Nigeria Content Online

While stock market operators may not directly be affected with
the proposed three-day warning strike by government workers, some finance
analysts said the performance of trading activities at the capital market may
further suffer decline during the industrial action.

Investors at the Nigerian Stock Exchange (NSE) already recorded
loses of over N116 billion in the past one week due to profit taking
activities.

However, Detola Olukorede, head, equity research team at
Investment Option, a fund management firm, said the value of equities at the
NSE “may further depreciate this week due to the high selling pressure the
market will witness.” Mr. Olukorede said, “When workers are embarking on a
nationwide strike of this magnitude, it is expected that investors, especially
retail investors will start ordering for the sales of some of their stocks to
enable them have cash at hand during the strike.”

Johnson Chukwu, chief executive officer of Cowry Asset
Management, a stock broking firm, said institutional investors may also want to
see the outcome of the industrial action before taking position in the market.

Analysts said all these “cautious reactions” by investors are indicative
of a market that will further plunge in worth due to the warning strike.

The Nigeria Labour Congress and the Trade Union Congress are to
embark on a three-day warning strike from Wednesday over the proposed N18, 000
minimum wage.

Market indices down

Meanwhile, the decline witnessed at the NSE last Friday
continued at the close of trading session on Monday. The Exchange’s market
capitalisation lost N23 billion on Friday’s figure of N7.919 trillion, to close
at N7.896 trillion, a 0.29 per cent decrease.

The All-Share Index was also down by 0.29 per cent, shedding
72.39 units from the 24,800.47 basis points recorded on Friday, to close
yesterday at 24,728.08 basis points.

A total of 20 stocks appreciated in price on Monday while 36
stocks depreciated. Oando and United Bank for Africa topped the price gainers’
table with an increase of N1.95 and 35 kobo on their initial prices of N64.05
and N8.60 per share, respectively.

On the flip side, Cadbury Nigeria and PZ Cussons led the price
losers’ chart with a loss of 67 kobo and 50 kobo respectively, from their
opening prices of N29.56 and N33.00 per share.

Most active

Five banks -FinBank, Oceanic, Bank PHB, Zenith, and United Bank
for Africa -were the most traded stocks yesterday.

The Banking subsector led the most active subsectors’ chart with
352.013 million volumes of shares, valued at over N1.684 billion. Volume in the
subsector was driven by banks that led the most traded stocks’ chart.

Trading activities in the Insurance subsector followed, with
24.230 million shares valued at N16.640 million. Deals in shares of Lasaco
Assurance largely boosted volume in this subsector, followed by Aiico Insurance
and NEM Insurance.

The Food/Beverages subsector was third in the chart. Investors
in this sector exchanged 11.231 million shares, worth N191.795 million. Volume
in the subsector was driven by deals in the shares of Dangote Flour Mills and
Dangote Sugar.