Nigerian Bank Nigeria First Bank of Nigeria Plc – Stock Market Downturn Lingers

Source Next: Daniel Osunkoya, 15th December 2009

The value of equities at the Nigerian Stock Exchange plunged further at the close of trading yesterday as the two parameters for measuring market performance, the All-Share Index and the market capitalisation, have both declined by 3.57 per cent within one week.

Consequently, in the past week, the Exchange has lost over N182 billion on the value of the 200 First-Tier equities listed on its floor.

Oladele Odusanya, managing director and chief executive officer of Quantum Securities Limited, said the capital market, which had showed signs of recovery fortnight ago, “is performing as it should be.”

Mr. Odusanya said, “Stock market is like any other market where the prices of products go up and down. We should also note that the prices of equities at the capital market are expected to fall during festive season, and that is what we are seeing now.”

He is however optimistic that “the market will surely bounce back.”

High turnover

Last week, there was a turnover of 1.56 billion shares valued at N12.14 billion in 31,232 deals, in contrast to the total of 1.45 billion shares worth N8.73 billion exchanged in the preceding week in 28,892 deals.

Transactions during the week included a total of 364,000 units of Crusader (Nig) Plc Unsecured Convertible Debenture Stock 2013 worth N364.0 million.

As usual, in terms of volume, the banking sub-sector was the most active during the week, with 776.4 million shares worth N6.6 billion exchanged by investors. Volume in the sub-sector was largely driven by activity in the shares of First Bank of Nigeria Plc, UBA Plc, and Skye Bank Plc.

Trading in the shares of the three banks accounted for 319.04 million shares, representing 41.1 per cent of the sub-sector’s turnover.

The insurance sub-sector followed on the week’s activity chart with a turnover of 239.14 million shares valued at N287.81 million. Volume in the sub-sector was boosted by activity in the shares of AIICO Insurance Plc and Custodian and Allied Insurance Plc.

Price movement

A total of 31 stocks appreciated in price during the week, same as in the preceding week.

Nestle Nigeria Plc led on the gainers’ table with a gain of N5.02 to close at N239.00 per share while Flour Mills of Nigeria Plc followed with N1.95 to close at N34.50 per share.

On the flip side, a total of 64 stocks depreciated in price last week, higher than the 61 of the preceding week. UAC of Nigeria Plc led on the price losers’ table, dropping by N3.49 to close at N36.01 per share while Julius Berger Nigeria Plc followed with a loss of N2.81 to close at N26.09 per share.

Bond market

A turnover of 254.1 million units worth N300.196 billion was recorded during the week, in contrast to a total of 185.23 million units valued at N209.928 billion exchanged during the week ended Thursday, December 3, 2009.

The most active bond, measuring by turnover volume, was the 5th Federal Government of Nigeria (FGN) Bond 2028 Series 5 with a traded volume of 37.82 million units valued at N62.937 billion. This was followed by the 5th FGN Bond 2013 Series 4 with a traded volume of 24.1 million units valued at N26.231 billion.

Only 20 of the available 37 FGN Bonds were traded during the week, compared to the 24 in the preceding week.

Nigerian Bank Nigeria First Bank of Nigeria Plc, Nigerian Stock Exchange, Skye Bank Plc, UBA United Bank for Africa