By Udeme Ekwere

Thursday, 4 Nov 2010

Investors in the Nigerian capital market have lost a total of N100bn in the last three days.

The market capitalisation of the listed equities fell by 1.3 per cent from the N8.013tn recorded on Monday, to N7.913tn, translating into a loss of N100bn.

Similarly, the Nigerian Stock Exchange‘s All-Share Index also dropped by 1.3 per cent or 319.3 points to 24,782.90, down from 25,102.20 recorded on Monday.

Experts traced the development to the massive sell-offs by investors in the last few days, following the impressive third-quarter results declared by companies, especially the banks.

According to analysts from Meristem Securities Limited, ”Following the rewarding October results, which increased the market return benchmark by 8.6 per cent, relative to that of last month, the pricing rally witnessed in the last few weeks is expected to slow down as the earnings season rounds-off.”

Meanwhile, African Petroleum Plc recorded the highest loss at the close of trading, shedding five per cent or N1.31, from N26.25 to N24.94 per share.

Ashaka Cement Plc followed with a loss of 3.9 per cent or 91 kobo, from 23.37 to N22.66 per share, while Ecobank Transnational Incorporated Plc lost 4.6 per cent or 74 kobo to close at 15.26 per share.

Okomu Oil Palm Plc led the price gainers, rising by 4.9 per cent or 70 kobo from N14.25 to N14.95 per share.

The improvement followed its 97.1 per cent increase in after tax profit in the third quarter ended September 30, 2010.

Oando Plc followed on the chart with a gain of 0.8 per cent or 50 kobo to close at N64 per share, while University Press Plc and National Salt Company Nigeria Plc gained 4.8 and 4.7 per cent to close at 6.28 and N5.97 per share, respectively.

Activities in the banking sub-sector continued to drive total volume, as it accounted for 55 per cent of turnover.

Trading in the shares of Zenith Bank Plc, United Bank for Africa Plc and Access Bank Plc drove turnover in the sub-sector, accounting for 35 per cent of traded volume.

In all, investors staked N1.930bn on 253.229 million equities, in 6,200 transactions, as against 277.004 million shares, worth N2.659bn traded the preceding day in 5,712 deals.

 

Source: Punch