Equity value nodding southward 
TRADING on the floor of the Nigerian Stock Exchange (NSE), last week, saw investors’ wealth, in value terms, at the beginning of the trading week nodding southward again, as investors continued to tread with caution in their investment drive in equities.

The seat back taken by most investors, especially the local ones, is said to be due to the persistent low level of confidence in the market even as majority of investors continue to offload their holdings once there is any little appreciation in prices of stocks.

Also due to the apathy investors still have towards share purchase, some segment of investors in the market are now doing what is regarded as portfolio realignment just as others are moving funds into the bond market owning to its zero risk value.

The President of the Chartered Institute of Stockbrokers (CIS), Mr Ariyo Olushekun, said notwithstanding the state of health of the equities market, he urged investors on the Nigerian capital market to take advantage of the low prices of shares for future gains.

Olushekun, who said the market was ripe for investing, noted that activities had begun to stabilise in the market, adding that this was the perfect opportunity for investors to stake their funds in the market.

“This is the right time for investors to take part in the equities market, with the prices of shares at their lowest. We at the CIS are confident that from now, the market will begin to stabilise and investors will begin to record significant appreciation on their investments,” he stated.

Judgement restating Dangote as NSE president
The penultimate Friday’s reinstatement of Alhaji Aliko Dangote as the President of the Nigerian Stock Exchange (NSE) seems to be the moral booster the market needs to jump start its growth trajectory.

Since last Tuesday, when the business mogul started to chair the council of the Exchange, activities in the securities market have been on the upward swing.   Some operators in the nation’s capital market said that the return of Dangote as the President of the Council of the Nigerian Stock Exchange would help reposition the near collapse of the stock market.

Dangote resumed Tuesday as President of NSE following an Appeal Court ruling in Lagos which called for his reinstatement as the President of the country’s bourse.

Dangote, who runs Nigeria’s biggest cement factory and known to be the richest man in Africa was elected the 17th President of the NSE in August 2009 following a unanimous decision by NSE council members. But shareholders of Forte Oil (formerly African Petroleum) petitioned the Federal High Court in Lagos to remove Dangote from the Presidency over an alleged manipulation of African Petroleum’s shares in collaboration with Nova Finance and Securities Limited.

The petition led to a court ruling in 2010 nullifying Dangote’s election.

According to the Managing Director, Crane Securities Limited, Mr Mike Okpara Eze, he said that with the man whose group of companies control an appreciable percentage in overall market capitalisation of the equity market, Dangote’s clout and wealth of experience in the market will help attract the needed liquidity that will help restore market confidence.

Transactions last week
 The All Share Index on Monday declined by 0.76 per cent to close at 21,028.39 points, compared to the decrease by 0.33 per cent recorded on Friday to close at 21,184.58 points.

Market capitalisation shed N50bn to close at N6.71trn, higher than the increase by N22bn recorded on Friday to close at N6.76trillion.

The banking index lost 0.01 per cent to close at 298.74 points, while the insurance index depreciated by 0.17 per cent to close at 118.62 points. But the consumer index recorded marginal gain of 0.71 per cent to close at 298.74 points.

PZ Cussons Plc led the gainers’s table with N1.23 or five per cent to close at N25.85 per share, followed by Union Bank of Nigeria Plc with 17 kobo or 4.90 per cent to close at N3.64 per share.

Paint Manufacturing Company Plc rose by seven kobo or 4.86 per cent to close at N1.51 per share, while Eterna Oil Plc added 12 kobo or 4.80 per cent to close at N2.62 per share. Red Star Express Plc appreciated by 14 kobo or 4.78 per cent to close at N3.07 per share.

On the flip side, Law Union Plc dropped by three kobo or five per cent to close at 57 kobo per share, while Conoil Plc dipped by N1.08 or 4.99 per cent to close at N20.58 per share.

Transcorp Plc depreciated by seven kobo or 4.93 per cent to close at N1.35 per share, while Goldlink Insurance Plc declined by three kobo or 4.92 per cent to close at 58 kobo per share. Avon Crown Plc fell by 18 kobo or 4.75 per cent to close at N3.61 per share.

Equity transactions at the close of trading on Tuesday returned to the upward swing, as cautious trading in the day saw investors’ wealth rising marginally by N18 billion. Activities at the stock market have been on the downward since last Wednesday when investors engaged massive sales and profit taking on their investment.

Particularly, at the close of trading in the day, 23 stocks recorded price appreciation, as against 25 that constituted the losers’s table.

The twin market indicators¬- the All-Share index which measures the performance of quoted companies rose by 53.72 points or 0.25 per cent from 21,028.39 recorded on Monday to 21,082.11, while market capitalisation increased by N18 billion or 0.25 per cent from N6.712 trillion to N6.082.11 trillion.

Further analysis of trading showed Berger Paint Plc top the day’s gainers’s table with five per cent to close at N9.45 per share,  while Cement Company of Northern Nigeria Plc followed with five per cent, to close at N5.67 per share. PZ Cusson, Eternoil Plc and Union Bank of Nigeria featured with 4.99, 4.96 and 4.95 per cent to close at N27.14, N2.75 and N3.82 per share.

Investment in the equity sector on the NSE ended on Wednesday with significant increase of 1.98 per cent increase in the primary performance indicators.

Particularly, the value of listed equities rose by N136 billion from N6.730 trillion to close at N6.866 trillion, while the All share index jumped by 428.6 basis points to close at 21,510.71 points from 21, 082.11 points.

A review of activities in the day showed that 31 quoted companies recorded price increase as against 12 that recorded price depreciation during the day.

Cutix Nigeria Plc and Fortis MFB led the gainers’s pack with five per cent each to close at N1.26 and N5.25. Pressco Nig. Plc garnered 4.98 per cent to close at N14.26; CCNN gained 4.94 per cent to close at N5.95 per share, while Paint Company that was the last on the top five gainers’s table added 4.83 to close at N1.52 per share.

On the other hand, Gold Insurance and John Holt Plc led the losers’s pack with five per cent each to close at N0.57 and N5.32; AvonCrown followed with loss of 4.96 per cent to close at N3.26.   Jos Breweries Plc and DN Meryer ranked fourth on top losers’s pack, dropping by 4.84 per cent to close the day at N1.77 and N0.59 per share.

In all, investors bought 165.11 million units of shares worth N1.19 billion which changed hands in 3,690 deals.

Trading in equities closed on a bearish note on the NSE on Thursday, as some investors sold their holdings to make profit from the gains recorded the preceding days. The All-Share Index dropped by 0.76 per cent to close at 21,348.11 points, compared to the increase by 2.03 per cent recorded the preceding day to close at 21,510.70 points. Market capitalisation dipped by N51.9bn to close at N6.81trn, lower than the increase by N136.8bn recorded the preceding day to close at N6.86trn. Eterna Oil Plc led the gainers’ table with 14 kobo or 4.86 per cent to close at N3.02 per share, followed by Tourism Company Plc with 21 kobo or 4.86 per cent to close at N4.53 per share.

Cutix Plc gained six kobo or 4.76 per cent to close at N1.32 per share, while Custodian Insurance Plc rose by seven kobo or 4.67 per cent to close at N1.57 per share. Paint Manufacturing Company Plc added seven kobo or 4.61 per cent to close at N1.59 per share. On the flip side, UAC Property Plc lost 50 kobo or 4.97 per cent to close at N9.57 per share, while WAPIC Insurance Plc dipped by four kobo or 4.94 per cent to close at 77 kobo per share. Transcorp Plc declined by six kobo or 4.88 per cent to close at N1.17 per share, while Guaranty Trust Bank Plc shed 70 kobo or 4.46 per cent to close at N15.00 per share. Access Bank Plc depreciated by 28 kobo or 4.42 per cent to close at N6.05 per share. Transaction volume in equities rose by 45 per cent, as a total of 239.78 million shares worth N1.40bn were exchanged in 3,793 deals, compared to 165.11 million shares valued at N1.18bn traded in 3,692 deals the preceding day.

Trading on Friday saw the bull suppress the bear that greeted the first trading day of the week with a sustained resilience and closed the week on a positive trend. Meanwhile, a turnover of 930.68 million shares worth N6.33 billion in 17,744 deals were recorded last week, in contrast to a total of 2.76 billion shares valued at N7.99 billion which exchanged hand last week in 16,961 deals. Also traded during the week were 1,922 units of NewGold Exchange Traded Funds (ETFs) valued at N4.92 million exchanged in 6 deals. There were no transactions in the Federal Government development stocks, State/Local Government Bonds and Corporate Bonds/Debentures Stocks sectors. At the close of trading activities for the week, the Financial Services sector of the equities market was the most active with 658.92 million shares valued at N3.75 billion traded in 10,381 deals. This was followed by Services Sector with 55.76 million shares valued at N145.17 million traded in 547 deals. The Banking sub-sector was the most active during the week with 493.17 million shares worth N3.64 billion exchanged by investors in 9,880 deals. The volume in the sub-sector was driven by Diamond Bank Plc, Zenith Bank and First Bank Plc. Trading in the shares of the three companies accounted for 228.65 million shares, representing 46.36 per cent, 34.70 per cent and 24.57 per cent of the turnover recorded by the sector, subsector and total equities turnover for the week, respectively.