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Profit taking, share offloading dominate transactions at NSE
TRANSACTIONS trend in the equities market, last week, saw investors engaging more in profit taking as against increase in the purchase of shares that typified trading activities in the securities market in the last couple of months.
The present climate in the market was further tinted with high volume in the sales of shares, thus indicating that the market has reverted once again to the position of a seller market compared to the bull period in the market.
The financial services subsector seems to be worst hit, considering its shareholding structure, wherein on a daily basis activities in the subsector controls about 55 to 60 per cent of daily transactions in the market.
Another sub sector which ordinarily ought not to have fallen into the market drawback is the Petroleum marketing subsector and the Construction and Real Estate subsector. Taking another closer look at the market recently, the Chief Executive Officer Financial Derivatives, Mr Bismarck Rewane, foresees an improvement in investors' confidence in the marke, though he noted the possibility of profit-taking activity by speculators in the market.
Low appetite for stocks
Cautious investment in equities on the NSE, coupled with the sell pressure on most stocks in the recent time, may have contributed immensely to the dwindling in the prices of stocks, especially the blue-chips, even as market performance indicators recorded negative trend in the cumulative trading figures in the market.
Specifically, in the previous week, the twin performance indicators, the market capitalisation and All-Share Index appreciated due to the rise in the prices of blue chips that used to direct indices in the market.
Trading in the week, after a three-day straight loss, further put to question market watchers' permutation that there is still potentials in most of the stocks even as they still enjoin investors to engage in long term investment not minding the profit takings and portfolio restructuring by the investors that tend to slow activities down sometimes.
NSE's moves to reposition the market
With unwavering commitment to deepen the market, the Chief Executive Officer of the NSE, Mr Oscar Onyema, has said that The Exchange had identified integrity, durable wealth creation and business development as veritable tools to grow the market.
To this end, he said the exchange would soon roll out new products; Options and Derivatives that will be traded on The Exchange, beginning from 2012.
Besides, Onyema noted that the management of The Exchange had co-opted ten new members to bolster its oversight functions, adding that each inducted council member had subscribed to the code of conduct for council members.
He listed the five asset class options to include exchange traded bonds, equity options, index options and derivatives and financial features.
Transactions in the week
Activities on the floor of the Nigerian stock market on Monday closed in the negative trajectory, as the bear maintained dominance on the most blue chip companies for the first trading day of the week.
Specifically, the All Share Index lost 0.4 per cent or 104.5 basis points to close at 23,418.66 index points in contrast to 23,523.16 recorded on Friday, while market capitalisation equally depreciated 0.4 per cent or N34 billion to close at N7.453 trillion as against 7.487 trillion recorded at the weekend.
Continental Insurance led the gainers' table with 4.92 per cent to close at 64 kobo per share, followed by InterBrew with 4.89 per cent to close at N6.22 per share.
On the flip side, Air Service Plc dipped by 4.97 per cent to close at N1.72 per share, while Berger Paints Nigeria Plc dropped by 4.91 per cent to close at N6.97 per share.
The banking sub-sector of the financial services sector was the most active during the day (measured by turnover volume), with 142.2 million shares worth N1.4 billion exchanged by investors in 2,050 deals.
Volume in the banking sector was largely driven by activities in the shares of Zenith Bank, GTB and Fidelity Bank Plc.
Conglomerates sub-sector, boosted by activities in the shares of Transcorp Plc, followed with 14.4 million shares valued at N20.3 million in 160 deals.
On the whole, investors staked a total turnover of 188.03 million shares worth N1.7 billion in 3,662 deals.
Activities on the Nigerian Stock Exchange (NSE) closed Tuesday on a negative note as against the positive outlook much expected by investors in the equities market.
Specifically, the market capitalisation of 187 first-tier equities depreciated by N8 billion to close at N7.445 trillion as against appreciation by N7.453 billion recorded in preceding session.
Further review of trading in the day showed that, at the close of trading session, the NSE All-Share Index dipped by 0.10 per cent to close at 23,391.79 as against an upbeat of 23,418.66 basis point recorded in the previous session.
Three out of five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of bluechips continued on the downtrend by 0.19 per cent; NSE Consumers Goods closed with 1.03 per cent loss, while NSE Oil & Gas closed flat with 0.59 per cent loss. NSE banking recorded 0.52 per cent rise, while NSE Insurance recorded a marginal rise.
The financial services sector led the market transaction volume with 222.4 million units valued at N2.22 billion exchanged in 2,439 deals.
The volume recorded in the sector was majorly driven by transactions in the shares of First Bank Plc, Zenith Bank Plc and Diamond Bank Plc respectively.
Total volume of transactions in the day saw investors swapping 317.2 million ordinary shares worth N2.8 billion in 4,388 deals.
The number of gainers at the close of trading session closed higher at 23 as against 21 recorded on the loser chart.
On the gainer's chart, Eterna Plc led with 4.95 per cent to close at N2.33, followed by UPL Plc with 4.77 per cent to close at N4.39 and HIS Plc with 4.69 per cent to close at N2.23.
On the other hand, Royalex Plc led with 5.00 per cent loss to close at N0.57, Unilever Plc lost with 4.94 per cent to close at N34.65 and Cutix Plc with 4.60 per cent to close at N1.66.
Investment value in the equities sector of the Nigerian Stock Exchange fell further on Wednesday when the twin market indicators on the stock market for the third day running continued on the downward trend as performance index dipped by 0.96 per cent.
Specifically, the market capitalisation of listed equities depleted by N72 billion to close at N7.373 trillion down from N7.445 trillion recorded on Tuesday, representing 0.96 per cent depreciation from the previous activities.
A further review of transactions in the day showed that the All Share Index fell by 225.21 basis points to close at 23,166.58 points from the previous 23,391.79 points.
Intercontinental Wapic Insurance Plc which topped the losers' list declined by 5.00 per cent to close at N0.57 per share, followed by Abbey Building Plc with 4.86 per cent decrease to close at N1.37 per share.
Cement Company of Northern Nigeria, Flourmills Nig. and Continental Insurance that were the last top three on the losers' table depreciated by 4.78, 4.76 and 4.48 per cent to close at N4.18, N50.00 and N0.64 per share respectively.
On the other hand, Berger Plc led on the gainers' side with 4.88 per cent to close at N7.31, followed by Eterna Plc with 4.72 increase to close at N2.44 per share. RT Briscoe gained 4.52 per cent to close at N1.62 per share; SMURFIT Plc rose by 4.24 per cent to close at N1.23, while UTC Plc chalked 4.11 per cent to close at N0.76 among other gainers.
Further analysis shows that the banking sub-sector buoyed by activities on the shares of Guaranty Trust Bank, Diamond Bank and First Bank of Nigeria dominated others on sectoral chart with 148.3 million units valued at N1.2 billion exchanged in 2,249 deals.
The Insurance sub-sector, propelled by transactions done on the shares of Mutual Benefit Assurance Plc closed as the second most traded in the day with 9.8 million units worth N5.4 million in 82 deals, while the Consumers Goods sub-sector led by Dangote Sugar Refinery and Nigerian Breweries ranked third, trading 8.9 million shares worth N356.4 million exchanged in 750 deals.
In all, investors bought 190.4 million shares worth N1.59 billion exchanged in 3,923 deals.
Investors' appetite on blue chips stocks halted three days bearish trend on the NSE on Thursday, as the rally recorded mostly in consumer goods sector lifted the benchmark indices.
The All Share Index gained 0.5 per cent to close at 23,178.87 points, as against the decline recorded the preceding day to close at 23,166.58 points.
Market capitalisation appreciated by N4bn to close at N7.38 trillion, in contrast to the dip recorded the preceding day to close at N7.37 trillion.
The consumer goods index gained 0.5 per cent to close at 1,935.66 points, followed by Lotus Islamic index with 0.49 per cent to close at 1,352.50 points.
The insurance index appreciated by 0.37 per cent to close at 124.36 points, while the banking index gained 0.32 per cent to close at 356.63 points.
The NSE-30 index rose by 0.09 per cent to close at 1,083.05 points, while the oil and gas index increased by 0.8 per cent to close at 1,352.50 points.
Evans Medical Plc led the gainers' table with five kobo or five per cent to close at N1.05 per share, followed by May and Baker Plc with eight kobo or 4.94 per cent to close at N1.70 per share.
On the flip side, Arbico Nigeria Plc dropped by 86 kobo or 4.97 per cent to close at N16.43 per share, while Airservice Plc dipped by eight kobo or 4.65 per cent to close at N1.64 per share.
The market further close on the upbeat on Friday, with the twin market indicators, the market capitalisation and the All-Share Index rising by 0.26 per cent to close the week at N7.396 trillion and 23,239.03 basis points.Share