By Udeme Ekwere

Wednesday, 9 Feb 2011

Selling activities depressed trading volume on the Nigerian Stock Exchange on Tuesday as key indices continued on a downward slide.

Specifically, the NSE’s All-Share Index dropped by one per cent or 259.31 basis points to close at 26,413.26, down from 26,672.57 recorded on Monday.

Similarly, the market capitalisation of the listed equities closed lower at N8.442tn, representing a fall by one per cent decrease from N8.525tn.

The NSE-30 Index 0.2 per cent or 1.8 basis points to 1,166.19, down from 1,167.99 recorded the previous day.

Market watchers and analysts attributed the decline to the profit taking activities of investors as well as a general loss of confidence in the market.

The banking sub-sector suffered major losses as 13 out of 21 stocks in the sub-sector recorded price depreciation.

Afribank Plc fell by five per cent or 15 kobo to close at N2.85 per share; Oceanic Bank International Plc and Intercontinental Bank Plc dropped by 4.8 per cent each to close at N3.31 and N2.75 per share respectively.

Other banks that recorded losses included Finbank Plc, Bank PHB Plc, Union Bank Plc, Diamond Bank Plc and Zenith Bank Plc.

However, large trading in banking stocks boosted activities in the sub-sector with investors exchanging 301.93 million banking shares, valued at N3.41bn in 3,933 deals. Trading in the banking sub-sector accounted for 81 per cent of total turnover.

This led to an increase of 0.8 per cent or 3.46 points in the NSE Banking Index, from 436.10 the previous day, to 439.56 points.

The NSE Insurance Index and the food/beverages Index also dropped by 2.1 per cent and 0.8 per cent to close at 183.44 and 844.15 points respectively.

First Bank of Nigeria Plc recorded the highest gain, rising by five per cent or 75 kobo to close at N15.75 per share.

Seven-Up Bottling Company Plc and Champion Breweries Plc rose by 4.9 per cent and 4.8 per cent to close at N42.99 and N2.82 per share respectively.

Nigerian Bags Manufacturing Company Plc, on the other hand, lost the highest, shedding five per cent or 16 kobo to close at N3.04 per share.

Meanwhile, the NSE has announced plans to restrict movement on the Exchange.

In a message signed by the management of the NSE, through the internal messaging system of market operators on Tuesday, the stockbrokers were advised to send in the names of their staff for a verification process.

Source: Punch