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Low trading persists at NSE -As Julius Berger, FirstBank top gainers’ table
TRANSACTION on the Nigerian Stock Exchange (NSE), last week, saw investment value still on the downward trend, as investors' approach to share purchase remains at its low ebb.
Investors in the week were still sandwiched between low volume transactions even as trading in the week was majorly dominated by both penny stock and mid-cap stocks.
The five days trading in the week show a no departure from what the market looked like at the close of transactions the previous week when the market deepened by above 150 billion The loss in the week was also driven by investors' apathy to investment in the stock market. .
Why the regulators appear to be scoring some points in the area of trying to put machinery in place as regard regulations to properly position the market in line with international best practices, the moral side that is expected to jump start interest in the market is missing.
Low price stock still best to invest
With the state of health of investment in the nation's capital market, shareholders in the domestic economy have been told that the penny value of stocks on the equities market is an opportunity for every descerning investor to invest in.
Speaking over the penny stock nature of some stocks in the market, which has refused to rise in value, Chairman, Association of Shareholders Group, Northern zone, Chief Anderson Peterson-Okorie, said approaching the market at this point in time would give opportunity to investors to enjoy not only capital appreciation but huge return on investment when the market fully rebounds.
According to him, the market fundamentals of most listed companies is sound, noting that investors' apathy towards purchase of shares in the domestic economy in the face of both internal security challenges and global financial contraption had been one major issue militating against market growth.
Speaking on investors' education recently, National Co-ordinator, Independent
Shareholders Association of Nigeria, Sir Sunny Nwosu, explained that while investor's education was important to improve participation in capital market activities, there were other initiatives that required their attention if the market was to be repositioned for the Nigerian capital market to be the truly gateway to African markets.
Need for liquidity to resurface
The urgent need for injection of fund into the stock market which should be channelled towards purchasing of stocks must be encouraged if trading in the stocks market is to be enhanced.
These new lease of breath, though it will be attended with profit taking which characterises activities during capital appreciation in the market, will do both local and institutional investors ( foreign investors) lot of good as it will drive activities in the equities market even as the value of investment in the market will rise again.
Investors, especially those outside the shore of the country, according to findings, are beginning to take position on virtually all the listed stocks but with much emphasis through their brokers on banks stocks.
Further findings revealed that the investors are of the belief that with the banks coming up with a sound bottom line devoid of non-performing loan, they are bound to return to more profitability even as their stocks are set to chalk up in value following the regulation in the financial sector aimed at galvanising transparency and credibility.
Equity trading in the week
Trading activities on the floor of the Nigerian Stock Exchange closed in the red on Monday, following price losses suffered by major blue chip companies, as market capitalisation of equities depreciated by N23 billion.
At the close of trading session, the NSE All-Share Index moved down by 0.32 per cent to close at 22,309.62 .
In the same vein, market capitalisation depreciated by N23 billion or 0.32 per cent to close at N7.114 trillion.
The number of gainers at the close of trading session closed flat at 18 while decliners closed higher at 20.
Meanwhile, a turnover of 191.5 million shares worth N2.3 trillion in 4,019 deals was recorded in the day.
The banking sub-sector of the financial services sector was the most active during the day (measured by turnover volume); with 106.9 million shares worth N933.6 million exchanged by investors in 2,100 deals.
Volume in the banking sector was largely driven by activities in the shares of Zenith Bank Plc and UBA Plc.
Also, Insurance sub-sector of the financial services sector, boosted by activities in the shares of Goldlink followed with a turnover of 38.2 million shares valued at N25.01 in 79 transactions.
Investors' appetite in equities rose Tuesday on the NSE, as the twin market indicators closed positive.
The All Share Index gained 0.13 per cent to close at 22,342.13 points, in contrast to a decline by 0.35 per cent the preceding day to close at 22,309.62 points.
Market capitalisation rose by N11 billion to close at N7.13 trillion, lower than the increase by N23 billion the preceding day to close at N71.11 trillion.
Julius Berger Plc led the gainers' table with N1.55 or 4.99 per cent to close at N32.61 per share, Ikeja Hotel Plc followed with five kobo or 4.72 per cent to close at N1.11 per share, while First City Monument Bank Plc gained 19 kobo or 4.42 per cent to close at N4.49 per share.
Transnational Corporation of Nigeria Plc rose by three kobo or 3.95 per cent to close at 79 kobo per share, while Honey Flour Mills Plc closed at N2.13 per share, up by eight kobo or N3.90 per share.
On the flip side, Oando Nigeria Plc dropped by 83 kobo or five per cent to close at N15.77 per share, while NASCON Plc dipped by 28 kobo or five per cent to close at N5.32 per share.
Union Bank of Nigeria Plc lost 19 kobo or 4.88 per cent to close at N3.70 per share, while Dangote Flour Mills Plc declined by 32 kobo or 4.86 per cent to close at N6.27 per share. Fidson Healthcare Plc depreciated by four kobo or 4.71 per cent to close at 81 kobo per share.
United Bank for Africa Plc led the banking subsector volume with 50.2 million shares worth N206m in 253 deals, followed by Guaranty Trust Bank Plc with 44.7 million shares valued at 692.4m in 404 deals.
Also, investors traded 29.9 million shares of First Bank Plc worth 321.9 million in 528 deals, while 10.7 million shares valued at N159.5m in 216 deals were exchanged in Zenith Bank Plc.
Transaction volume in equities dropped by 1.8 per cent, as a total of 329.4 million shares valued at N3.72bn in 3,947 deals were exchanged, compared to 191.6 million shares worth N2.28bn traded in 4,019 deals the preceding day.
Meanwhile, Dangote Flour Mills Plc turnover for the financial year ended December 31, 2011, dropped to N66.3bn, from N67.6bn recorded in the same period of 2010.
The company's profit after tax dipped by 75.1 per cent, from N2.72 billion in 2010 to N677.7m in 2011, while taxation stood at N281million in 2011, from N2.19 billion recorded in 2010.
Activities in equities closed on the downward note on Wednesday on the Nigerian Stock Exchange, as investors sold their holdings in some companies.
The All Share Index lost 0.13 per cent to close at 22,314.67 points, while market capitalisation depreciated by N9bn to close at N7.12trn.
Julius Berger Plc led the gainers' table with N1.63 or five per cent to close at N34.24 per share, followed by University Press Limited with 17 kobo or 4.75 per cent to close at N3.75 per share.
Further review showed that, Eterna Oil Plc gained 14 kobo or 4.55 per cent to close at N3.22 per share, while Continental Insurance Plc rose by three kobo or 4.11 per cent to close at 76 kobo per share. Transnational Incorporation of Nigeria Plc appreciated by three kobo or 3.80 per cent to close at 82 kobo per share.
On the flip side, Lafarge WAPCO Plc dipped by N2.22 or 4.98 per cent to close at N42.34 per share, while Oando Nigeria Plc dropped by 78 kobo or 4.95 per cent to close at N14.99 per share.
Dangote Flour Mills Plc shed 31 kobo or 4.94 per cent to close at N5.96 per share, while NASCON Plc declined by 26 kobo or 4.89 per cent to close at N5.06 per share. Union Bank of Nigeria Plc fell 17 kobo or 4.59 per cent to close at N3.53 per share.
Guaranty Trust Bank Plc led the banking subsector transaction volume with 69.6 million shares worth N1.10bn in 531 deals, followed by First Bank Plc with 51.2 million shares valued at N577.5m in 832 deals.
Also, investors traded 2.04 million shares of United Bank for Africa Plc worth N121.5m in 358 deals, while 22.1 million shares of Zenith Bank Plc valued at N329.3m were exchanged in 350 deals.
Transaction volume in equities declined by 1.7 per cent, as a total of 342.7 million shares worth N3.29bn were exchanged in 4,647 deals, compared to 329.4 million shares valued at N3.72bn traded in 3,947 deals the preceding day.
The impact of losses in 27 stocks on Thursday further dragged down the twin market indicator by N31billion even as equity trading sustained sliding profile in the volume of traded shares.
Specifically in the day, with sustained sliding profile in shares transaction coupled with price losses suffered by major highly capitalised companies, the market capitalisation slide further by 0.44 per cent.
A further review of trading in the day, despite assurance from the regulatory body, the All-share index fell by 96.23 basis points or 0.43 per cent from 22,314.67 recorded on Wednesday to 22,218.44, while market capitalisation slide by N31billion from N7.116 trillion to N7. 085trillion.
Further analysis of the day's trading showed that 27 stocks depreciated in price, led by NASCON Plc and Livestock with 4.94 and 4.81 per cent to close at N4.81 and N4.81 per share respectively followed by AG Leventis with 4.67 per cent to close at N1.02 per share.
Skye Bank and GT Assurance lost 4.46 and 4.29 per cent to close at N3.00 and N1.56 per share.
Ten companies appreciated in price, as Presco Plc and TRANSCORP emerged the day's highest price gainer with 4.99 and 4.88 per cent to close at N14.14 and N0.86 per share. UACN plc followed with 4.4.41 per cent to close at N35.50 per share.
Bagco and Oando Plc added 1.54 and 1.40 per cent to close at N1.98 and N15.20 per share.
With transactions exchanged in 3,708 deals, the Financial service subsector maintained its dominance in volume terms with 251.7 million shares worth N1.8 billion followed by the Consumers Goods subsector with 19.3 million units worth N772.8 million in four deals.
The Conglomerate subsector ranked third with 12.2 million units worth N30.8 million.
On the whole, investors exchanged 486.9 million units worth N2.86 billion in 2,049 deals.
The market closed Friday gaining marginally, with the twin market indicators of market capitalisation and All-Share Index rising by N5 billion and 13.93 point to close transaction in the week at N7.090 trillion and 22,232.36 basis point.
Gainers (Amount Gained)
Julius Berger N1.55
First City Monument Bank Plc 19kobo
Honey Flour Mills Plc 8kobo
Ikeja Hotel Plc 5 kobo
Transnational Corporation Plc 3kobo
Losers (Amount Lost)
Dangote Flour Mills 32kobo
NASCON Plc 28kobo
Union Bank 19kobo
Fidson Healthcare 4koboShare