Monday, 11 October 2010 00:00 By Moses Ebosele

FOR the week ended Friday, October 8, 2010, the Over-The-Counter (OTC) bond market of Nigerian Stock Exchange (NSE) recorded a turnover of 248.9 million units worth N243.4billion in 1,940 deals compared  to a total of 332.8 million units valued at N318billion exchanged in 2,864 deals during the week ended Wednesday, September 29, 2010.

As at the close of transaction on Friday, the most active bond when measured by turnover volume was the 10.00 per cent Federal Government of Nigeria (FGN) July 2030 with a traded volume of 44.9 million units valued at N37.8 billion in 383 deals. This was followed by 10.5 per cent FGN May 2012 with a traded volume of 43.3 million units valued at N46.7billion in 388 deals. Seventeen of the available thirty-six FGN Bonds were traded during the week, compared with eleven in the in the previous week.

Though there was no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors, the equities sector achieved a turnover of 2.05 billion shares worth N18 billion in 28,785 deals, in contrast to a total of 1.1 billion shares valued at N10.5 billion exchanged  in the previous week in 21,572 deals.

The Banking subsector was the most active during the week when measured by turnover volume, with 1.15 billion shares worth N9.45 billion exchanged by investors in 15,293 deals. Volume in the Banking subsector was lifted by activity in the shares of Diamond Bank Plc, Access Bank Plc, Guaranty Trust Bank Plc, First Bank of Nigeria Plc and First City Monument Bank Plc.

Trading in the shares of the five Banks accounted for 699.31 million shares, representing 60.82 per cent and 34.1 per cent of the subsector’s turnover and total volume traded during the week, respectively.

The Insurance subsector, boosted by activity in the shares of Goldlink Insurance Plc and Staco Insurance Plc, followed on the week’s activity chart with a turnover of 372.43 million shares valued at N227.11 million in 971 deals.

On the price movement chart, the NSE All-Share Index appreciated by 721.81 points or 3.17 per cent to close on Friday at 23,772.40 while the market capitalisation of the 199 First -Tier equities increased to N5.82 trillion.
Also, the NSE-30 Index appreciated by 30.54 points or 3.19 per cent to close at 1,007.34. in the previuos week, ASI and NSE-30 Index appreciated by 1.61 per cent  and 2.43 per cent, respectively.

Three of the four sectorial indices appreciated during the week, compared with two that appreciated in the preceding week. The NSE Food/Beverage Index appreciated by 17.28 points or 2.43 per cent to close at 735.30, the NSE Banking Index appreciated by 17.35 points or 5.2 per cent  to close at 353.64. The NSE Insurance Index appreciated by 13.63 points or 9.3 per cent to close at 154.87.

However, the NSE Oil/Gas Index depreciated by 4.96 points or 1.51 per cent to close at 324.95. Also last week, Forty-seven stocks appreciated in price during the week, higher than the twenty-nine of the preceding week.

Guinness Nigeria Plc led on the gainers’ table with a gain of N12.07 to close at N182.07 per share while Flour Mills Nigeria Plc followed with N3.75 to close at N60.85 per share.
Meanwhile, Thirty-one stocks depreciated in price during the week, lower than the forty-eight of the preceding week.

African Petroleum Plc led on the price losers’ table, dropping by N2.59 to close at N24.07 per share while UAC of Nigeria Plc followed with a loss of N2.38 to close at N37.94 per share.

Two equity prices were adjusted for dividend as recommended by the Board of Directors. Guinness Nigeria Plc was adjusted for dividend of N8.25 per share. Conoil Plc was adjusted for dividend of N1.50 per share.

Also last week,  the Chartered Institute of Stockbrokers (CIS) tribunal  sanctioned two stockbrokers for   market infractions.

Mr. Ogunbor Bright Alex and Mr. Ailenbuade Akowe Samson were said to have sometime between February 2006, in Lagos, used the machinery of Foresight Securities and Investment limited, to sell their clients shares without authorisation.

In  its judgment, CIS Tribunal under the leadership of Mr. Michael Itegboje, gave the defendants one month from last week Thursday within which to buy back and restore all the shares accrued benefits which include bonuses and dividends where applicable.

Their clients, Miss Ololade Deborah and Mr. Francis Oladoyinbo, had complained to the CIS that their 8,000 units of Guaranty Trust Bank shares, 800 units of Total Nigeria Plc shares, 1,214 units of UACN shares and 1,697 units  of First Bank of Nigeria Plc shares were sold without their knowledge, consent or authority.

The sanctioned brokers were also said to have during the period mentioned above, using the machinery of Foresight Securities and Investment Limited, failed to verify a purported letter of authority/mandate sent by their client before proceeding to sell the shares.

The CIS also accused the defendants of paying the proceeds of the sale of Ololade Deborah and Francis Oladoyinbo shares to a third party (Mrs. Bose Dinyo) instead of paying the right owner.

“As a result, you have committed an offence contrary and punishable under regulation 5(vi) and 6(a) (ii) of the members regulations and code of conduct (2005) and section 11 (i) (a) of the CIS Act 105 of 1992.

“That having seen and considered the evidence adduced and having heard the plea of not guilty to counts 1, 2, 3, the CIS finds . Ogunbor Bright Alex and Mr. Ailenbuade Akowe Samson, guilty of all charges,” the CIS said.

Source: Guardian