Stock market activities remain unstable
Trading activities at the Nigerian Stock Exchange (NSE) were characterised by varied performances this week as market indicators continued their unsteady movements.
The market capitalisation appreciated in value at the close of trading on Thursday after it declined the previous day. The market capitalisation of the 194 First-Tier equities closed yesterday at N7.906 trillion after opening the day at N7.862 trillion, reflecting 0.56 per cent or N44 billion gains. The Exchange had recorded gains also on Tuesday before plunging the following day.
Stockbrokers at GTI Capital, a stockbroking firm, said: “Uncertainty pervaded the equity market because the oscillatory trend continued to hold sway in the market amid political uncertainty. The market had failed to attain a steady rally in succession for five days in the past one month. This shows strong weakness in the economic space burden with political uncertainty.”
A total of 32 stocks appreciated in price on Thursday higher than the 28 recorded the previous day, while 21 stocks depreciated in value higher than the 18 of Wednesday. First Aluminium Nigeria and Ecobank Transnational Incorporated topped the price gainers’ table with an increase of five per cent and 4.97 per cent, to close at 63 kobo and N16.27 per share, respectively. On the flip side, Union Bank of Nigeria and Cement Company of Northern Nigeria led on the price losers’ chart with a loss of 4.95 and 4.94 per cent respectively, to close at N3.07 and N10.78 per share.
Financial results
Meanwhile, despite the fact that more quoted companies released good results, market capitalisation remains wobbly. Dangote Cement, on Wednesday, posted significant improvement in its audited financial result for the year ended December 31, 2010. The company, which was listed at the Exchange last October after acquiring Benue Cement Company, posted a profit after tax of N106.605 billion in 2010, from a profit after tax of N47.251 billion in 2009, reflecting a 125.61 per cent increase. Dangote Cement’s turnover in the period in view also increased by 56.06 per cent, from N129.797 billion to N202.565 billion.
The company’s board of directors proposed a dividend of N2.25 per share for its shareholders. The bank’s share will be marked for payment on the 27th of April while the cash will be disbursed on the 25th of May. The stock price of Dangote Cement remained unchanged yesterday at N125.50 per share after the announcement.
Fidelity Bank posted a 2010 pre-tax profit of N8.65 billion, more than four times the N2.05 billion pre-tax profit it made in 2009. Turnover in the period rose to N56 billion from N35 billion a year earlier.
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