Recommendation from market experts IN spite of the continued losses in the prices of shares, most market watchers cum analysts are still optimistic of full market recovery this year.The stocks experts based their hope on the tripod of the listed equities having inherent value; present prices of most stock selling below their real worth and the determination of the present managers in the market to return The Exchange to profitability.The meltdown in the price of securities in the stock market, beginning from March 5, 2008, has resulted in most stock companies in the market becoming penny stocks even as confidence is still a bit shaky.The experts are of the opinion that the low price of stocks should make any decerning investors take position in anticipation of capital appreciation as well as huge return on investment that will follow the merger of troubled banks at the close of the third quarter of 2011.According to analysts at First Securities Discount House (FDSH), 'the currently improved regulatory oversight on the equities market will boost investors' confidence both locally and internationally.''They are of the opinion that the only way the market could grow after losses that saw most stock becoming penny value was to go northward, even as they explained that the planned merger by some of the troubled banks would see investors taking stake again in their shares.Taking another closer look at the market, the Chief Executive Officer, Financial Derivatives, Mr. Bismarck Rewane, foresees boost in investors' confidence in the market, though he observed the possibility of profit-taking by speculators in the market.He said the market had since bottomed up and that it would begin to enjoy some relative stability more especially as issues involving rescued banks are being sorted out.For Cowry Asset Management analysts, 'we believe the market still has positive outlook as we expect the banks, which constitute more than 35 per cent of the total market capitalisation, to remain strongly sought after by investors in view of the imminent consolidation in the industry.'We also expect that results, which indicate improved earnings for the full year 2010 financials, would soon be released by the banks. Aside the banks, several companies are still undervalued with some trading going below their net asset per share.'Investors' low appetite for stockThe cautious investment in equities on the Nigeria Stock Exchange (NSE) coupled with the sell pressure on most stocks in the recent time has necessitated a dwindle in the prices of stocks, especially the blue-chips, even as market performance indicators recorded negative trend in the cumulative trading figures in the market.Specifically, in the previous week, the twin performance indicators, the market capitalisation and All-Share Index depreciated due to the fall in the prices of blue chips that used to raise indices in the market.Trading in the week, after a four days straight loss, further put to question market watchers permutation of possible potentials in most of the stocks and their advice for investors to engage in long term investment not minding the profit takings and portfolio restructuring by the investors which tend to slow activities down sometimes.NSE's moves to reposition marketWith unwavering commitment to deepen the market, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, has said that The Exchange had identified integrity, durable wealth creation and business development as veritable tools to grow the market.To this end, he said the exchange would soon roll out new products; Options and Derivatives that would be traded on The Exchange beginning from 2012. Besides, Onyema noted that the management of The Exchange had co-opted 10 new members to bolster its oversight functions, adding that each inducted council member had subscribed to the code of conduct for council members.He listed the five asset class options to include exchange traded bonds, equity options, index options, derivatives and financial features.He noted that a lot of things needed to be considered for the industry to be ready for the new products. According to him, The Exchange needed to hire options specialists to drive the products to fruition.'Such specialists will gather necessary mechanism to drive the products and until I have such persons on board, I can't give you specific options. My goal is that within two years, we will be trading on the new products,' Onyema said.Last week trading Share price gain by some blue chip stocks on Monday ushered in the bull and allowed corporate performance indicators to rise by 0.38 per cent. At the close of transactions in the day, the All-Share Index which opened at 23,826.99 points, closed higher at 23,916.90 points, while market capitalisation appreciated by N29 billion from N7,621 trillion to N7,650 trillion.In volume terms, a total of 268.3 million shares valued at N2.1billion changed hands in the day's transaction in 5,080 deals.A review of the day's price movement chart showed that NAHCO Plc led 21 other stocks to gain price appreciation with a rise of 5.00 per cent to close at N7.35 per share, followed by Eterna Oil Plc with a rise of 4.90 per cent to close at N4.28 per share, while UBA Plc appreciated by 4.84 per cent to close at N4.98 per share.On the other hand, SCOA Plc topped the day's price loser's chart with a dip of 4.98 per cent to close at N6.11 per share, followed by Stacomm Plc with 4.92 per cent fall to close at N5.46 per share, while RedStar Express Nigeria Plc lost 4.87 per cent to close at N3.32 per share.On the day's activity chart, the banking sub-sector was the most active in volume terms, trading 180.1 million shares worth N1.64 billion, followed by the insurance sub-sector with 46.5 million valued at N30.6 million, while the Conglomerate sub-sector traded 6.4 million shares worth N45.2 million.Further review of activities in the sub-sector showed that the volume in the banking sub-sector was largely accounted for by 49.2 million shares of Zenith Bank Plc worth N728 million, followed by 27.8 million shares of Guaranty Trust Bank Plc valued at N404.8 million.For the insurance sub-sector, the volume was energised by 8.6 million shares of Continental Reinsurance Plc worth N9.045 million, while 5.2 million shares of TransNational Incorporation of Nigeria (TRANSCORP) Plc valued at N5.3 million lifted the volume of the Conglomerate sub-sector.Tuesday's trading activities on the floor of the market returned to the trenches after a day gain as Evans Medical Plc and John Holt Plc led other 36 losers to depreciate the market performance indices by 0.2 per cent.At the close of trading in the day, Evans led the percentage losers' chart with five per cent to close 95 kobo while John Holt followed with a loss of 4.99 to close at N6.85 while Cap Plc dropped by 4.98 per cent to close at N27.46.On the other hand, Oceanic Bank, one of the rescued banks led the other 14 gainers with five per cent to close at N1.05. Eternaoil followed with a gain of 4.67 per cent to close at N4.48 while CI Leasing added 4.40 per cent to close at 95 kobo.A review of trading in the day showed that the All-share index shed by 53.63 basis points or 0.2 per cent from 23,916.90 recorded on Monday to 23,863.27 while market capitalisation dropped by N17 billion or 0.2 per cent from N7,650 trillion to N7,633 trillion.Further analysis of transactions showed that the banking sector buoyed by the activities in shares of Zenith Bank and GTB was the most active in terms of volume with a turnover of 274.2 million shares worth N2.2 billion in 3,033 deals.Insurance sub-sector activated by the activities in the shares of Regency Alliance followed with a turnover of 111.9 million shares worth N60.09 million in 236 while Conglomerates sub-sector strengthened by the activities of Transcorp followed with a turnover of 26.6 million worth N64.8 million in 397 deals.On the whole, investors exchanged 500.3 million shares worth N2.7 billion in 5,282 deals.Transaction on Wednesday sustained the bearish trend as National Salt Company of Nigeria (Nascon) Plc and Japaul Plc led other 21 losers to depreciate the market performance indices by 0.2 per cent.A further review of trading in the day showed that Nascon led 22 other losers in percentage losers' chart with 4.92 per cent to close at N4.64. Japaul followed with a loss of 4.67 to close at N1.02 while Continental Reinsurance Plc dropped by 4.57 per cent to close at N1.04.On the other hand, Berger Paint led the other 21 gainers with 4.94 per cent to close at N9.34. Presco followed with a gain of 4.93 per cent to close at N7.87 while Oceanic Bank added 4.76 per cent to close at N1.05.The All-share index shed 54.59 basis points or 0.2 per cent from 23,863.27recorded on Tuesday to 23,808.68 while market capitalisation dropped by N18 billion or 0.2 per cent from N7,633 trillion to N7,615 trillion.Further analysis of the day's transactions showed that the banking sector buoyed by the activities in shares of Access Bank and Oceanic Bank was the most active in terms of volume with a turnover of 117.7 million shares worth N735 million in 2,711 deals.Insurance sub-sector activated by the activities in the shares of Custodian and Allied followed with a turnover of 16.9 million shares worth N30.8 million in 206 while Conglomerates sub-sector strengthened by the activities of Transcorp followed with a turnover of 6.9 million worth N46 million in 384 deals.On the whole, investors exchanged 167.7 million shares worth N1.5 billion in 4,721 deals.Investment on the floor of the NSE on Thursday further witnessed bearish trend even as major performance indices receded by 0.26 per cent on the impact of losses by highly capitalised listed companies.A further review of the day's trading showed that major petroleum listed company, Oando Plc led other 22 losers, stocking a maximum 5 per cent ceiling to close at N39.33 per share. Forte Oil Plc followed with a loss of 4.98 per cent to close at N18.32 per share, R.T Briscoe Plc ranked third with a loss of 4.73 per cent to close at N1.61 per share, while Afribank Plc dipped by 4.29 per cent to close at N0.67 per share, among other losers.On the other hand, Oceanic Bank Plc, for the second day running, led 20 other gainers with 4.55 per cent to close at N1.15 per share. Eterna Oil followed with a gain of 4.24 per cent to close at N4.67 per share, Law Union Rock Plc ranked third on the chart with 4 per cent rise to close at N0.52 per share, while Bank PHB rose by 3.77 per cent to close at N0.55 per share among other gainers.Analysis of the day's trading showed that the All-share index shed by 63.46 points or 0.26 per cent from 23,808.68 recorded on Wednesday to 23,745 while market capitalisation dropped by N2 billion or 0.26 per cent from N7.615 trillion to N7.595 trillion.Further analysis of transactions showed that the banking sector remain most active in volume terms with a turnover of 151.10 million shares worth N990.08 million in 2,673 deals.The Conglomerates sub-sector followed with a turnover of 27.71 million shares worth N80.02 million in 390 deals.On the whole, investors staked N1.59 billion which exchanged hands in 4,511 deals on 221.75 total volumes of shares.Trading on Friday also close in the red, as market capitalisation fell further by N111 billion to close the week at N7,484 trillion from N7,595 while the All-Share Index dipped by 347.78 basis point to close transaction in the day at 23,397.44 from 23,745.2.
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