Investors in equities on the Nigerian Stock Exchange (NSE) are becoming worried about their investments, following the huge fall in the prices of virtually all the blue chip stocks in the market, last week.

Also, the glut of stocks of insurance companies in the market was particularly of a major concern to investors last week. They felt that by now  owners of the insurance firms should have done restructuring, so, as to help shrink the size of  stocks and boost the unit price

It will be recalled that  about 177.47 billion of insurance stocks were in existence after the consolidation programme in the banking industry, and this has made prices in the insurance sub-sector to suffer low value rating, thereby creating  crisis in the stock market. This is also coupled with the apathy people are showing towards insurance policy.

Value indicators in the insurance sub-sector had, in the first quarter of the year, suffered a decline of 14.5 per cent.

Trading in the market, specifically in the shares of companies across all the sub-sectors, last week, showed that rather than increasing, investors’ confidence has plummeted to its lowest ebb causing all the major indicators to suffer huge value dip

Of particular worry to investors, was the hurried exit of some institutional investors who, ordinarily, always help to cement the confidence of local investors’ and the liquidity squeeze in the market which has narrowed the volume of transaction  by operators in the market.

The setting up of Asset Management Company (AMC) by the Federal Government aimed at absorbing the toxic waste of banks, which is yet take off and the current directives of the Central Bank of Nigeria (CBN) on banks not to advance facilities to margin fund operators is definitely having its toll on the market.

The exit of the institutional investors in the stock market, according to analysts, was linked to activities in the global stock market, especially in the  European countries where value in stocks is also going northward as well as the fear of the coming on stream of AMC and the effect it could have on those involved in the margin facility.

A review of activities last week showed that Flourmills Nigeria Plc, MRS Oil Nigeria Plc, Guinness Nigeria Plc , May & Baker and Presco led the pack of the top gainers. The stocks rose by 7.35, 4.99, 1.31, 21.29 and 5.57 per cent while Lafarge Wapco Cement led the losers’ chart with 7.22 per cent. Ashaka Cement, Benue Cement Company Plc, Cadbury Plc, Oando Plc followed closely with 16.76, 3.76, 8.36 and 2.83 per cent.

The market opened on Monday with the bears reverberating on the equity sector despite the high hope of the market closing transaction on a plausible note previous week. Losses recorded by some highly capitalised stocks resulted in a further decline in market capitalisation by N88 billion or 1.38 per cent.

All-Share Index dipped by 363.64 points or 1.39 per cent from 26,153.47 recorded on Friday to 25,789.83, while market capitalisation decreased by N88 billion or 1.38 per cent from N6, 652 trillion to N6, 703 trillion.

The banking sub-sector, however, remained the investors’ toast with 193.0 million shares, worth N1.7 billion while the insurance sub-sector followed with 25.4 million units valued at N36.7million in 281 deals. The Agriculture/Agro-Allied sub sector trailed with 12.6 million units worth N26.8 million.

Trading in the shares of Skye Bank Plc enhanced activities in the banking sub sector with 91.4 million shares worth N742.9 million followed by FirstBank Plc with 20.4 million units valued at N288.8 million.

Fifty-six stocks depreciated while 14 stocks appreciated. Cadbury Nigeria Plc fell by 4.44 per cent. NB Plc, Unilever Plc, NAHCO and Ashaka  Cement Plc all decreased by the 1.45, 3.2, 4.97 and 2.57 while Flourmills Nigeria recorded a rise of 4.99 per cent. Cement Company of Northern Nigeria (CCNN), Presco Nigeria, Union Bank of Nigeria Plc and Custodian Alliance increased by 4.87, 4.91, 4.95 and 4.86 per cent each.

The equities market’s consistent downward journey continued on Tuesday as All-Share Index recorded another major decline when compared with the preceding day’s figures.

Transaction volume and value for the day recorded further decrease above the previous days’ figures. Banking sector recorded the highest volume traded with 116.7 million units valued at N1.03 billion exchanged in 3,397 deals. Volume traded in the sector was boosted by the transactions in the shares of FirstBank of Nigeria Plc, Guaranty Trust Bank Plc and United Bank of Nigeria Plc.

The decline recorded in the market was evident in almost all the sectors in varying degrees. Mostly hit among the sectors on the NSE were construction and Food/Beverages & Tobacco sub-sectors as shown by the price declines recorded in their share prices.

At the close of trading session, the All-Share Index declined by -1.5 per cent to close at 25,398.35. Market capitalisation also dipped by N96 billion to close at N6.177.

Wednesday also recorded another decrease in investors’ wealth in the market as performance indicators depreciated yet again by N29 billion or 0.47 per cent whiles the All Share Index fell by 120.35 basis points from 25,398.35 points to 25,278.00 points.

Forty-six stocks depreciated compared to 15 stocks that appreciated.

7up bottling, Wapco Lafarge Cement, Benue Cement Company, Dangote Sugar and UAC-Properties declined by 4.76, 5.0, 3.03, 4.75 and 3.89 while United Bank for Africa, Julius Berger, May & Baker, Union Bank of Nigeria and Chemical and Allied Products fell by 4.95, 0.82, 4.89, 4.36 and 0.67 per cent respectfully.

Both performance indicators further dipped by 0.24 per cent on Thursday as the market capitalisation fell by N15 billion and the index dropped by 63.8 points. A total of 348.8 million shares worth N2.4 billion were traded in 7,473 deals.

A review of price movement in the day showed that 34 stocks depreciated in value while 33 stocks appreciated.  African Petroleum Plc, CCNN, PZ Cusson, AshakaCement and Lafarge Wapco Cement depreciated by 4.27, 4.95, 3.12, 5 and 1.8 per cent while Dangote Sugar Plc, ETI, Nigerian Breweries Plc, Cadbury and Oando Plc rose 4.80, 4.96, 0.81, 1.82 and 0.61 per cent.

However, the market closed the week on Friday on the upbeat as the market capitalisation rose by N50 billion while the index added 208.61 points to close the week at a high of N6.183 trillion and 25,422.79 points respectively.

Meanwhile, a turnover of 231.73 million units worth N261,254.7 million in 2,330 deals was recorded last week, in contrast to a total of 173.5 million units valued at N198,662.13 million exchanged in 1,779 deals during the week ended Thursday, June 3, 2010. The most active bond (measured by turnover volume) was the 7th FGN Bond 2013 Series 1 with a traded volume of 38.1 million units valued at N38,019.05 million in 381 deals. This was followed by the 6th FGN Bond 2029 Series 34 with a traded volume of 29.7 million units valued at N39, 949.7 million in 228 deals. Twenty-four (24) of the available thirty-nine (39) FGN Bonds were traded during the week, compared with twenty (20) in the preceding week.