Nigeria Content Online

The Nigerian Stock
Exchange recorded a total loss of N449 billion on equities at the close
of trading activities in March, after recording significant losses of
N260 billion in the preceding month.

The market value of
the 217 listed equities, which opened the month at N8.315 trillion,
closed on the last trading day in March at N7.866 trillion, reflecting
a N449 billion loss or 5.39 per cent decline.

The Exchange
attributed the downturn in stock market activities to the decline in
investors’ confidence, but said efforts are being made to fully restore
confidence in the system.

Femi Oladehin, vice
president and managing director of BGL Limited, an investment bank,
said political risks in the country and the crisis in the Middle East
and North Africa region contributed to the withdrawal of funds by some
foreign investors from the market.

He said uncertainty
remains in the market this quarter because “significant contributors of
trading in the Nigerian market are foreign investors as against local
investors.”

In the mean time,
market watchers have predicted that if elections are peaceful, the
Exchange will start recording stable rebound early May.

Daisy Ekineh, an
executive commissioner at the Securities and Exchange Commission (SEC),
said recently that the SEC’s key plan this year is to deepen the market
by “promoting more listings in the oil and gas, telecom companies,
small scale enterprises, and privatised enterprises.”

Mrs Ekineh also
said that the commission is working on reducing transaction cost in
primary offering and secondary offering in particular to further
attract more companies to the market.

Market turnover

While the official
turnover of transaction for the month is yet to be released, the market
recorded a turnover of 6.5 billion shares valued at N60.61 billion
during February, in contrast to a total of 10.84 billion shares valued
at N104.1 billion exchanged during January.

Aggregate stock
market turnover between January and February were 17.334 billion shares
valued at N164.7 billion exchanged in 259,427 deals.

In the comparable
period during 2010, the market recorded turnover of 16.14 billion
shares valued at N100.8 billion in 429,306 deals.

Measuring by
turnover volume, the Banking subsector was the most active in February
with traded volume of 4.5 billion shares valued at N37.3 billion, while
the Insurance subsector was second with traded volume of 450.23 million
shares valued at N666.9 million. The Maritime subsector was third with
transaction volume of 218.41 million valued at N390.56 million.

Over-The-Counter
bond market, a turnover of 926.1 million units worth N841.05 billion
was recorded in February 2011, in contrast to a total of 875.62 million
shares valued at N801.134 billion exchanged during the preceding month.