Nigeria Content Online

Some finance
analysts have said that the recent change in leadership of the Nigerian
Stock Exchange (NSE) would bring stability to the market soon, despite
the current unsteady performances at the Exchange.

The NSE measuring
parameters, which recorded gains in three of the five trading days last
week, depreciated at the close of Monday’s trading by 0.51 percent.

Laoye Jaiyeola,
president of the Chartered Institute of Bankers of Nigeria, said the
recent action taken by the Securities and Exchange Commission (SEC) to
regulate the Exchange is similar to that which the Central Bank took
over the banking industry.

“I believe what the
SEC is trying to do is to ensure a strong, stable, and safe capital
market for all investors,” Mr. Jaiyeola said.

He said the regulatory measures the Exchange Commission has taken will soon boost investors’ confidence in the market.

David Adonri, chief
executive officer of Lambert Trust and Securities Company Limited, a
stock broking company, is also optimistic that the market “may firm
stronger as we approach the end of the third quarter.

“The past weeks
have been very turbulent in the market but there is calmness now,” he
said, adding that investors’ confidence is gradually picking up.

Market performance

Meanwhile, at the
close of trading on Monday, the NSE market capitalisation recorded
about N32 billion losses on Friday’s figure of N6.140 trillion, to
close at N6.108 trillion; while the All-Share Index lost 130.21 units
down from 25,106.86 basis points to close at 24,976.65.

A total of 27
stocks appreciated, yesterday, in price while 38 stocks depreciated.
Evans Medicals, Spring Bank, and Northern Nigerian Flourmills topped
the gainers chart for the day with five percent price appreciations.
However, Union Homes topped the losers chart for the day with five
percent depreciation.

The banking sector
led the market transaction volume today with 133.895 million units
valued at N1.001 billion exchanged in 3,000 deals.

Transactions in the
shares of Zenith Bank, UBN, FCMB, and Fidelity Bank boosted the volume
traded in the sector. The total volume of 78.92 million units valued at
N534.637 million traded in the shares of the four banks accounted for
58.40 percent of the entire sector volume and their value represented
53.39 percent of the sector’s value.

The downward trend dominated trading activities in the banking
sector on Monday as the sector records four gainers to 13 losers.At the
Exchange’s floor yesterday, Goldlink Insurance, in its second quarter
financial result of 2010, recorded 10 percent growth in gross earnings
and a 22.11 percent decline in profit after tax.