Stock Market Plunges Further By 1.2%

The Nigerian Stock Exchange continued on a negative trajectory at the close of the trading weekend as most blue chip companies joined the league losers resulting in the NSE All-Share Index depreciating by 254.01 points? or? 1.2 per cent? to close on Friday at? 20,623.63 while the market capitalisation of equities dropped to N6.5 trillion.

Market operators have continued to express concern over the continuous free fall of the listed stocks at the capital market.

Following the current market situation, the United Bank for Africa (UBA) had last week said it suspended plans to sell shares to raise additional capital, citing weak condition of the capital market as reason.

Agency report quoted the Group Managing Director/Chief Executive Officer, UBA, Mr. Phillip Oduoza, to have made this remark during an investors’ conference call to explain the bank’s results.

Oduoza said: “The Board and management have suspended our equity capital raising at this point in time pending when capital markets improve.”

Consequently,? the NSE-30 Index depreciated? by? 11.26? points or? 1.2 per cent? to close at? 930.98.? In the preceding week, the? NSE-ASdepreciated by 0.1 per cent while the NSE-30 indices appreciated by 0.7 per cent.

Two of the four sectorial indices appreciated during the week, same as during the preceding week. The NSE Consumer Goods Index appreciated by 8.07 points or 0.5 per cent to close at 1,684.78 while theNSE? Oil/Gas Index? appreciated by? 1.03? points or? 0.5 per cent to close at? 213.78.? However, the? NSE Banking Index depreciated by 10.53 points or 3.8 per cent to close at 272.92 and the NSE Insurance Index depreciated by? 5.50? points or? 4.7 per cent to close at? 114.28.?

Further analysis of the week’s trading showed that? 19 equities appreciated in price during the week,? lower? than the 25 of the preceding week. Two equities from the Consumer Goods sector led on the gainers’ table.

As in the preceding week, Nestle Nigeria Plc led on the gainers’ table with a gain of N6.65 or 1.5 per cent to close at N446.65 per share while Nigerian Breweries Plc? followed with a gain of N1.39 or 1.5 per cent to close at N95.40 per share, among other gainers.?

? On the other hand 42 stocks depreciated in price, higher than the forty (40) of the preceding week. MRS Oil Nigeria Plc led on the price losers’ table, dropping by N4.68 or (9.7 per cent) to close at N43.39 per share while? Julius Berger Nigeria? Plc? followed with a loss? of N3.46? or? (11.9 per cent)? to? close at N25.65? per share, among other losers.

However, a turnover of 1.342 billion shares worth N7.01 billion in 15,166 deals was recorded last week, in contrast to a total of? 1.613? billion? shares valued at N15.1? billion exchanged in the preceding week in? 17,444 deals.

The Nigerian Stock Market opened for four days as Monday, February 6, 2012 was declared Public Holiday to commemorate? eid-el-Maulud.

The Financial Services sector accounted for? 1.13 billion shares valued at N4 billion traded in 8,372 deals. The Consumer Goods sector followed with 70.4 million shares valued at N2.15 billion traded in 3,026 deals.

The? Banking? subsector of the? Financial Services? sector was the most active during the week (measured by turnover volume); with? 852.83? million shares worth N3.833? billion exchanged by investors in? 7,880? deals.?

Volume in the? Banking? subsector? was largely driven by activity in the shares of? UBA Plc.? Trading in the shares of the? bank? accounted? for? 426,342? million? shares, representing 50.0 per cent, 37.8 per cent and 31.8 per cent of the turnover recorded by the subsector, sector and total turnover for the week, respectively.

The? Insurance? subsector of the? Financial Services? sector, boosted by activity in the shares? of Goldlink Insurance Plc and Mutual Benefits Assurance Plc, followed on the week’s activity chart with a subsector turnover of 263.11 million shares valued at N151.354 million traded in 479 deals.?