By Udeme Ekwere
Thursday, 11 Nov 2010
The positive trend, which began in equity trading on the Nigerian Stock Exchange on Tuesday continued on Wednesday with major indicators rising marginally.
The NSE Banking Index, which stood at 380.80 points on Tuesday, rose by 2.6 per cent or 9.79 points to 390.59 on Wednesday.
This was as a result of price appreciation in banking stocks, with 19 stocks out of the 21 traded in the sub-sector, recording gains.
Experts traced the development to plans by the Asset Management Corporation of Nigeria to buy off over N2.2tn toxic assets in the financial system.
According to them, the commencement of AMCON’s operations has encouraged investment and returned some confidence to the market.
Most banking stocks, especially the rescued banks, rose by almost five per cent, on Tuesday. For instance, Oceanic Bank International Plc, Intercontinental Bank Plc, and Finbank Plc rose by 4.7 per cent each.
Union Bank of Nigeria Plc, Bank PHB Plc, Afribank Plc and Wema Bank Plc rose by 4.9 per cent, 4.5 per cent, 4.8 per cent and 4.6 per cent, respectively.
No banking stock recorded losses.
In the banking sub-sector, 300.93 million shares, valued at N2.395bn were exchanged by investors in 3,259 deals. Trading in the sub-sector accounted for 54 per cent of the total volume traded.
Activity in the sub-sector was driven by trading in the shares of Union Bank of Nigeria Plc, Zenith Bank Plc, First Bank of Nigeria Plc and United Bank for Africa Plc.
Meanwhile, the market capitalisation of the listed equities, which rose by N210bn the preceding day, increased further, by N10bn or 0.12 per cent, from N8.106tn to close at N8.116tn.
Similarly, the NSE‘s All-Share Index rose by 0.13 per cent or 32.84 points to close at 25,416.21, up from 25,383.37 the previous day.
Nigerian Breweries Plc recorded the highest price appreciation of the day, rising by 2.6 per cent or N1.97 to close at N78.97 per share.
Lafarge WAPCO Plc followed with a gain of 3.7 per cent or N1.49 to close at N42 per share.
On the other hand, Dangote Cement Plc, which was listed at N135 per share last month, recorded the highest loss, shedding five per cent to close at N127.94 per share.
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Source: Punch