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Cautious trading takes over activities at NSE - As transaction value rises by 2.38%
Investment climate stable
THE investment climate presently at the Nigerian Stock Exchange (NSE) appears to be relatively stable as the forces of demand and supply which are the guiding principle on transaction in the equities market seem to be directing prices of equities on a daily basis.
Also, investors in the market appear to be cautious with the way they now go about their investment decision on the listed companies, just as they do not want to be caught unawares again.
It is germane to note that, the penultimate coming of the appointment of an acting director-general at SEC, in the person of Mr Ibrahim Bolaji Bello, and the coming back of Alhaji Aliko Dangote to the Exchange as president of the council are being viewed by market operators as a blessing in disguise for investors who have waited for years to see a new dawn in the securities market.
Investors' low appetite for stock
The cautious investment in equities on the NSE, coupled with the sell pressure on most stocks previous week, had earlier resulted in the margin gains of the prices of stocks, especially the blue-chips, even as market performance indicators recorded positive trend in the cumulative trading figures in the market.
Specifically in the week, the twin performance indicators, the market capitalisation and All-Share Index appreciated due to the rise in the prices of blue chips and the mid cap stocks in anticipation of a plausible financial result at the close of the half year.
Investors cautioned on pressure to sell
Stock's experts said investors ought to put in perspective what the workings of the stock market is all about, which is investing for a long time and more as investment in shares needs a lot of perseverance.
Expected increase in profit taking
While the market seems to be gaining investors' confidence by the day, value of equities may be taking a new curve of going southward due to profit taking which may last till the end of the year and probably extend to January next year.
Unit holders in shares are usually expected at this period of the year between July and September to take profit on their investment, even as the market is further expected to achieve more stability towards the end of the third quarter of the financial year.
Although transactions in the market will not be all gains all through, permutation by market analyst suggested that most stocks will experience price depreciation as a result of glut that may hit the market within this period.
Meanwhile, as sign post, the market analyst enjoined investors to remain steadfast in their investment drive as the market has gone past its trying days, and coupled with the fact that most stocks prices have bottomed out, as the only option left for the market is to return as a safe haven for investment profitability.
Transactions in the week
Major equity transactions, last Monday, took a different curve, tumbling in prices, even as the twin market indicators on the NSE dropped by 0.13 per cent or N9 billion.
The depreciation in activities in the market is said to be occasioned by massive profit taking by investors who are catching on capital appreciation in the shares of listed companies.
A review of the day's transaction showed that highly capitalised stocks comprising of 15 companies recorded price depreciation while 22 others ironically appreciated in price.
Particularly at the close of transactions, AG Leventis Plc topped the day's losers' table with 4kobo to close at N0.78, while IPWA Plc followed with 4 kobo, to close at N0.79 per share. TRANSCORP Plc, Port Paint and NASCON Plc also lost 5 kobo, 11 kobo and 20 kobo to close at N1.03, N2.27 and N4.28 per share.
On the other hand, Oando Plc emerged the day's highest price gainers with 67 kobo to close at N14.11 per share. Union Bank of Nigeria Plc followed, adding 18 kobo, to close at N3.91 per share. RT Briscoe Plc, Paint Company Plc and Honeywell Plc added 10 kobo, 9 kobo and 9 kobo to close at N2.21, N2.00 and N2.10 per share.
Consequently, market capitalisation dropped by N9 billion or 0.13 per cent, from N6.895 trillion recorded on Friday to N6.886 trillion while All-Share Index dipped by 27.9 points or 0.4 per cent, from 21,599.57 to 21,571.67
With transactions exchanged in 2,009 deals, the banking sub-sector maintained its dominance in volume terms with 130 million shares, worth N868.9 million. The insurance sub-sector trailed with 22.9 million units, worth N16.6 million, while the conglomerate sub-sector ranked third with 20 million units, worth N34.5 million in 118 deals.
In all, investors exchanged 209.8 million shares, worth N1.634 billion in 3,497 deals.
Tuesday's gains by blue chip companies stepped up equity value trading as transactions in the day witnessed 27 listed gainers stocks, impacting 0.54 per cent increase on the market capitalisation.
Activities in the stock market have been on the downward beat since the close of business previous week.
At the close of trading in the day, 27 stocks recorded price appreciation, while 21 constituted the losers' table.
The market twin market indicators, the All-Share Index and market capitalisation rose by 112.2 points or 0.54 per cent and N38 billion to close at 21,690.54 points and N6.924 trillion from the previous 21,571.67 points and N6.924 trillion respectively.
Further analysis of the day's trading showed that Paint Company Plc topped the day's gainers' table with 10 kobo to close at N2.10.
7up Bottling Company Plc, one of the most highly capitalised stocks at the exchange went up by N1.91 to close at N38.31, followed by Livestock with 5 kobo increase to close at N1.08 per share. UBA Plc and Longman Plc that were the last on top five gainers' table rose 18 kobo and 11 kobo to close at N3.89 and N2.41 per share respectively.
However, Eterna Plc led others on the losers' table with 15 kobo to close at N2.85 per share. AVONCROWN followed, decreasing 14 kobo to close at N2.67 per share.
TRANSCOROP Nigeria Plc, Honey Flour Mill Plc and Wapic International Plc that ranked among the top five losers dropped 5 kobo, 10 kobo, 4 kobo to close at N0.98, N2.00, and N0.80 per share in that order.
On the activity chart, the banking sub-sector dominated in volume terms with 111.2 million shares worth N857.2 billion in 1,943 deals. The insurance sub-sector followed with 30.1 million units, worth N17.2 million in 250 deals.
The ICT sub-sector ranked third with 14 million units, worth N18.5 million in 14 deals.
In all, investors exchanged 205.9 million shares, worth N1.59 billion in 3,792 deals.
Investors on Wednesday further heaved a sigh of relief as the market again closed in the positive territory with the twin measurement indicators- market capitalisation and All share index- rising marginally by 1.09 per cent.
The further reversal of prices in the day resulted in N77 billion increases in the market capitalisation from N6.924 trillion recorded on Tuesday to N7.001 trillion.
The All Share index also rose by 240.4 basis points to close at 21,930.90 points from 21,690.54 points.
Thirty-six stocks recorded price appreciation, while 21 companies emerged losers in the day's trading.
activities at NSE - As transaction value rises by 2.38%