By Udeme Ekwere and Temitope Adepetu

Friday, 4 Feb 2011

Market indices closed lower on the Nigerian Stock Exchange on Thursday as major banking stocks recorded losses.

The key benchmark indices, which had improved the preceding day, dipped as a result of huge sell-offs witnessed in banking, insurance and other major sectors.

Specifically, the NSE’s All-Share Index, which gained 0.8 per cent to close at 26,928.67 the preceding day fell by 33.32 basis points or 0.1 per cent on Thursday to close at 26,895.35.

Also, the market capitalisation of the listed equities fell by N11bn or 0.1 per cent from N8.607tn to close at N8.596tn, while the NSE-30 Index lost 1.83 points or 0.2 per cent to close at 1,174.11 points.

The Managing Director, Ideal Securities Limited, Mr. George Okafor, told our correspondent that the lull in the market was as a result of bargain hunting by investors.

He said that the losses could also be traced to the recent suspension of some stockbroking firms by the NSE.

The losses recorded in activities was mainly borne by stocks in the banking sub-sector with major banking stocks losing marginally.

For instance, the huge volume recorded on the stocks of Zenith Bank Plc, First Bank of Nigeria Plc, Oceanic Bank International Plc, Unity Bank Plc and Guaranty Trust Bank Plc dragged down indices.

Transaction on the five stocks accounted for 57.94 per cent and 63.51 per cent of volume and value traded respectively.

For instance, GTBank, Union Bank of Nigeria Plc, Ecobank Plc and United Bank for Africa Plc dropped by 1.5 per cent, 4.2 per cent, 3.4 per cent and 1.1 per cent respectively.

Investors in the banking sub-sector exchanged 353.27 million shares, valued at N3.421bn in 3,983 deals, thus accounting for 80 per cent of total volume traded on Thursday.

Consequently, the NSE Banking Index, which had gained 1.8 per cent the previous day, fell by 0.3 per cent or 1.54 basis points from 440.89 to close at 439.35 points.

Okomu Oil Palm Plc led on the price gainers’ chart, rising by five per cent or 73 kobo to close at N15.33 per share.

African Petroleum Plc gained five per cent or N1.25 to close at N26.25 per share.

May and Baker Plc and NEM Insurance Plc also gained 4.9 per cent each to close at N5.27 and 64 kobo per share respectively.

Source: Punch