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BEARISH TREND TAKES OVER STOCK MARKET, THREATENS MARKET CONFIDENCE

By NBF News
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Indicators down by 3.14%
The declining trend on the Nigerian Stock Exchange (NSE) continued last week, deflating activities all through the week as well as threatening investors' confidence.

In view of this, a lot of concern has been raised about the markets abnormal swing causing trade in shares to move a step forward and three steps backward. .

However, the market indicators used in measuring the performance indices, the market capitalisation and the All share index depreciated by 3.14 per cent each.

Specifically, the capitalisation dipped by 263.16 billion to close at N8.104 trillion from N8.368 trillion at which it opened during the week under review, while the index shed 823.34 bases points to close at 25,357.84 points from 26,181.18 points.

Nestle Nigeria Plc led 75 other stocks on the price losers' table, dropping by N18.95 or 4.12 per cent to close at N441.05 per share, Dangote Flour Mills Plc followed with a loss of N3.28 or 17.36 per cent to close at N15.61 per share and Nigerian Breweries Plc dipped by 2.48 or 3.3 per cent to close at N73.52 per share.

Other share price losers include: Nigerian Bottling Company Plc N2.05, Dangote Cement Plc N2.00,

Cement Company of Northern Nigeria Plc N1.96, Ashaka Cement Plc N1.80, UAC of Nigeria Plc N1.29, Dangote Sugar Refinery Plc N1.24, among others.

On the contrary, Chemical and Allied Products Plc led on the gainers' table with a gain of N1.66 or 4.65 per cent to close at N37.39 per share, 7-Up Bottling Company Plc followed with a gain of N1.50 or 3.45 per cent to close at N45.00 per share and Flour Mills of Nigeria Plc garnered N0.99 or 1.2 per cent to close at N83.99 per share.

Other share price gainers' include: Champion Breweries Plc N0.50, Prestige Assurance Company Plc N0.26, Vono Products Plc N0.14, Poly Products Plc N0.14, Cadbury Nigeria Plc N0.09, Custodian and Allied Insurance Plc N0.09, May and Baker Nigeria Plc N0.06, among others.

A turnover of 1.373 billion shares valued at N9.63 billion was recorded in 29,955 deals in the week under review, in contrast to the previous week's turnover of 1.966 billion shares valued at N18.51 billion exchanged last week in 33,509 deals.

The Banking sub-sector was the most sought after on the sectorial analysis accounting for 123.89 million shares valued at N96.85 million in 712 deals, Intercontinental Bank Plc followed with the exchange of 94.36 million shares valued at N210.16 million in 641 deals and First Bank of Nigeria Plc recorded 84.07 million shares valued at N1.26 billion in 3,479 deals.

The Insurance sub-sector followed on the sectorial analysis accounting for 7.42 per cent of the market turnover with 102.02 million shares valued at N101.67 million in 1,136 deals. Continental Reinsurance Plc boosted activities in the sub-sector trading 24,520 million shares valued at N25.88 million in 41 deals, AIICO Insurance Plc followed with the exchange of 18.89 million shares valued at N18.95 million in 517 deals and Intercontinental WAPIC Insurance Plc recorded 11.54 million shares valued at N6.27 million in 75 deals.

All four sectorial indices depreciated during the week compared with one that so depreciated during the preceding week. The NSE Food/Beverage Index depreciated by 39.99 points or 4.61 per cent to close at 841.35, the NSE Banking Index depreciated by 15.42 points or 3.65 per cent to close at 413.08, the NSE Insurance Index depreciated by 7.57 points or 4.15 per cent to close at 177.56, the NSE Oil/Gas Index depreciated by 0.22 points or 0.06 per cent to close at 346.67.

Meanwhile, Transnational Corporation of Nigeria (Transcop) Plc has notified the Exchange

that it has signed a farm-in agreement with SacOil (a listed company on the Johannesburg Stock Exchange and has a market capitalization of approximately 105 million pounds) whereby SacOil has acquired a 20% Participating Interest in OPL 281 and under the OPL 281 PSC located onshore in the western delta region of Nigeria and adjacent to the widely published shell divestment block OML42. SacOil's Nigerian partner, EER 281 Nigeria Limited, a wholly owned Nigerian subsidiary of EER has also executed the same farm-in agreement to acquire an additional 20 % participating interest in OPL 281and under the OPL 281 PSR, with Transcorp retaining the remaining 60 % The total farm-in fees of over US$30 million, in respect of the acquisition is to be paid by SacOil in several tranches following the attainment of certain milestones. The joint venture will carry 100% of the minimum work programme of 30,000 barrels of oil per day. The effective date of the acquisition is February 28, 2011.

UNILEVER NIGERIA PLC: The company notified The Exchange of the appointment of Mr. Kwaku Offeh Boateng as a Director on its Board, effective November 1, 2010.