Nigeria Content Online

Profit
taking activities by some investors have been attributed to the current
decline in market capitalisation of the Nigerian Stock Exchange (NSE).

The
Exchange market capitalisation of the 201 First-Tier equities closed
lower on Thursday at N8.811 trillion after opening the day at N8.875
trillion, reflecting 0.72 per cent decline or N64 billion losses. The
market had lost N9 billion after Wednesday’s trading session.

Bola
Oke, a finance analyst at WealthZone Company, an investment management
firm, said profit taking was expected following the recent upturn
recorded in the market. “Investors will always take the little profits
on their investments once there is a bullish trend,” Mrs. Oke
said.Meanwhile, GTI Capital, a stockbroking firm, said, “The ongoing
profit taking activities is a good move as it is bound to create
several entry opportunities. Traders are expected to hold cash for
timely positioning at the end of the pull back.” In the mean time, the
management of Wema Bank, at the presentation of its facts behind
figures to market operators yesterday, said it is confident that the
bank’s general performance this year will improve better than last year.

Wema Bank forecast

The
bank presented earnings forecast of N4.881 billion in gross earnings
and N285.762 million profit after tax (PAT) for the first quarter of
the year. It also forecast, for the second quarter, gross earnings of
N5.346 billion and PAT of N312.977 million; for third quarter, gross
earnings of N6.044 billion and PAT of N353.801 million, while last
quarter gross earnings is N6.973 billion and PAT of N408.232 million.

Wema
bank had in its audited third quarter accounts for the period ended
September 30, 2010 recorded a 4.74 per cent decline in turnover, from
N25.286 billion to N24.085 billion. The PAT inched up by 105.50 per
cent from a loss of N29.727 billion to a gain of N1.635 billion.

With
“long term investors seizing the opportunities to position in Wema Bank
stock at the market price” on Thursday, according to GTI Capital, the
bank led as the most traded stock with 38.551 million shares
transacted. It was followed by First Bank, FinBank, Unity Bank and
BankPHB.

David
Adonri, chief executive officer of Lambert Trust and Securities Company
Limited, said other quoted companies should ensure they present their
facts behind figures to the Exchange to enable investors and analysts
take informed decision on investment.

However, at the close of Thursday’s trading, African Petroleum
gained 4.98 per cent to lead on the gainers’ chart while C&I
Leasing followed on the chart with 4.83 per cent; Champion Breweries
gained 4.70 per cent. On the losers’ side, market forces slashed 4.95
per cent off the opening price of Costain; Presco followed with 4.80
per cent while UBA shed 4.12 per cent.