MIXED reactions by stakeholders and investors on the Nigerian Stock Market (NSE) continued to trail transactions in the market, and despite reduction in the volume of shares, the market closed at the end of  the week on a positive note.

Investors  recorded gains for  three days and  losses on Wednesday and Thursday. The NSE All-Share Index (ASI) appreciated by 237.34 points or 0.96 per cent to close on Friday at 24,846.64 while the market capitalisation closed higher at N6.08 trillion.

Investment decisions in the securities market  previously were  trailed by comments by the Central Bank of Nigeria (CBN), that weak banks would soon be sold, commencement of operation by Asset Management Company scheme in the nearest future and liquidity squeeze in the market.

During the week under review,  the market indicators recorded steady rise while  apathy to investment still persists. Dealing members (stockbrokers) whom investors  relied upon for guide were in a state of confusion more confused than ever about the happenings in the market.

The dealing members would stop at nothing to berate any person or organisation whose action or inaction contributed to the misfortune in the market.

Only last week, at one of their closing trading sessions, the brokers, led by one of their doyen, issued a warning to the CBN Governor, Malam Sanusi Lamido Sanusi, to guide his utterances which, in recent times, has become inimical to the growth and development of the stock market.

And unlike other exchanges around the globe, prayer sessions now hold in the market, and according to the stockbrokers, this  would help to turn around the fortune of the securities market which has greatly been battered.

Further review of activities in the week show that profit-taking was prevalent in the stock market, thus resulting in a slow-down in market tempo.

There was also anxiety during the week over who becomes the successor to the current  Director General of NSE, Professor Ndi Okereke-Onyiuke.

The apex market regulator, the Securities and Exchange Commission (SEC), had directed that a new Director General of the NSE must be in place before June ending, but which was again shifted to August.

Transaction volume closed the week at 1.5 billion shares worth N9.81 billion in 29,133 in contrast to a total of 1.6 billion shares valued at N13.7 billion exchanged previous week in 29,3544 deals. As usual, banking sector emerged the most traded sector with 625.95 million units valued at N5 billion exchanged in 15,534 deals. Transactions in the shares of Zenith Bank Plc and Afribank Plc largely boosted the volume traded in the sector.

The decline recorded in the market cuts across almost all the sectors with the exception of the banking sector which staged a rebound.

A review of transactions in the market last week showed that Flourmills Nigeria Plc and Nigeria Breweries Plc topped the week’s gainers’ table, and were  followed closely by Julius Berger Plc, Larfage Wapco Cement Plc and Chemical and Allied Products Plc while Guinness Nigeria Plc, Oando Plc, Total Nigeria Plc, African Petroleum and Dangote Sugar Refinery Plc topped the losers chart.

The market opened on Monday on a good note for investors, as the market capitalisation increased 0.09 per cent or N6 billion while the index rose by the same                                     Margin of 0.09 per cent or 23.48 points.

However, 29 stocks depreciated while 18 stocks appreciated. Total Nigeria Plc depreciated by 394 kobo. Nigerian Bottling Company Plc, Oando Plc, Cadbury Nigeria and Ecobank TransNational Incorporated (ETI) lost 145 Kobo, 94 kobo, 82 kobo and 70 kobo respectively.

Flourmills Nigeria appreciated by the maximum 200 kobo while Nigerian Breweries Plc, Cement Company of Northern Nigeria, First Bank and Dangote Sugar appreciated by 126 kobo, 50 kobo, 45 kobo and 14 kobo respectively.

Tuesday also recorded another increase in investors’ wealth,  as performance indicators rose  again by N51 billion or 0.83 per cent while the index appreciated further by 0.84 per cent or 209.23 points. The  disparity in the twin market indicators in the market, as shown on  Monday and Tuesday, readily explained that there was no introduction or listing of new shares in both days.

Thirty stocks appreciated compared to 28 stocks that depreciated.

Lafarge Wapco Cement Plc, Nigerian Bottling Company, Nigerian Breweries Plc, Ashakacement Plc and Zenith Bank Plc all appreciated by 189 kobo, 150 kobo, 100 kobo, 79 kobo and 63 kobo respectively while Flourmills Nigeria Plc, Honeywell Flourmills, Costain Plc, RT Briscoe and Skye Bank Plc lose by a value of 100 kobo, 33 kobo, 32 kobo, 20 kobo and 20 kobo respectively.

Investors’ search for shares of some banks such as  Zenith Bank Plc on Wednesday enhanced transaction volume, as 393.7 million shares, worth N2.8 million were exchanged in 6,709 deals, over 282.1 million units valued at N1.7 billion which was recorded in 5,881 deals on Tuesday.

However, corporate performance indices or the All-Share Index which measures the performance of quoted companies dropped by 80.22 points or 0.32 per cent, from 24,842.01 recorded on Tuesday.

A review of activities in the banking sub-sector showed that 80.4 million shares of Zenith Bank Plc worth N1.0 billion lifted activities in the banking sub-sector while 38.7 million units of Afribank Plc, valued at N67.7 million followed in 46 deals.

On the price movement chart, 29 stocks depreciated in price led by Guinness Nigeria Plc with 246 kobo, to close at N163.54 per share while African Petroleum Plc followed with 161 kobo, to close at N34.00 per share.

The weakened performance rate recorded at the close of Wednesday’s trading session consequently dipped further on Thursday with NSE All-Share Index posting negative outlook.

The ASI depreciated by 0.068 per cent.

The decline recorded in insurance, oil and gas, food and beverages and some blue chips stocks as indicated by the performance of NSE-30 index contributed to the overall market decline.

Food and beverages sector led the decline chart among all the four NSE sectoral indexes.

This trend shows clear indications of lack of investors’ commitment to holding stocks, as it seems that majority of players in the market now resort to buying and selling within the short period.

Transaction in the day showed 29 stocks deepening in value compared to 28 others who pitched their tent on the gainers chart.

The market closed the week on Friday on a high note as the market capitalisation rose by N24 billion while the index appreciated 101.69 points to close the week at high of N6.08 trillion and 24,846.64 points respectively. A total of 248,828,125 shares were added to the shares outstanding in the name of Ashakacement Plc on Monday’s transaction following the bonus of one for eight.

Meanwhile, a turnover of 255 million units worth N293,555.5 million in 2,554 deals was recorded last week, in contrast to a total of 418.31 million units valued at N465,742 million exchanged in 3,345 deals during the week ended Thursday, July 8, 2010. The most active bond (measured by turnover volume) was the sixth FGN bond 2029 Series 3 with a traded volume of 35.21 million units valued at N48,845.7523,899.5 million in 353 deals. This was followed by the sixth FGN bond 2029 Series 5 with a traded volume of 29.5 million units valued at N29,376.7 million in 230 deals. Thirty-four of the available 37 FGN bonds were traded during the week, compared with 20 in the preceding week.