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Stock market still going through recovery -As Unilever, PZ Cussons, top gainers’ table
Equity trade still low
EQUITY trade on the Nigerian Stock Exchange (NSE) is still going through a lull in activities as most quoted companies continue to take stocks of their volume trade in a second quarter of the year which can still be termed turbulent.
Except for the financial services subsector, majority of listed companies stocks have shown a negative balance sheet for the second quarter compared to the plausible outing they had in the same correspondent year in 2011.
It will be recalled that due to the May Day celebration in the week, the NSE's trading floor was opened for business activities for four days.
Provision of energy in running operations in most of the companies is yet to improve, especially those in the manufacturing sub-sector wherein operational cost of energy absorbs about 25-30 per cent of their earnings, thus reducing their profit after tax to the extent that the strategy presently is just to keep the companies alive pending when infrastructure improve in the country.
Aside investors' confidence which is still at a disadvantage position regarding purchase of equities at this period of the year, another contributory factor to the dip in transaction in the market is the fact that it is still a seller market where supply of shares still outweighs demand.
Most prices of equities as it is today on the Exchange can be described as penny stocks when compared to their cover price prior to the period of financial meltdown in equities between 2008 and 2009.
Investment in penny stocks with strong fundamentals and seeking corporate expert's advice from dealing members (stockbrokers) brings increased return on investment more than those shares which prices are already at the roof top.
Increase in profit taking persists
While the market seems to be gaining investors' confidence by the day, value of equities continues to go southward due to profit taking and this may last till the end of the mid-year and probably extend to the third quarter.
Unit holders in shares are usually expected at this period of the year -between January and May- due to change in the financial year end of most companies which tilts towards profit taking on their investment to meet demands.
Investors still expressing worry over capital market probe
Investors are still expressing worries over the ongoing probe of the capital market by the House of Representatives Ad Hoc Committee on Capital Market and Other Investment, wherein some former officers of the exchange and market apex body, SEC, are being probed.
Also, most investors in the market, aside their apprehension on the profit taking issue which is currently depressing the market value, indicators are becoming more disturbing as fillers from likely outcome of the probe panel may not be favourable to the stock market.
Nigerian Tribune investors guide findings, last week, shows that, both the institutional and the small scale investors in securities became more troubled that close to two months now, the exchange and every stakeholder are in the wood about what the report from the probe panel would look like.
Transactions last week
Activities on the floor of the NSE on Monday opened the week on a negative trajectory as Japaul Plc and Longman Plc led 19 losers to depreciate the market performance indices by 0.2 per cent.
At the close of trading in the day, Japaul and Longman led the percentage losers' chart with five per cent each to close 57 kobo and N2.66, while Enterna Oil followed with a loss of 4.97 to close at N3.06.
On the other hand, Oando Plc led the other 16 gainers with 4.95 per cent to close at N16.75. UBN followed with a gain of 4.79 per cent to close at N3.72,while Vitafoam added 4.55 per cent to close at N3.45 kobo.
A review of trading in the day showed that the All-share index dropped by 52.34 basis points or 0.2 per cent from 22,232.36 recorded previous Friday to 22,180.02, while market capitalisation dropped by N17 billion or 0.2 per cent from N7,090 trillion to N7,073 trillion.
Further analysis of the day's transactions showed that the Banking subsector, buoyed by the activities in shares of GTB and UBA, was the most active in terms of volume with a turnover of 121.5 million shares worth N978.7 million in 2,127 deals.
Computer based system of ICT subsector activated by the activities in the shares of Courtville Business Solution followed with a turnover of 33.8 million shares worth N16.9 million in 14 deals.
On the whole, investors exchanged 215.7 million shares worth N1.5 billion in 3,648 deals.
Trading activities on the floor of the NSE on Wednesday declined further by N3billion, as heavy losses in Okomu Oil Plc and Flourmills of Nigeria Plc led other losers to depreciate the market performance indices by 0.04 per cent.
It would be recalled that, Tuesday was declared a public holiday to celebrate the May Day.
At the close of trading on Wednesday, Okomu Oil and Flourmills of Nigeria led the percentage losers' chart with 0.87 and 0.61 per cent each to close N30.00 kobo and N59.50 kobo, while NASCON Plc and FCMB Bank Plc followed with a loss of 0.24 per cent and 0.20 per cent to close at N4.65 kobo and N3.97 Kobo respectively.
On the other hand, Unilever Nigeria Plc led the gainers' table with 0.70 per cent to close at N29.00 kobo. Presco Plc followed with a gain of 0.65 per cent to close at N14.79, while Cadbury, Ashakacem and Dangote Flourmills added 0.55 per cent, 0.50 per cent and 0.30 per cent to close at N16.00 kobo, N10.12 kobo and N6.30 kobo respectively.
A further review of trading in the day showed that the All-share index dropped by 9.07 basis points or 0.04 per cent from 22,180.02 recorded on Monday to 22,170.95 while market capitalisation dropped by N3 billion or 0.04 per cent from N7.073 trillion to N7.070 trillion.
Further analysis of Wednesday's transactions showed that the Banking sector, buoyed by the activities in shares of GTB and First Bank, was the most active in terms of volume with a turnover of 84.1 million and 37.8 million ordinary shares worth N1.29 billion in 499 deals and N434 million done in 670 deals respectively.
Consumers Goods subsector activated by the activities in the shares of Dangote Sugar Refinery followed with a turnover of 25.9 million shares worth N101.2 million in 54 deals.
On the whole, investors exchanged 363.1 million shares worth N3.252 billion in 3,613 deals.
Trading in equities continued on a bearish note on the NSE on Thursday, as the twin market indicators went southwards.
Analysts at Meristem Securities Limited, an investment firm, attributed the losing streak to investors who are cashing in on their gains.
“The equities market continued its losing streak for the third time last week. This has brought the index to its one-month low,” the firm said in a note to investors in the day.
The All Share Index dipped by 0.5 per cent to close at 22,066.40 points, compared to the decline by 0.05 per cent recorded the preceding day to close at 22,170.96 points.
Market capitalisation shed N33 billion to close at N7.03 trillion higher than N3 billion recorded the preceding day to close at N7.07 trillion.
Cement Company of Northern Nigeria Plc led the gainers' table with 26 kobo or 4.91 per cent to close at N5.56 per share, followed by Fidson Healthcare Plc with four kobo or 4.82 per cent to close at 87 kobo per share.
May and Baker Plc gained six kobo or 4.65 per cent to close at N1.35 per share, while GR Assure Plc rose by seven kobo or 4.49 per cent to close at N1.63 per share.
On the flip side, National Salt Company of Nigeria Plc lost 23 kobo or 4.95 per cent to close at N4.42 per share, while Vitafoam Plc dipped by 17 kobo or 4.93 per cent to close at N3.28 per share.
Eternal Oil Plc shed 15 kobo or 4.90 per cent to close at N2.91 per share, while Red Star Express Plc dropped by 15 kobo or 4.89 per cent to close at N2.92 per share.
A total of 328.9 million shares valued at N2.25 billion were exchanged in 3,664 deals, compared to 363.14 million shares worth N3.25 billion traded in 3,612 deals the preceding day.
Trading on the floor of the exchange on Friday further depleted with the twin market indicators of market capitalisation and the All-Share Index depleting by N33 billion and 102.53 basis points to close the week at N7.037 trillion and 21,963.87 respectively.Share