Banks’ stocks drive turnover in bearish trading


By Ademola Alawiye   Thursday, 9 Sep 2010

Transaction volume at the equities sector of the Nigerian Stock Exchange was dominated by the banking sub-sector on Wednesday.


Trading in banking shares accounted for 55 per cent of total turnover, as 117.83 million shares, valued at N1.01bn were exchanged in 3,458 deals.


According to a market analyst, who spoke to our correspondent in a telephone interview, the turnover was driven by a cross deal.


He defined cross deal as an exchange of stakes between existing and new strategic investors.


The insurance sub-sector followed on the activity chart, accounting for 11 per cent of total turnover. Investors staked a total of N19.21m on 23.32 million shares in 283 deals.


Trading in the shares of NEM Insurance Plc, International Energy Insurance Plc and AIICO Insurance Plc drove volume in the sub-sector.


Meanwhile, the NSE‘s All-Share Index dropped by 0.48 per cent or 115.32 points to close at 23,802.79 points, down from 23,918.11 recorded on Tuesday.


Similarly, the market capitalisation of the listed equities declined by 0.48 per cent or N28bn, from N5.86tn on Tuesday, to close at N5.83tn.


The NSE-30 Index also depreciated by 0.40 per cent or 3.98 points to close at 994.19, from 998.17 points recorded the previous day.


The NSE Banking Index closed at 344.50 points, representing a 0.81 per cent or 2.8 points decline, from 347.30 points, while the NSE Insurance Index rose by 0.08 per cent and 0.14 points to close at 171.74 points.

Nestle Nigeria Plc recorded the highest gain for the day, rising by 1.1 per cent or N4.00 to close at N375.00 per share.


Nigerian Breweries Plc followed on the gainers‘chart with an increase of 3.4 per cent or N2.38 to close at N72.38 per share, while African Petroleum Plc recorded a five per cent or N1.48 gain to close at N31.26 per share.


Seven-up Bottling Company Plc led the losers‘chart, down by 4.2 per cent or N2.10 to close at N47.90 per share, while Nigerian Bottling Company Plc recorded a five per cent or N1.91 decline to close at N36.29 per share. Lafarge Wapco Plc followed with a 2.3 per cent or 89 kobo loss, to close at N37.11 per share.


Source: The Punch



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