SACK OF MINISTERS LEADS TO MARKET STABILITY
Sack of ministers leads to market stability
By Daniel Osunkoya
March 19, 2010 03:09AM
Following the dissolution of the Federal Executive Council members by the Acting President, Goodluck Jonathan, on Wednesday, some operators at the Nigerian Stock Exchange (NSE) are optimistic that the capital market is now expected to witness stable rebound.
Egbo Amaechi, an executive member of the Shareholders Association of Nigeria, said that the “unfolding political stability” will relatively bring steadiness to the wobbly market recovery.
Mr. Amaechi said, “The capital market is part of the larger economy and it is being managed by the federal government. For a very long time there has been a vacuum in the presidency and tussle in its cabinet which also affected market performance. Now that we have somebody to fill that vacuum with a promise of a new team that will continue the federal government programmes, it is only naturally that the market will improve in activities that will bring positive stability.”
Another operator, Gbenga Emmanuel, a finance analyst at Wealth Zone Company, a portfolio management firm, said that by this development, “the nation's capital market is expected to witness more activities that will boost investors' confidence.”
Market parameters down
Meanwhile, at the close of proceedings on Thursday, the two parameters for measuring performance at the NSE, the market capitalisation and the All-Share Index, depreciated by a 0.98 per cent.
The market capitalisation, yesterday, recorded over N58 billion loses on Wednesday's figure of N5.921 trillion, to close at N5.863 trillion; while the All-Share Index lost 242.24 points down from 24,504.58 basis points to close at 24,262.34.
David Adonri, the chief executive officer of Lambert Trust and Securities Company Limited, a stockbroking firm, said the plunging recorded yesterday after the market witnessed eight consecutive trading days of rebound could be attributed to “profit takings by some institutional investors.”
The Exchange recorded trading in over 481.620 million volumes of stocks on Thursday, worth N4.380 billion in a record of 8,396 deals. A total of 29 stocks appreciated in price while 47 stocks depreciated.
A petroleum marketing company and a Healthcare company, Oando Oil and Glaxo Smithkline Consumer, topped the price gainers' chart yesterday, with an increase of N3.00 and N1.42 on their opening prices of N77.50 and N28.48 per share respectively. CAP and Nigeria Flour Mill followed in the chart with an increase of N1.41 and N1.20, to close at N29.67 and N25.35 per share.
On the flip side, Benue Cement Company and Flour Mill Nigeria topped the losers' chart with a decrease of N3.40 and N2.10, to close at N64.61 and N50.00 per share respectively. Cadbury Nigeria and Dangote Flour Mill followed on the list with a decrease of 96 kobo and 84 kobo respectively, on their opening prices of N19.22 and N16.90 per share.
Trading activities in the banking subsector topped the most active subsectors' list with 295.016 million shares, valued at N2.852 billion. The subsector's volume was driven by trade in the shares of Diamond Bank, Access Bank, Sterling Bank, and Guaranty Trust Bank.
The insurance subsector followed, with 56.213 million shares worth N79.154 million. Volume in the subsector was boosted by deals in shares of Guaranty Trust Assurance, International Energy Insurance, and Custodian & Allied Insurance.
The food/beverages subsector was third in the activity chart with 24.946 million shares valued at N424.328 million. The subsector's volume was driven by trading in shares of Dangote Flour Mills, Dangote Sugar Refinery, and Cadbury Nigeria.
Meanwhile, the management of University Press Plc, in a statement, on Thursday, notified the NSE of the resignations and appointments of some of its directors.
Effective from 10 March, 2010, Tunde Durosinmi-Etti and Oluseyi Osho resigned from the company's board of directors, while M. O. Akinleye would step aside on May 1. Obafunmiso Ogunkeye and Oluronda Ayodeji was appointed on the board on March 1, while Yomi Arenu Adewusi would resume as a director on May 1.