Nigeria Content Online

Market indices at
the Nigerian Stock Exchange, NSE, bounced back to profitability
yesterday after two days of negative performances.

The two days decline plunged the market by over N116 billion from the N580 billion recovered in the last two weeks.

The indices for
measuring market performance; the market capitalisation and the
All-Share Index, at the close of proceedings on Tuesday, appreciated by
0.19 per cent.

While some analysts
have predicted that the capital market will experience sustainable
rebound in the second quarter of the year, past data showed that since
December 2008, the market has not witnessed more than nine consecutive
positive trading days.

Gregory Otsu,
managing director and chief executive officer of Mact Securities
Limited, said the unstable market recovery “is normal and should not
cause panic for investors. There is a worry about the down trend in the
market during the last few days.”

“But the real
situation is that investors are trying to take profit. Any market in
the world is based on demand and supply. You have a situation where
people need money for various reasons; you’ll expect them to cash-in
opportunities to meet their needs. I believe the current performance is
normal and in few days time we should expect positive and stable
reactions,” he added.

Market dynamics

The market
capitalisation yesterday recorded over N13 billion gains on Monday’s
figure of N6.657 trillion, to close at N6.670 trillion; while the
All-Share Index gained 53.34 points up from 27,383.91 basis points to
close at 27,437.25.

A total of 27
stocks appreciated in price on Tuesday while 53 stocks shed their
prices. Over 602.484 million volume of shares, valued at N5.525
billion, were recorded in 8,784 deals.

Equity analysts at
Proshare Nigeria Limited, an investment advisory firm, said the market
“out-staged the bears and returned to positive outlook owing more to
market dynamics that revealed a significant increase in transaction
volume.”

They added that the
positive outlook recorded at the close of market was a function of
positive performances in the shares of Petroleum Marketing, Banking,
Food/Beverages and some of the blue chip stocks.

“In the midst of
volatility of the entire market, Food/Beverages and Petroleum Marketing
sectors posted above the general market performance in the past five
trading days,” the analysts explained further.

Active sectors

The hotel and
tourism subsector led the most active subsectors’ chart with 204.046
million volume of shares, valued at over N731.786 million. Volume in
the subsector was largely driven by trading in the shares of Capita
Hotel, followed by Ikeja Hotel.

Trading activities
in the banking subsector followed with 150.711 million shares valued at
N1.411 billion. Deals in shares of Guaranty Trust Bank, First Bank of
Nigeria, and Diamond Bank boosted volume in this subsector.

The insurance
subsector was third in the activity chart with 61.736 million shares
worth N57.642 million. Volume in the subsector was driven by trading in
the shares of Universal Insurance Company, NEM Insurance Company, and
Aiico Insurance.