Nigeria Content Online

The
Nigerian Stock Exchange recorded a total gain of N2.334 trillion on
equities at the close of trading activities in October, showing the
improvement of some key market indicators on the upturn.

The
market value of the 214 listed equities, which opened the month at
N5.648 trillion, closed on the last trading day in October at N7.982
trillion, reflecting a N2.334 trillion gains, or a 41.32 percent
increase. Also, the NSE All-Share Index, which opened at 23,050.59
basis points, closed the month at 25,042.16, an increase of 1,991.57
units or 8.64 percent, as against the decline of 1,217.65 points or 5.1
percent recorded in September.

The
Exchange’s strategy and business development department said the
increase in market capitalisation in October can be attributed largely
to the listing of Dangote Cement in the Building Materials subsector.

“Other factors included the listing of Kaduna State Bond and the increase in equity prices,” it said.

The
Exchange also said the stock market recorded a 10-month growth rate of
55.4 percent and 40.8 percent in equity market capitalisation and
aggregate market capitalisation.

Market turnover

The
market recorded a turnover of 6.71billion shares, valued at N90.6
billion, in 117,203 deals during October, in contrast to a total of
4.84 billion shares, valued at N47.25 billion, exchanged during
September in 117,366 deals.

Consequently,
trading volume and value rose by 39 percent and 92 percent, while the
number of executed trades dropped by 0.1 percent, when compared with
September. The value of trades had in September rose by 0.7 percent,
while the trading volume dropped by 8.1 percent.

Aggregate
stock market turnover between January and October 2010 were 79 billion
shares, valued at N670.42 billion, exchanged in 1,677,550 deals. In the
comparable period during 2009, the market recorded turnover of 85.94
billion shares, valued at N582 billion, in 1,504,778 deals.

Measuring
by turnover volume, the Banking subsector was the most active in
October, with traded volume of 3.9 billion shares valued at N30.81
billion, while the Insurance subsector was second, with traded volume
of 893.14 million shares, valued at N595.54 million, exchanged in 4,220
deals. The Food/Beverages subsector was third, with transaction volume
of 351.72 million, valued at N10.1 billion.

A
total of 165 equities out of the 214 listed were traded during the
month, compared with 174 in September. First Bank of Nigeria Plc was
the most active stock in October, with transaction volume of 443.82
million shares, followed by Access Bank Plc, with 404.44 million shares.

Research
team at Access Bank said, “The market would likely receive further
support from the recent creation of the Alternative Securities/Private
Placement Exchange, to replace the second-tier securities market, in a
bid to stimulate the activities of the capital market.”

Bond trading

Over-The-Counter
(OTC) bond market, a turnover of 1.1 billion units worth N1.036 billion
was recorded in October, in contrast to a total of 998 million shares
valued at N946.5 billion exchanged during the preceding month.

The
most active bond, in terms of volume, was the 10 percent Federal
Government of Nigeria (FGN) Bond July 2030 (formerly 7th FGN Bond 2030
Series 3), with traded volume 284.8 million units valued at N230.5
billion. It was followed by 9.45 percent FGN January 2013, with a
traded volume of 123.65 million units valued at N127.84 billion.