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Profit
taking activities by some investors have been blamed for the continuous
downturn been witnessed in the Nigerian Stock Exchange (NSE).

Detola
Olukorede, an equity analyst at Investment Option, a fund management
firm, said, “It is expected that investors will always want to take the
little profits on their investments during festive season,” adding that
this enables them to celebrate the season.

Mr.
Olukorede said consequently, market performance was expected to fall
during the period because “profit taking activities drags equities
prices down.” Meanwhile, the Exchange market capitalisation of the 201
first-tier equities closed on Tuesday at N7.798 trillion after opening
the day at N7.801 trillion, reflecting 0.04 per cent decline or N3
billion losses. The market had lost N8 billion after Monday’s trading
session.

Multiverse, BankPHB, Intercontinental Bank, Skye Bank, and Guaranty Trust Bank were the most traded stocks on Tuesday.

Gainers decrease

A
total of 34 stocks appreciated in price on Tuesday; lower than the 38
gainers recorded previous day, while 26 stocks depreciated in value;
higher than the 25 recorded on Monday.

Cement
Company of Northern Nigeria and Nigerian Aviation Handling Company
topped the price gainers’ table with an increase of 65 kobo and 44 kobo
on their opening prices of N14.00 and N9.37 per share. University Press
and International Breweries followed in the chart with an increase of
32 kobo and 26 kobo, to close at N6.82 and N6.22 per share.

On
the losers’ side, PZ Cussons and Cadbury Nigeria led the price losers’
chart with a loss of N1.14 and 44 kobo, to close at N31.45 and N26.06
per share respectively. UAC Nigeria and Costain West Africa followed
with a decrease of 42 kobo and 34 kobo on their initial prices of
N38.10 and N6.90 per share

Banking subsector leads

Trading activities in the Banking subsector on Tuesday maintained lead
as the most active subsector with 223.69 million units valued at
N1.28billion exchanged in 3,223 deals as against the 220.21 million
units valued at N1.31billion exchanged in 2,900 deals recorded on
Monday.

The volume recorded in the subsector was driven by transaction in the shares of BankPHB,

Intercontinental
Bank, Skye Bank and Guaranty Trust Bank. The total volume of 141.71
million units valued at N722.49 million traded in the shares of the
four stocks accounted for 34.34 per cent of the entire market volume
and their value represented 28.67 per cent of the market’s value.

Market Outlook

However,
in spite of the current downturn, Bismarck Rewane, Managing Director of
Financial Derivatives Company Limited, a business consultancy firm, is
optimistic that some of the reforms by the Exchange regulator will help
improve investors’ confidence in the coming year.

Speaking at an executive meeting organised by Lagos Business School,
last weekend, Mr. Rewane said that “stricter regulations for operators
and participants in the capital market” will boost confidence next
year. He said this will “encourage greater transparency and less of
sharp practices” in the market.