Nigeria Content Online

The Nigeria stock
market took a downward trend this week, in contrast to last week, where
the market somewhat rebounded. The major fall in the market this week
came on Friday, consistent with the lull in the markets all over the
world. World markets dropped sharply on Thursday as sentiment continued
to be hit by concerns about the Greece’s debt crisis and figures
showing an unexpected increase in US jobless claims last week. The
worries left most of the world’s leading indexes now trading below
where they started 2010.

The market’s losses
intensified in light of the recorded declines in international and
regional stock markets during the week, mainly, due to latest
developments in Greece’s debt crisis.

Market activities

By the end of the
week, the NSE AS Index closed at 26,784.90 points, down by 3.49 per
cent from the previous week closing, whereas the market capitalisation
registered a 3.44 per cent weekly loss after closing at N6.52 trillion.
Accordingly, the market’s year-to-date gains were reduced as a result
of last week’s incurred losses, as the NSE AS index’s increase from the
beginning of the year reached 28.61 per cent, while market
capitalisation’s gains became 30.58 per cent.

Apart from the fall
in major markets, profit reaping activities that took place on most of
the trading sessions led to a reduction market capitalisation. Selling
pressures increased in the week, and the indices couldn’t sustain the
positive momentum gathered during the previous weeks as profit taking
dragged the indices to negative territory. Low liquidity stock seemed
to take the forefront in equity value contributions during the week,
while Blue chip shares took the back seat making modest contributions
towards turnover. Equity value slipped by 37.53 per cent when compared
with previous week’s position. As it is, most investors seemed to have
kept to the sidelines during week. Trading volume remained light,
signalling a lack of strong conviction behind the market’s moves.

In the meantime,
the sluggish sentiment may persist as a result of continued control of
cautiousness on the course of trading. Thus the indices will continue
to remain volatile during the coming week. However, investors should
closely monitor the market and capitalise on the bargain hunting
opportunities that exist in the market. In effect, the pullbacks should
be embraced as buying opportunities.

Most active sector

The Banking
sub-sector remain the most active (measured in terms of traded volume)
as it recorded 795.48 million shares valued at N7.96 billion exchanged
in 17,368 deals while the Hotel and Tourism sub-sector was second with
traded volume of 204.05 million shares valued at N731.79 million in 56
deals.

Gainers and losers

The market breadth,
indicating the overall health of the market, was negative on NSE market
in the just concluded week, with 82 shares declining as compared to 16
that advanced. A total of 41 shares remained unchanged.

Corporate actions and results

During the week,
FCMB Plc released its full year trading result on the floor of NSE. The
bank recorded gross earnings of N35.79 billion representing a decrease
of 50.77 per cent from previous year’s trading result. The company also
posted a Profit After Tax of N564.00 million. The Directors proposed
dividend of N0.05kobo per share.

NIGERIAN BREWERIES
released its first quarter (Q1) result on the floor of NSE in the past
week. The company declared a turnover of N40.574 billion representing
an increase of 0.42 per cent from previous year’s trading result. The
company also posted a Profit After Tax of N6.46 billion. The Directors
proposed a dividend of N1.15 kobo.

MULTIVERSE Plc and
FTNCOCOA Plc also released their full year trading result on the floor
of NSE. The Directors of MULTIVERSE Plc proposed a dividend of
N0.01kobo per share, while the Directors of FTNCOCOA Plc proposed a
dividend of 3.5kobo per share.

Furthermore,
AIRSERVICE Plc, GTASSURE Plc and BERGER PAINTS Plc released their full
year trading result on the floor of NSE in the just concluded week. The
Directors of AIRSERVICE Plc proposed a dividend of N0.10 kobo per
share, while the Directors of GTASSURE Plc proposed a dividend of N0.04
kobo per share, and the Directors of BERGER PAINTS Plc proposed a
dividend of N0.50 kobo per share.

Market outlook

The week has
witnessed considerable weakness in purchase activities. Investors are
still cautious about being long at current levels due to value issues.
However, investors’ toast for blue-chip stocks (whose prices have
bottomed out) will make us may see recovery in the coming week.