IMPROVEMENT recorded by listed stocks on the Nigerian Stock Exchange (NSE) last week  was attributed to the response of investors to  what experts described as self inflicted injury  suffered by the two  major actors in the operations of the Exchange. The Securities and Exchange Commission (SEC) announced the suspension of the President Alhaji Aliko Dangote and the removal of the Director General (DG), Professor Ndi Okereke-Onyiuke who had been embroiled in cold war over the management of the Exchange.

The sack of Prof Okereke-Onyiuke was in response to allegation of mismanagement of N11 billion by Alhaji Dangote. The market being driven by information nose-dived rather than continue on the stride recorded in the previous week when banking stocks led gainers in response to plans to commence operation by the Asset Management Company of Nigeria (AMCON). Activities on the Exchange recorded poor performance for two trading days during the week.

An x-ray of transaction in the market in the week revealed that the 13-trading floor of the exchange spread among the six geopolitical zones in the country over night became a sellers market. The massive dump of shares based on  fear of what would become of the market  as a result of the allegation of the financial mismanagement resulted in deepening of investors’ wealth  by N104 billion  at the  closing of trading activities on Tuesday. It will be recalled that the dip in market value indicators started on July 30 when news got to the market concerning the alleged monumental fraud.

On this day, the market value went down by N4 billion. Although the Exchange made effort to douse tension that the issue of the alleged fraud was not responsible for the decline in prices of shares in the market; profit taking according to the spokesman of the market, was blamed for the sharp decline.

This persuasion, however, failed to change investors’ investment decision when compared to the volume of transactions that took place in the previous week. A review of cumulative transactions during the week showed that Mobil Nigeria Plc led gainers in the market.

The stocks of the company rose by N15.00. Nestle Nigeria Plc followed closely with N5.00 per cent, while Nigerian Breweries, PZ Cussons and Flourmill Nigeria ended up as the five top gainers with N4.81, N1.91 and N1.00 per share. Conversely, MRS Oil Plc, Guinness Nigeria Plc, UAC of Nigeria Plc, Union Homes REITS Plc and Oando Plc slid in value by N4.50, N4.06, N3.00, N2.50 and N2.07 per share respectively.

Dangote’s presidency of the equities market had been a subject of litigation for several months and affecting the reputation of the market which ordinarily ought to be driven by sound corporate governance and respect for rules of law. Explaining the latest downturn in the market, the Head of Corporate Communications, Mr. Sola Oni, said it was simplistic to attribute the poor performance of the market to alleged misappropriation of funds by the NSE.  “What is happening currently is that investors are simply realising current capital appreciation. One of the unique features of a month end is realignment of portfolio by many investors. They want to review their assets classes and identify their net profit from each class as a basis for further decision.

“We should not lose the fact that we are approaching summer when some high net-worth investors travel overseas. One of the options available for them to mobilise funds is to sell part of their shares,” he explained. However, stakeholders in the market and investors  hailed the decisive action of SEC, noting, however, that it was long overdue. Transaction on the Nigerian Stock Exchange on Monday re-opened on a downward note, occasioned by heavy share price losses suffered by major blue-chip companies, causing market capitalisation to slide further by N51 billion.

Similarly, volume of traded shares recorded a downturn, as 193.3 million shares worth N2 billion exchanged hands in 5,997 deals, lower than 351.2 million units worth N3.1 billion exchanged in 5,917 on Friday. Specifically, at the close of transactions  on Monday,  performance indicators, including the All-Share Index of the NSE dipped by 209.79 points or 0.8 per cent, from 25,844.18 recorded on Friday to 25,634.39 and market capitalisation dipped by N51 billion or 0.8 per cent from N6.320 trillion to N6.269 trillion. Further analysis in the day’s transaction showed that 43 stocks depreciated in price, compared to 25 that constituted the gainers chart. Guinness Nigeria Plc topped the day’s losers table with 400 kobo while Union Homes REIT followed with 250 kobo.

On the chart, the banking sub-sector remained the most active stock in volume terms with 101.7 million shares, worth N892 million in 3,205 while the insurance sub-sector followed with 29.7 million units valued at N28.1 million in 248 deals. Investors on Tuesday swapped 266.2 million ordinary shares worth N1.93 billion in 6,804 deals. At the close of transaction in the day, the value of listed equities, represented by market capitalisation depreciated by N53 billion, from N6.269 trillion posted on Monday to N6.216 trillion. The All-Share Index closed the day at 25,418.84 after losing 215.55 basis points.

Forty-six stocks recorded price depreciation as against 20 that featured on the gainers’ table. Chevron, Oando, UACN, WAPCO and PZ Cussons fell by N4.50, N3.48, N2.20, N2.05 and N1.60 respectively. On the other hand, Mobil, Nigerian Breweries, Berger Paint, United Bank for Africa and Nigeria Aviation Handling Company rose by N8.00, N2.30, N0.32, N0.28 and N0.27. The market was on the upbeat again on Wednesday with investors swooping on blue-chip companies, and this resulted in the market indicators rising by N67 billion. Specifically, at the close of transactions in the day, 36 stocks enjoyed price appreciation, compared to 34 that depreciated in price. Precisely, the market capitalisation increased by 1.0 per cent from N6.216 trillion on Tuesday to N6.283 trillion while the All-Share Index rose to 25,691.30, 212.46 points from 25,418.84 recorded on Tuesday. On the price movement chart, Nigerian Breweries led the bulls up with 360 kobo, while UACN followed, adding 145 kobo. PZ Cussons Plc, Oando Nigeria Plc and Benue Cement Company Plc added 130 kobo, 114 kobo and 50 kobo per share.

However, Mobil Nigeria Plc led others on the losers’ chart with 865 kobo. Cadbury Nigeria Plc followed with 43 kobo while Cement Company of Northern Nigeria Plc, Dangote Sugar Refinery Plc and Costain West African Plc fell 43 kobo, 36 kobo and 31 kobo per share. With transaction exchanged in 3,469 deals, the banking sub-sector dominated in volume terms with 129.1 million shares worth N1.2 billion while the Information and Communication Technology followed with 41.5 million units worth N79.1 million. Apparently on the intervention of the Securities and Exchange Commission (SEC), in the stock exchange, transactions in the stock market on Thursday witnessed another rise, as major  capitalised stocks recorded price appreciation, thus resulting in a further increase in total market value by N6 billion. While the value of traded equities dropped from the usual billion point to million, with 184.4 million shares worth N925.8 million traded in the day in 1,882 deals, major performance indicators were up by 0.09 per cent.

Specifically, at the close of trading, corporate performance indices or the All-Share Index of the Exchange rose by 24.09 point from 25, 6991.30 recorded on Wednesday to 25,715.39 while market capitalisation increased by N6 billion or 0.09 percent from N6, 283 trillion to N6, 289 trillion. On the price movement chart, 23 stocks appreciated in price led by Nigerian Breweries Plc with 400 kobo while.  Dangote Sugar Refinery Plc followed with 86 kobo gains. Other gainers of Thursday’s trading included Okomuoil Plc, Zenith Bank Plc and Access Bank Plc. They added 66 kobo, 45 kobo, and 41kobo per share. Twenty-two stocks depreciated in price, as Benue Cement Company Plc emerged the day’s highest price loser with 48 kobo while Cement Company of Northern Nigeria Plc followed with 43 kobo. The market closed the week on Friday on a plausible note as the market capitalisation rose by N5 billion while the index added 23.4 points to close the week at a high of N6.294 trillion and 25,738.79 points.