Nigeria: Stock Market Closes Year On Bearish Note

Leadership (Abuja)

Chris Ugwu

2 January 2012

Activities on the floor of the Nigerian Stock Exchange(NSE) at the close of the last trading day of the year closed in the red as the NSE All-Share Index depreciated by 32.63 points or 0.15 per cent to close at 20,730.63, while the Market Capitalisation of the equities dropped to N6.533 trillion.

Also, the NSE-30 Index depreciated by 7.99 points or 0.9 per cent to close at 923.77. In the preceding week, the NSE-ASI and NSE-30 Indices appreciated by 3.6 per cent and 4.0 per cent respectively.

Three of the four sectorial indices appreciated during the week compared to two that appreciated during the preceding week. The NSE Food/Beverage Index appreciated by 5.19 points or 0.9 per cent to close at 589.60. The NSE Banking Index appreciated by 0.36 points or 0.14 per cent to close at 274.26.

The NSE Insurance Index appreciated by 0.06 points or 0.04 per cent to close at 143.54. However, the NSE Oil/Gas Index depreciated by 0.96 points or 0.42 per cent to close at 220.11.

The stock market opened for three days as Monday and Tuesday were declared public holidays to celebrate the Christmas and Boxing Day.

Consequently, 33 equities appreciated in price during the week, lower than the 41 of the preceding week. Dangote Cement Plc led on the gainers’ table with a gain of N5.27 or 5.0 per cent to close at N110.77 per share, while Guinness Nigeria Plc followed with a gain of N5.00 or 2.0 per cent to close at N250.00 per share, among other gainers.

On the other hand, 29 stocks depreciated in price, lower than the 32 of the preceding week. Nigerian Breweries Plc led on the price losers’ table, dropping by N15.68 or (14.24 per cent ) to close at N94.42 per share, while 7-Up Bottling Company Plc followed with a loss of N2.44 or (5.0 per cent) to close at N46.47 per share, among other losers.

However, a turnover of 1.72 billion shares worth N11.9 billion in 7,309 deals was recorded last week, in contrast to a total of 1.55 billion shares valued at N7.993 billion exchanged the previous week in 15,494 deals. The Financial Services sector accounted for 1.55 billion shares valued at N10.15 billion traded in 4,282 deals.

The Banking subsector of the Financial Services sector was the most active during the week (measured by turnover volume) with 1.35 billion shares worth N10.035 billion exchanged by investors in 3,766 deals.

Volume in the Banking sector was largely driven by activity in the shares of First Bank of Nigeria Plc. Trading in the shares of the bank accounted for 843.311 million shares, representing 62.7 per cent , 54.46 per cent and 49.1 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 Universal Insurance Company Plc and Guinea Insurance Plc, followed on the week’s activity chart with a subsector turnover of 192.7 million shares valued at N108.75 million traded in 507 deals.

There were no transactions executed through the stock market in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors. subsector, both from the Financial Services sector.

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