on Monday saw market indicators depreciating by 0.28 per cent as most blue-chip stocks suffered depreciation in the day's trading.

The twin market indicators, the market capitalisation fell by N20 billion, from N7.050 trillion to N7.030, while the All-Share Index dropped 63.78 basis points to close the day at 22,045.66 from 22,109.44 respectively. The market indices had been on the upward trend in the last couple of weeks.

However, turnover volume recorded slight margin increase as 669.3 million shares worth N6.3 billion were exchanged in 4,141 deals, higher than 413.7 million shares worth N3.109 billion exchanged in 4,775 deals on Friday.

On the day's price movement chart, Oando Plc led the losers with a 4.65 per cent to close at N16.20 per share, while Cultix Nigeria followed, losing 4.61 per cent to close at N1.45 per share. Livestock Plc and Dangote Sugar depreciated by 4.12 and 3.52 per cent to close at N0.93 and N3.51 respectively.

On the other hand, Cadbury Plc led the gainers' chart with a gain of 5 per cent to close at N15.12, FCMB followed with a price appreciation of 4.97 per cent to close at N5.49.

Other gainers in the day include UBA, Okomu-Oil and Custodian Plc with a gain of 4.76, 4.55 and 4.2 per cent to close at N3.74, N34.50 and N1.62.

The banking sub-sector maintained its position on the sectorial chart, trading 468.8 million shares worth N4.024 billion exchanged by investors in 2,113 deals. The C & Leasing under the Employment Solution in the Service subsector ranked second with 97.5 million shares worth N48.8 million done in 33 deals. Insurance sub-sector closed as the third most traded with 16.8 million shares valued at N10.1 million which changed hands in 120 deals.

On the whole, investors bought 669.3 million shares valued at N6.3 billion exchanged in 4,141deals.

After Tuesday's public holiday to commemorate May Day (Workers' Day), equity transactions on the NSE closed in an upbeat on Wednesday, as major blue chip companies appreciated in price, resulting in the All-Share index rising by 1.3 per cent.

31 companies constituted the gainers' chart, led by Guarantee Trust Bank with 4.99 per cent to close at N16.82 per share, followed by Cadbury with 4.96 per cent to close at N15.87 per share.

Zenith Bank added 4.94 per cent to close at N14.86 per share, while Access Bank and First Bank garnered 4.94 and 4.91 per cent to close at N6.16 and N10.47 per share.

Other gainers in the days transactions include RT Barrack, Union Bank and Skye Bank, which added 4.86, 4.81 and 4.80 per cent to close at N1.51, N4.14 and N4.15 per share.

UAC-Properties and Paint Company also gained 4.67 and 4.55 per cent to close at N11.21 and N0.92 per share.

However, 11 companies depreciated in price, as Gold link insurance topped the losers' chart with five per cent to close at N0.57 per share. Cement Company of Northern Nigeria followed with 4.75 per cent to close at N4.81 per share.

May & Baker lost 4.52 per cent to close at N1.90 per share, while Continental Reinsurance shed 4.00 per cent to close at N0.72 per share.
Japanese, Julius Merger, Fresco dropped 3.57, 3.19 and 2.95 per cent to close at N0.54, N30.00 and N11.50 per share.

Oando and UACN also shed 0.49 per cent to close at N16.12 and N32.59 per share respectively.

Consequently, the All-Share index rose by 305.34 points or 1.3 per cent from 22,109.44 recorded on Monday to 22,351.00, while market capitalisation increased by N97billion, from N7, 030trillion to N7, 127trillion.

With transactions exchanged in 2,230 deals, the banking sub sector remains the most active stock in volume terms with 420million shares worth N3.5billion, followed by the insurance sub sector with 22 million shares worth N13million in 142 deals.

Activities on the NSE gained N157 billion within the first two trading days in the month of May.

During Thursday's trading, the NSE All-Share Index rose by 186.98 basis points or 0.84 per cent to close at 22,537.98, while the market capitalisation of 187 first-tier equities appreciated by N60 billion from N7.128 billion to close at N7.188 trillion.

97 equities were traded as against previous 104 with more activities recorded in Financial Services, Services, Consumer Goods, Conglomerates, Construction/Real Estate, Oil & Gas, Industrial Goods, Healthcare and Agriculture sectors.

In the same vein, four out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips sustained uptrend by 1.11 per cent; NSE Consumer Goods closed upbeat by 3.01 per cent, NSE Insurance recorded 0.87 per cent and NSE Oil and Gas with 1.06 per cent gain while NSE Banking recorded 0.05 loss.

Financial Services sector led the market transaction volume with 497 million units valued at N3.440 billion exchanged in 2,564 deals as against 443 million units valued at N3.571 billion exchanged in 2,375 deals recorded in previous session.

The volume recorded in the sector was driven by transactions in the shares of United Bank for Africa Plc (UBA), Mutual Benefits Assurance Plc, Guaranty Trust Bank Plc (GTB), First Bank Plc and Zenith Bank Plc.

The number of gainers at the close of trading session closed higher at 28 as against 31 recorded in the previous session, while decliners closed lower at 13 as against 11 losers recorded in the previous trading day.

On the gainers' chart, Guinness Nigeria Plc led with N2.00 kobo to close at N242.00 kobo, WAPCO Plc gained N1.99 kobo to close at N41.79 kobo and Oando Plc with N0.75 kobo gain to close at N16.87 kobo.

On the other hand, Okomu Oil Plc lost N1.49 kobo to close at N33.01 kobo, Ecobank Transnational Incorporation Plc (ETI) with N0.49 kobo to close at N11.20 kobo and International Breweries Plc with N0.29 kobo to close at N5.69 kobo

The market closed the week on Friday on a further high note, as the market capitalisation and the All-Share Index closed the trading week at N7.228 trillion and 22,665.99 basis point after appreciating by N41 billion and 128.01 points.