By Udeme Ekwere   Thursday, 27 Jan 2011

After five consecutive days of gains, major market indicators of the Nigerian Stock Exchange, on Wednesday, recorded marginal losses.

The NSE’s All-Share Index fell by 0.1 per cent or 27.87 basis points from 27,797.39 the previous day, to 27,769.52.

The market capitalisation of listed equities also dropped by 0.1 per cent or N9bn to close at N8.876tn, down from N8.885tn the preceding day.

The NSE-30 Index shed 1.35 basis points, from 1,221.10 to close at 1,219.75 basis points.

A market analyst, Mr. David Adonri, told our correspondent that the marginal loss was due largely to liquidity squeeze induced by the sale of treasury bills by the Central Bank of Nigeria this week. This, according to him, is reflected in the low volume of activities on Wednesday.

The slide in activities was also traced to the declines in the banking sub-sector, especially the rescued banks, which had been improving with the commencement of activities of the Asset Management Company of Nigeria’s activities.

Of the nine banking stocks that recorded losses, four were rescued banks.Intercontinental Bank Plc recorded the highest loss in the sub-sector, dropping by 4.5 per cent or 13 kobo to close at N2.70 per share.

Afribank Plc followed, with a loss by N2.7 per cent or nine kobo to close at N3.15 per share.

Unity Bank Plc fell by 1.04 per cent or two kobo to close at N1.90 per share, while Bank PHB Plc dropped by 0.9 per cent or two kobo to close at N2.16 per share.

Even though the NSE Banking Index fell by 0.1 per cent or 0.28 points from 456.19 to close at 455.91 points, the sub-sector maintained its lead on the activity chart.

Investors staked N2.110bn on 263.93 million banking shares in 3,928 transactions.

Trading in the sub-sector accounted for 77 per cent of turnover and 68 per cent of value traded on Wednesday.

Volume in the sub-sector was driven by trading in the shares of Finbank Plc, First Bank of Nigeria Plc, Access Bank Plc and Zenith Bank Plc.

Julius Berger Nigeria Plc gained five per cent or N2.55 to close at N53.55 per share. It led 36 other stocks on the gainers chart.

University Press Plc also gained five per cent or 31 kobo to close at N6.51 per share, while African Petroleum Plc rose by 4.9 per cent to close at N27.33 per share.

Source: Punch