030910 NSE ASI drops marginally by 0.13% to close the week bearish

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030910 NSE ASI drops marginally by 0.13% to close the week bearish

Trading activities in the Nigerian Capital Market started the week under review with a decline of -0.22%, the All Share Index closed on Monday on a lower performance at 24,221.13 to pilot the week into bearish trend, which eventually closed the week with aggregate decline of -0.13%.

The equity market recorded +0.19% marginal gain on Tuesday which could not be sustained. The bears thereafter dictate the market sentiment for two trading sessions, eventually closed the last day with a gain of 0.16%.

On the last trading day of the week, a significant transaction observed on Aso Savings Plc with 127.68 million volume trade valued at N63.million from Mortgage sector as there was 87.26% surge in market volume. Also the activities recorded from Insurance sector and Oil and Gas sector salvaged the market to gain marginally.

During the week, the bearish position depleted market capitalization by N3.62 billion to close at N5.940 trillion due to unwillingness and not-convinced attitude of investors which resulted into cautious decision towards equity bargain. Further analysis revealed that the market capitalization which measures the worth of total market investment recorded YTD loss by N948.106 billion (US$6.42 million).

This has been perceived as post-effect of CBN’s directives which demands banks’ risk asset portfolio in the stock market must not exceed 10 per cent and ordered them to recover all stock market debts tied to margin loans or face sanctions with effect from September 1st 2010

The NSE sectoral index closed the week with NSE 30, NSE food and & beverages the NSE and NSE banking dropping by 0.18%, 0.94% and 0.39% respectively, while Insurance index and Oil and Gas index closed with growth of 2.95% and 1.59% respectively.

However, the All-Share Index in the week under review dropped by -0.13% to close at 24,241.84 as against decline of -3.32% recorded last week to close at 24,274.5.

In the same vein, the market capitalization in the week recorded dropped by N3.62 billion (US$24.59 million) to close at N5.94 trillion (US$ 40.25 billion) as against depreciation by N203.56 billion (US$1,359.62 million) recorded last week to close at N5.93 trillion (US39.65 billion).

The total volume traded in the week closed at 1.44 billion units valued at N11.94 billion (US$80.96 million) compared with 1.20 billion units valued at N10.38 billion (US$70.176 million) exchanged in 32,155 deals last week. The volume transaction in the week when compared with the previous week data grew by 20% as against volume growth by 2.4% recorded last week. Weekly value however moved up by 15.13% as against decline of 10.6% recorded last week.

The lead volume traded in the banking sector is evident in the table above with six of the top ten trades being banking stocks. Guaranty Bank Plc lead the market volume for the week to displace UBA Plc shares which topped the transactions volume chart last week.

The volume traded in the top ten most traded stocks for the week represented 55.70% of the entire market volume transactions and their total value accounted for 47.77% of the market value.

As usual, banking sector emerged the most traded sector in the week in terms of volume. The volume traded in the sector this week alone closed at 722.028 million units valued at N6.42 billion exchanged in 17,411 deals compared with 725.79 million units valued at N5.79 billion exchanged in 16,779 deals in the preceding week. The volume traded in the sector accounted for 50.03% of the entire market compared with 59.06% of the ratio recorded last week.

The sector’s volume transaction was mainly boosted by trading in the shares of the banks in the top-ten category.

Insurance sector followed with 255.226 million units valued at N322.268 million exchanged in 1,532 deals compared with 79.02 million units valued at N85.31 million exchanged in 1,396 deals in the sector last week. Goldlink Insurance Plc stocks emerged the most traded stock in the sector with 89.22 million units valued at N46.41 million exchanged in 68 deals.

INDEX MOVEMENTS

NSE All-Share Index opened the week on a bearish note with -0.22% depreciation. Consequently, due to the weak investors’ confidence in the market, the same trend continued on Wednesday after 0.19% gain recorded on Tuesday. Market consequently closed on positive note on Friday with +0.16% appreciation.

In the week under review, NSE-Insurance index appreciated the most by 2.95% while NSE Food and beverages depreciated most by 0.94%.

Top 10 Gainers of the week

The number of gainers in the week moved up to forty three (43) compared with twenty four (24) appreciations recorded last week. Wema Bank Plc led the gainers’ chart with +24.69% appreciations. Other gainers in the top ten appreciation class are outlined below.

Top 10 Losers of the week

Fifty one (51) stocks recorded price decline of different magnitude in the week under review compared with sixty six (66) stocks that declined in the previous week. Nascon Plc topped the losers chart for the week with -15.79% depreciation. Other losers in the top ten classes are outlined below.

Corporate Declarations for the Week