By Udeme Ekwere

Saturday, 29 Jan 2011

Losses incurred by rescued banks in the Nigerian Stock Exchange on Friday accounted for the decline recorded in trading activities.

Analysts said this was as a result of investors’ attempt to take profit from some of the gains the rescued banks made in the last few weeks.

Among the rescued banks, Unity Bank Plc recorded the highest loss, shedding 4.9 per cent or nine per cent to close at N1.72 per share.

Wema Bank Plc also lost 4.79 per cent or eight kobo to close at N1.59 per share.

Finbank Plc, another rescued bank, lost 4.1 per cent or five kobo to close at N1.16 per share.

Intercontinental Bank Plc and Oceanic Bank International Plc lost 1.9 per cent and 1.3 per cent to close at N2.55 and N3.79 per share respectively.

Other banking stocks also recorded marginal losses, with First Bank of Nigeria Plc and First City Monument shedding 2.4 per cent each to close at N15.50 and N8.00 per share in that order.

This led to a significant decline of one per cent or 4.39 points in the NSE Banking Index, which dropped from 447.85 points to close at 443.46 points.

The NSE-30 Index also fell by 0.5 per cent or 6.59 points from 1,209.64 points to 1,203.05 points.

Major market indicators continued on the downward slide with the NSE’s All-Share Index falling by 0.8 per cent or 212.37 basis points to close at 27,356.59, from 27,568.96 recorded the preceding day.

Similarly, the market capitalisation of the listed equities fell by 0.8 per cent or N68bn from N8.812tn the previous day to close at N8.744tn.

Meanwhile, banking sub-sector maintained its lead on the activity chart, with investors exchanging 247.643 million shares, valued at N1.726bn in 3,913 transactions.

Activities in the sub-sector accounted for 68 per cent of total volume and 50 per cent of value traded on Friday.

The turnover in the sub-sector was driven by the trading in the shares of Intercontinental Bank, United Bank for Africa Plc, and Access Bank Plc.

Nigerian Bags Manufacturing Company Plc recorded the highest price appreciation of the day, rising by 4.9 per cent or 17 kobo to close at N3.60 per share.

Guaranty Trust Assurance Plc also gained 4.9 per cent or nine kobo to close at N1.91 per share.

 

Source: Punch