Nigerian Bank Nigeria Access Bank Plc – Blue Chip Stocks Contribute To Market Woes

Zenith Bank Building

Source: Daniel Osunkoya,234Next,  November 8

The Nigerian Stock Exchange has attributed the continuous bearish trend witnessed at the capital market to the decline in the prices of some highly capitalised stocks. In its stock weekly report, last Friday, the Exchange stated that the drop in the prices of these equities, though infinitesimal, had negative effect on measuring indices – the market capitalisation and the All-Share Index.

At the close of trading last week, eight of the 15 most capitalised stocks depreciated in share prices. Ecobank Nigeria Plc, First Bank of Nigeria Plc, United Bank for Africa Plc, Zenith Bank Plc, and Stanbic IBTC Bank Plc shed N0.92, N0.71, N0.35, N0.04, and N0.02 per share, respectively.

Indices drop
The Exchange’s market capitalisation of the 198 First-Tier equities closed lower on Friday at N5.076 trillion after opening the week at N5.143 trillion; representing over N67 billion loss or 1.30 per cent decline. The NSE All-Share Index dropped by 1.32 per cent to close on Friday at 21,517.29 basis points from 21,804.69.

One of the four sectoral indices appreciated; the NSE Food/Beverages Index rose by 1.94 per cent to close at 494.41. However, The NSE Banking Index dropped by 2.8 per cent to close at 346.28. The NSE Insurance Index dropped by 2.41 per cent to close at 290.12. The NSE Oil/Gas Index dropped by 1.1 per cent to close at 299.94.

Price movement
A total of 33 stocks appreciated in price during the week, lower than the 41 in the preceding week. Nestle Nigeria Plc led the gainers’ table with a gain of N21.93 to close at N235.93 per share while Unilever Nigeria Plc followed with N4.15 to close at N19.22 per share.

On the other hand, 59 stocks depreciated in price against 55 in the preceding week. Lafarge Cement WAPCO Nigeria Plc led on the price losers’ table, dropping by N2.00 to close at N29.00 per share while Flour Mills of Nigeria Plc followed with a loss of N1.95 to close at N33.87 per share. A turnover of 2.4 billion shares worth N14.65 billion in 31,070 deals was recorded last week, in contrast to the 1.95 billion shares valued at N11.4 billion exchanged last week in 30,579 deals.

Banks lead
The banking subsector was the most active during the week, measuring by turnover volume, with 1.62 billion shares worth N10.33 billion. Volume in the banking subsector was largely driven by activity in the shares of Oceanic Bank International Plc, Access Bank Plc, UBA Plc and First Bank of Nigeria Plc. Trading in the shares of the four banks accounted for 914.3 million shares, representing 56.6 per cent of the subsector’s turnover.

The Insurance subsector, boosted by activity in the shares of Goldlink Insurance Plc and AIICO Insurance Plc, followed on the week’s activity chart with a turnover of 426.9 million shares valued at N296.53 million.

Bond market
At the bond market, last week, a turnover of 352.2 million units worth N443.826 billion was recorded, in contrast to a total of 408.8 million units valued at N502.043 billion during the week ended Thursday, October 29.

The most active bond, in terms of volume, was the 5th Federal Government of Nigeria (FGN) Bond 2028 Series 5, with a traded volume of 64.94 million units valued at N111.890 billion. This was followed by the 4th FGN Bond 2012 Series 2, with 48.8 million units valued at N54.659billion. Only 22 of the available 37 FGN Bonds were traded during the week, compared to 19 in the preceding week.

There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.

Nigerian Bank Nigeria Access Bank Plc, Ecobank Nigeria Plc, First Bank of Nigeria Plc, Oceanic Bank Plc, Stanbic IBTC Bank Plc, Zenith Bank Plc