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Investors at the
Nigerian Stock Exchange recorded a total loss of N74.175 billion at the
close of trading activities in November. The drop in value was
attributed to the decline in equity prices as investors sought to take
quick profit.

Meanwhile, the
research team at GTI Capital, a stock broking firm, attributed the
decline to the price valuation process to be adopted by the Asset
Management Company of Nigeria (AMCON).

“The bull’s pace
immediately slowed down and almost all stock, especially those in the
banking sectors, and trading above the calculated rescue price, have
dropped below the said prices, while those trading below the calculated
rescue prices find it difficult to hit such prices,” the team said.

According to the
report, “the market may not do any good return until AMCON takes off.”
The market value of the 216 listed equities, which opened the month at
N7.982 trillion, closed on the last trading day of November at N7.908
trillion, reflecting N74.175 billion losses or a 0.93 percent decline.
The value of the listed equities accounted for 79.04 percent of the
total market capitalisation of the 263 quoted securities value
(including bonds) at N10.015 trillion.

Also, the Exchange
All-Share Index (ASI), which opened at 25,042.16, closed at 24,764.65.
This shows a decline by 277.54 points or 1.11 percent during the month.

The Exchange’s
strategy and business development department said, “The stock market
performance in November was largely unsatisfactory,” adding that the
decline in market capitalisation “can be attributed largely to the drop
in equity prices and the delisting of one matured Federal Government of
Nigeria bond.”

High turnover, low value

The market recorded
a high turnover of 7.43 billion shares, valued at N60.34 billion in
121,531 deals during November, in contrast to a total of 6.71 billion
shares, valued at N90.6 billion, exchanged during October in 117,203
deals.

Hence, traded
volume and number of deals increased by 10.8 percent and 3.7 percent
respectively, while the value traded dropped by 33.4 percent. Last
month, volume and value of trades rose by 39 percent and 92 percent,
respectively.

Aggregate stock
market turnover between January and November 2010 were 86.43 billion
shares, valued at N730.8 billion, exchanged in 1,799,081 deals. In the
comparable period during 2009, the market recorded turnover of 95.3
billion shares, valued at N638.11 billion, in 1,619,385 deals.

Active subsector

Measuring by
turnover volume, the Banking subsector was the most active in November
with traded volume of 4.95 billion shares, valued at N35.51 billion,
exchanged in 70,864 deals; while the Insurance subsector was second
with traded volume of 801.52 million shares, valued at N580.2 million,
exchanged in 5,707 deals.

The Information
Communication Technology subsector was third with transaction volume of
254.7 million, valued at N498.4 million, traded in 472 deals, while the
Mortgage Companies subsector was fourth with transaction volume of
224.4 million shares, valued at N156.9 million, traded in 998 deals.

The Maritime
subsector was fifth with transaction volume of 186.62 million shares,
valued at N238.32 million, traded in 2,377 deals.

The five subsectors
accounted for 6.42 billion shares, valued at N37 billion, exchanged in
80,418 deals. In October, the five most active equity subsectors
accounted for 5.65 billion shares, valued at N44.31 billion, exchanged
by investors in 86,292 trades.

Bond Trading

Over-The-Counter
(OTC) bond market, a turnover of 730.82 million units worth
N750.91billion in 5,524 deals was recorded in November 2010, in
contrast to a total of 1.1 billion shares, valued at N1.036 billion,
exchanged during the preceding month in 8,004 deals.

The most active
bond, in terms of volume, was the 10.00 percent Federal Government of
Nigeria (FGN) Bond July 2030 (formerly 7th FGN Bond 2030 Series 3) with
traded volume 205.56 million units, valued at N155.8 billion, in 1,595
deals.

This was followed
by 4.00 percent FGN April 2015 (Formerly 7th FGN Bond 2015 Series 2)
with a traded volume of 151.7 million units, valued at N113.1 billion
in 1,250 deals. Only 26 of the available 34 FGN Bonds were traded
during the month, compared with the 29 in the preceding month.

Between January and
November 2010, total transactions on FGN Bonds through the OTC were
13.33 billion units, valued at N14.91 trillion, in 134,684 deals.
During the same period in 2009, total transactions on FGN Bonds through
the OTC were 15 billion, valued at N15.95 trillion, in 109,588 deals.