Naira Weakness Undermines Economic Stability – LBS EBS – March 2016


The market at the close of trading today maintained a positive outlook, a continuation of the trend that has been in the last four trading days. In the last four trading days since the upbeat resurfaced, market has recorded All-Share Index appreciation of 3.06% and market capitalization within the same period has increased by N165.007 billion. Banking and Food & Beverages Indexes in the last four trading days have grown by 5.39% and 2.19% respectively even as they maintain positive outlook at the close of trading today. In contrast, Insurance and Oil & Gas Indexes in the last four trading days have declined by 2.63% and 0.05% respectively. At the close of trading today, the market volume and value closed higher when compared with the previous day’s data, the surge in the volume traded is traceable to increase in the turnover recorded in the banking stocks.

Market volume transactions at the close of trading today grew by 33.27% to close at 537.959 million units exchanged in 7,468 deals compared with a declined by 17.48% to close at 403.657 million units exchanged in 6,086 yesterday. The transaction value for the day closed higher by 54.90% to close at N4.445 billion as against a marginal drop of 0.88% to close at N2.870 billion of the previous trading day. At the close of trading, out of 133 securities traded today, 44 gained, 28 declined and 61 closed at their previous trading prices. Daar Communication Plc and Skye Bank Plc topped the gainers’ list for the day with maximum price appreciation of 5%, while on the other hand Wapic Insurance Plc and Prestige Insurance Plc shed the highest price weight by 5% each.

All the top five trades in the market today were banking stocks with the total volume of 167.220 million units valued at N1.603 billion exchanged in the shares of the five stocks, the volume and value of these five stocks accounted for 31.08% and 36.06% of the entire market volume and value respectively. Diamond Bank Plc recorded the highest volume traded to the tune of 57.045 million units valued at N511.249 exchanged in 143 deals, the price of the stock eventually closed higher by 2.96%. First Inland Bank Plc followed with 42.102 million units valued at N32.717 million exchanged in 179 deals to record 1.28% price appreciation. The third most traded stock for the day was Zenith Bank Plc with 25.218 million units valued at N393.251 million to close at its previous day’ closed price. United Bank for Africa after trading 21.829 million units valued at N286.599 in 340 deals recorded 2.31% price appreciation and emerged the fourth most traded stock. Guaranty Trust Bank Plc price appreciated by 2.70% to record transaction value of N379.202 million after 21.028 million units of the stock were exchanged in 499 deals.

The All-Share Index at the close trading today appreciated by 1.01% to close at 23,096.17 compared with 1.20% appreciation of the previous day to close at 22,865.16. The market capitalization today recorded N55.633 billion appreciation to close at N5.562 trillion compared with N65.088 billion appreciation of yesterday to close at N5.507 trillion. Two of the four sectoral indexes appreciated at the close of trading today; NSE-30 index inched up by 1.31% to close at 915.62, NSE-Food and Beverages appreciated by 0.70% to close at 613.10, NSE-Insurance recorded depreciation by 1.15% to close at 220.13, NSE-Banking gained by 1.32% to close at 385.62 and NSE-Oil& Gas index closed at the previous day index of 298.31.

Spring Bank Plc, Afromedia, Redstar Express Plc, Costain Plc, Flour Mill Plc, Capital Hotel Plc, Unic Insurance Plc and Daar Communications Plc closed on strong bid at the close of trading today.
However, Tantalizer Plc, Prestige Insurance Plc, Staco Insurance Plc, Unity Kapital Plc, Royal Exchange Plc, Beco Petroleum Plc and University Press Plc closed on strong offer.
Chellarams Plc second quarter report for the period ending 30th September 2009: Turnover in the period grew by 17.02% to close at N9.060 billion from     N7.742 billion reported in the previous year. Profit after tax growth of 24.07% was reported in the period to close at N247.793 million compared with N199.720 million of the preceding year’s comparable period. Working capital situation in the period when compared with what obtained in the previous year improved by 46.36% to close with a lower negative balance of (N316.307 million) compared with (N589.671 million). Net assets in the period recorded 17.82% appreciation to close at N2.592 billion from N2.200 billion of the previous year.

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