Nigerian Bank Nigeria CBN Central Bank Of Nigeria – Three Banks Raise Volume Of Transactions On The Exchange

Source The Guardian: Moses Ebosele, January 25th 2010

RISING transactions volume in the banking sub-sector of the Nigerian Stock Exchange (NSE) was last week sustained by activities in the shares of Zenith Bank Plc, Finbank Plc and Fidelity Bank Plc.

As at the close of transaction on Friday, trading in the shares of the three banks accounted for 552.13 million shares, representing 49.6 per cent of the sub-sector’s turnover.

The Banking sub-sector, as expected, was the most active during the week when measured by turnover volume with 1.11 billion shares worth N7.9 billion exchanged by investors in 17,452 deals.

The insurance sub-sector, boosted by activity in the shares of Unity Kapital Assurance Plc and Guaranty Trust Assurance Plc, followed on the week’s activity chart with a turnover of 412.1 million shares valued at N613.94 million in 1,756 deals. In the previous week, the Banking sub-sector led on the activity chart and was followed by the Insurance sub-sector.

Also within the week, the bond market recorded a turnover of 2.35 billion shares worth N11.8 billion in 160,784 deals, in contrast to a total of 2.2 billion shares valued at N12.8 billion exchanged in the previous week in 34,511 deals.

Information obtain from the NSE indicates that here was no transactions in the Federal Government (FG) development stocks, State Government bonds and industrial loans/preference stocks sectors.

On the price movement chart, the NSE All-Share Index depreciated by 0.14 per cent to close on Friday at 22,030.18 while the market capitalisation of the 200 First -Tier equities closed higher at N5.3 trillion.

Also, The NSE-30 Index depreciated by 0.2 per cent to close at 876.31. One of the four sectoral indices, the NSE Food/Beverages Index appreciated by 5.5 per cent to close at 586.31.

Further analysis indicates that the NSE Banking Index depreciated by 0.22 per cent to close at 357.35, the NSE Insurance Index depreciated by 2.1 per cent to close at 226.70 and the NSE Oil/Gas Index depreciated by 0.3 per cent to close at 298.45.

Fifty-Eight stocks appreciated in price last week, higher than the fifty-two of the preceding week.

Cadbury Nigeria Plc led on the gainers’ table with a gain of N3.26 to close at N15.50 per share while Unilever Nigeria Plc followed with N1.59 to close at N25.09 per share.

On the other hand, Forty-Six stocks depreciated in price during the week, lower than the forty-eight of the preceding week. Alumaco Nigeria Plc led on the price losers’ table, dropping by N3.94 to close at N23.77 per share while Zenith Bank Plc followed with a loss of N1.44 to close at N14.36 per share.

On major issue, which dominated discussions during the week was the directive of the Central Bank of Nigeria (CBN) pegging the tenure of chief executives of banks at ten years.

The new directives, according to the Central Bank of Nigeria (CBN) Director of Banking Supervision, Chief Sam Oni, are meant to enthrone the principles of corporate governance in the banking industry and insulate the banks from being personalised by individuals, who allegedly perpetrate all manner of abuses.

According to him, weak corporate governance and regulation have been identified as major factors in the financial crisis which bedevilled the “troubled” banks, which management were last year sacked by the apex bank.

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