By Udeme Ekwere   Tuesday, 28 Sep 2010

 

The attractive money market rates continued to lure investors on Monday, thus deepening the current bearish trend in the stock market.

 

This was the position of capital market analysts from Proshare Nigeria, on Monday.

 

According to them, ”The attractive rate in the money market arising from the increase in key rates could also be partly responsible for the bearish outlook as depositors are currently negotiating for a premium from banks.

 

”Also, the reformation process going on in the Nigerian capital market, which is about to create a new market is inevitable. This has possibly increased the volatility in the market.”

 

A look at the figures at the close of trading on Monday, showed that the NSE‘s All-Share Index dipped by 1.24 per cent or 281.59 basis points, from 22,689.09 recorded last Friday, to 22,407.50.

 

The market capitalisation of the listed equities closed at N5.491tn, representing a decrease of 1.24 per cent or N69bn down from N5.56tn recorded last week.

 

All other sectoral indices also recorded significant declines, with the NSE 30, which measures the performance of blue chips in the market, dropping by 1.1 per cent to close at 942.87. The NSE Banking index dropped by 1.6 per cent from 327.82 to close at 322.56, while the food and beverages index dropped by 0.4 per cent, from 709.94 to 707.23 points.

 

Seven-Up Bottling Company Plc had the highest price loss for the day, shedding five per cent or N2.03 to close at N33.81 per share. It led 47 other companies on the chart.

 

Building material company stock – Benue Cement Company Plc – followed on the chart, losing 2.9 per cent or N2 to close at N66 per share, while CAP Plc and Lafarge WAPCO Plc lost five per cent and 3.9 per cent to close at N31,76 and N36.51 per share respectively.

 

On the flip side, Nigerian Breweries Plc recorded the highest price appreciation for the day, with a gain of 0.5 per cent or 32 kobo to close at N69.52 per share.

 

National Salt Company of Nigeria also gained 24 kobo or 4.2 per cent to close at N6 per share.

 

Trading in the banking sub-sector drove total turnover, accounting for 41 per cent of total volume.

 

Turnover in the sector was driven by the shares of First City Monument Bank Plc and First Bank of Nigeria Plc.

 

Source: The Punch