By Udeme Ekwere

Thursday, 17 Feb 2011

The downward trend recorded in equity trading on the Nigerian Stock Exchange continued after the Eid-el-Maulud break with market indicators closing lower.

Analysts traced the lull in activities to the diversion of funds from the capital market to the money market due to the ongoing sale of bonds by the Debt Management Office.

The market capitalisation of the listed equities fell by N41bn or 0.5 per cent from N8.501tn to close at N8.460tn.

Similarly, the NSE’s All-Share Index dipped by 129.83 basis points or 0.5 per cent to 26,468.58 points, down from 26,598.41 on Monday.

The NSE-30 Index stood at 1,154.64 points, representing a decrease of 0.6 per cent or 6.64 basis points from 1,160.28 recorded on Monday.

The NSE food/beverages index and the banking Index fell by 0.3 per cent and 0.7 per cent to close at 837.28 and 435.04 points respectively.

The NSE Insurance Index, however, lost the highest, shedding 2.4 per cent or 4.33 basis points from 182.97 to close at 178.64 points.

In all, investors staked N3.29bn on 427.07 million shares, in 6,789 transactions.

Volume was driven by trading in the banking sub-sector as investors exchanged 157.70 million shares, worth N1.428bn in 3,544 deals, thus accounting for 37 per cent of volume.

Turnover in the sub-sector was driven by trading in the shares of Zenith Bank Plc, First Bank of Nigeria Plc, Sterling Bank Plc and Oceanic Bank International Plc.

The insurance sub-sector followed on the chart, with investors exchanging 130.856 million shares, valued at N374.38m in 428 deals.

Trading in the shares of Custodian and Allied Insurance Plc drove volume in the sub-sector, representing 79 per cent of turnover.

Niger Insurance Plc recorded the highest price appreciation for the day, rising by 4.8 per cent or four kobo to close at 86 kobo per share.

RT Briscoe Plc gained 4.8 per cent or 14 kobo to close at N3.03 per share.

Three banking stocks – Sterling Bank Plc, Wema Bank Plc and Afribank Plc – rose by 4.7 per cent, 4.6 per cent and 4.2 per cent respectively.

On the other hand, Unilever Nigeria Plc recorded the highest loss for the day, shedding five per cent or N1.50 per share to close at N28.50 per share.

May and Baker Nigeria Plc dropped by 4.9 per cent or 28 kobo to close at N5.33 per share.

Conoil Plc, United Bank for Africa Plc, Okomu Oil Palm and Lafarge Wapco Plc fell by 4.9 per cent each.

Source: Punch