Stock market registers weak trade
Trading activities at the Nigerian Stock Exchange (NSE) opened the week on a negative note as the market could not sustain the positive performance recorded last Friday.
At the close of Monday’s trading, the NSE market capitalisation, which gained N10 billion on the last trading day, depreciated by N39 billion to close at N5.901 trillion from N5.940 trillion. This reflects a decline of 0.65 percent. The Exchange’s All-Share Index was also down by 0.65 percent or a decline of 156.69 units, from 24,241.84 basis points to 24,085.15.
Analysts at Resource Cap, a portfolio management company, said the downturn trend could be attributed to the weak investors’ sentiments in the market.
Also, Equity Research team at Proshare Nigeria, an investment advisory firm, said, “The current trend stands as manifestation of uncertainties and issues that pervaded market last month, coupled with low liquidity and unwillingness of investors.”
However, they said the planned listing and merger of the Dangote Cement Group with an estimated valuation of N2 trillion “should impact the market capitalisation and serve as an encouragement for attracting telecom and energy sector firms to the exchange.”
Low gainers
At the close of Monday’s trading, a total of 17 stocks appreciated in value, lower than the 34 stocks recorded last Friday; while 33 stocks depreciated in value, higher than the preceding day’s 31.
African Petroleum and Guinness Nigeria topped the price gainers’ table with an increase of N1.56 and 90 kobo on their opening prices of N31.26 and N164.10 per share respectively. On the flip side, Nigeria Breweries and Benue Cement Company led the price losers’ chart with a loss of N2.63 and N1.94, to close at N69.75 and N63.06 per share respectively.
The banking subsector maintained its lead as the most active with 80.513 million quantities of shares, valued at N610.772 million, as against the 141.00 million units valued at N1.07 billion recorded on Friday. The subsector’s volume was driven by shares of Guaranty Trust and First Bank.
The maritime subsector was second in the chart with 51.371 million shares worth N62.300 million. The subsector’s volume was largely driven by Japaul Oil & Maritime Services. Trading activities in the insurance subsector followed, with 33.193 million shares valued at N42.448 million. Volume in the subsector was boosted by deals in shares of Law Union and Rock Insurance, Custodian and Allied Insurance, and Equity Assurance.
Meanwhile, the Exchange’s management, on Monday, marked down the price of University Press for a dividend of 40 kobo per share and a bonus one for every five owned by its shareholders. The dividend payment date is 30th of September 2010. Also, the price of NEM Insurance was marked down for a dividend of 4 kobo, while payment date is 12th of October.
At the trading floor yesterday, Seven-Up Bottling Company presented an audited financial result for the year ended March 31st, 2010. The result shows a 17.80 percent increase in turnover, from N34.864 billion to N41.069 billion; and an increase of 23.70 percent in profit after tax, from N1.529 million to N1.892 million.
The company’s board of directors proposed a dividend of N1.75 kobo per share and a bonus of one for every four owned by its shareholders.
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