By Udeme Ekwere

Thursday, 24 Feb 2011

Selling pressure depressed trading activities on the Nigerian Stock Exchange on Wednesday, halting four days of appreciation in key indices.

Specifically, the NSE’s All-Share Index fell by 0.13 per cent or 33.21 basis points to close at 26,713.73, down from 26,747.04 recorded at Tuesday’s close.

Similarly, the market capitalisation of the listed equities closed lower at N8.538tn representing a fall by 0.13 per cent or N11bn from N8.549tn the previous day, while the NSE-30 Index slipped by 0.1 per cent from 1,174.80 to 1,174.11.

Analysts attributed the decline to the fact that investors were taking profit from the marginal appreciation recorded in most of the banking stocks in the last few trading sessions.

In their report on Monday, analysts at Meristem Securities Limited, had predicted that the rally in activities, which began in the market last Thursday, might continue to the middle of this week.

“We expect the appreciation witnessed in the last few trading sessions would continue till mid-week before profit taking sets in. However, we still maintain that the attractive rates and yields in the fixed income market may slow down growth in the equities market until quoted companies declare strong earnings in addition to good dividend and bonus,” they said.

The banking index fell by 0.2 per cent from 441.66 recorded the previous day to 440.59 points, while the NSE Food/Beverage Index slipped by 0.2 per cent to close at 874.77 down from 876.11 recorded on Tuesday.

A total of 256.511 million banking stocks, valued at N1.398bn, were exchanged by investors on 4,753 transactions. Trading in the sub-sector drove total turnover, as it accounted for 65 per cent of total volume.

Trading in the shares of Bank PHB Plc and Intercontinental Bank drove volume in the sub-sector.

Ecobank Transnational Incorporated Plc led the price gainers, with a gain of 4.9 per cent or 80 kobo to close at N17.00 per share.

Commercial services stock, Red Star Express Plc, followed on the chart, rising by 4.4 per cent to close at N3.30 per share, while RT Briscoe Plc and Guaranty Trust Assurance Plc gained 4.3 per cent and four per cent to close at N3.13 and N1.81 per share respectively.

On the losers’ chart, FTN Cocoa Plc led the chart, shedding five per cent or three kobo to close at 57 kobo per share, while NCR (Nigeria) Plc fell by five per cent to close at N6.27 per share.

 

Source: Punch