By Udeme Ekwere

Tuesday, 16 Nov 2010

The negative trend, which began in the equities sector of the Nigerian Stock Exchange last Thursday, continued on Monday with major indicators recording losses.

The NSE Banking Index, which stood at 398.94 points on Thursday, fell by 2.6 per cent or 10.31 to close at 388.65 points.

This was as a result of price depeciation in banking stocks. Twelve stocks out of the 21 traded in the sub-sector, recorded losses.

Experts attributed the development to profit taking activities of investors, especially as the Muslims prepare for the Eid-el-Kabir celebrations.

Most banking stocks, especially the rescued banks, dropped by almost five per cent. For instance, Oceanic Bank International Plc, Union Bank of Nigeria Plc and Afribank Plc fell by five per cent each.

Sterling Bank Plc, Intercontinental Bank Plc, Zenith Bank Plc, Fidelity Bank Plc and Ecobank Plc, fell by 4.9 per cent, 4.8 per cent, 4.7 per cent, 4.6 per cent and 4.4 per cent respectively.

Eight banking stocks, however, recorded marginal price appreciation.

In the banking sub-sector, 178.659 million shares, valued at N1.055bn were exchanged by investors in 3,674 deals. Trading in the sub-sector accounted for 70 per cent of total volume traded.

Activity in the sub-sector was driven by trading in the shares of Oceanic Bank International Plc, First Bank of Nigeria Plc, Fidelity Bank Plc and Unity Bank Plc, which accounted for 41 per cent of the sub-sector‘s turnover.

Meanwhile, the market capitalisation of the listed equities fell by 0.3 per cent from N8.10tn to close at N8.08tn.

Similarly, the NSE‘s All-Share Index fell by 0.3 per cent or 66.49 points to close at 25,367.34, down from 25,301.34 on Friday.

Flour Mills Nigeria Plc recorded the highest price appreciation of the day, rising by 0.4 per cent to close at N68.50 per share.

Oando Plc followed with a 0.4 per cent gain to close at N67 per share, while Vitafoam Plc and Dangote Sugar Plc gained 3.2 per cent and 1.1 per cent to close at N6.19 and N17.20 per share respectively.

On the other hand, Cadbury Nigeria Plc might lost 4.3 per cent to close at N27.80 per share.

Source: Punch