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The Nigerian Stock
Exchange recorded a total loss of N260 billion on equities at the close
of trading activities in February, after recording significant gains of
N662 billion in the preceding month.

The market value of
the 217 listed equities, which opened the month at N8.575 trillion,
closed on the last trading day in February at N8.315 trillion,
reflecting a N260 billion loss or 3.03 per cent decline.

The 217 listed
equities accounted for 80.74 per cent of total market capitalisation of
the 263 listed securities, which closed February at N10.298 trillion;
down by 2.7 per cent from the N10.583 trillion in January.

The Exchange’s
strategy and business development department said the downturn in stock
market activities, which started in late-January and continued during
February, “severely constrained growth” of the Nigerian capital market.

“The stock market
continued to suffer from low liquidity arising from low incomes and
reduced savings, mixed performance by quoted companies, and profit
taking/loss cutting,” the NSE said, adding that “the scenario continued
to dampen investors’ confidence.”

Low turnover

The market recorded
a turnover of 6.5 billion shares valued at N60.61 billion in 119,477
deals during February, in contrast to a total of 10.84 billion shares
valued at N104.1 billion exchanged during January in 139,950 deals.
Trading days last month were 19 compared with the 20 days in January.

Aggregate stock
market turnover between January and February were 17.334 billion shares
valued at N164.7 billion exchanged in 259,427 deals.

In the comparable
period during 2010, the market recorded turnover of 16.14 billion
shares valued at N100.8 billion in 429,306 deals.

Measuring by
turnover volume, the Banking subsector was the most active in February
with traded volume of 4.5 billion shares valued at N37.3 billion, while
the Insurance subsector was second with traded volume of 450.23 million
shares valued at N666.9 million. The Maritime subsector was third with
transaction volume of 218.41 million valued at N390.56 million.

Aanalysts at
Financial Derivatives Company Limited, a business consultancy firm,
said as trading proceed in the year, market drivers would be “the
progress of the Asset Management Corporation of Nigeria,” activities of
“investors taking position in anticipation of favourable year end
results” of some quoted companies, and “expansion of operations by
listed foreign multinationals.”

Bond trading

Over-The-Counter
(OTC) bond market, a turnover of 926.1 million units worth N841.05
billion was recorded in February 2011, in contrast to a total of 875.62
million shares valued at N801.134 billion exchanged during the
preceding month.

The most active
bond, in terms of volume, was the 10.00 per cent Federal Government of
Nigeria (FGN) Bond July 2030, with a traded volume of 218.6 million
units valued at N170.2 billion. It was followed by 5.50 per cent FGN
Feb 2013, with traded volume of 206.9 million units valued at N194.2
billion.

Only 24 of the available 33 FGN Bonds were traded during the month, same as in the preceding month.

As in the preceding
month, the most active bond, in terms of volume, was the 10.00 per cent
Federal Government of Nigeria (FGN) Bond July 2030 with a traded volume
of 269.4 million units valued at N214.54 billion.

It was followed by
5.50 per cent FGN Feb 2013 with traded volume of 199.85 million units
valued at N191.4 billion. Only 21 of the available 32 FGN Bonds were
traded during the month, compared with the 24 in the preceding month.