Shares purchaseAT the close of trading on Friday, on the Lagos trading floor of the Nigerian Stock Exchange (NSE), investors in equities in the market could not heave a sigh of relief as transaction in the stock market failed to toll the path of growth trajectory experts had been talking about in the second half of the year.Investors in the market are still skeptical as to how well they could approach the equities market, which penultimate week, caused a lot of anxiety as the twin market indicators value depleted and closed the first half of the year with a cumulative loss of N252 billion.In view of the tight regulatory framework and its implementation by the apex market body, the Securities and Exchange Commission (SEC) and the NSE experts had opined that every other thing being equal, the stock market would experience a good growth in Q2 given the relative calm in world economy.However, since the beginning of activities in the second half of the year, investment in securities has witnessed a rather inconsistent swing, even as the banking shares which control about 60 per cent of daily trading in the market are yet to attract the desired attention from investors.Investments trading in the market have continued to witness a situation where the gains made in the market are being wiped away by profit taking, just as most investors are still waiting for others to come into the market before they follow suit.To show that the investors are really shying away in the recent times, current first and second quarter plausible financial statement by banks and other listed companies in the market was unable to galvanise interest in the purchase of shares, rather investors are selling off their holdings while others embark on profit taking. Investors fear Notwithstanding the penny value nature of stocks and marginal gains that cut across board, investors are of the belief that it is still hasty in the day to come to the stock market.The recurrent policy summersault of the Central Bank of Nigeria (CBN) as it relates to interest rate, which no doubt affects every economic unit in the country, is one major factor the designed investors are really cautious about.Interest rate as a financial regulatory measure helps to tighten the monetary policy so as to curtail the inflationary pressure arising from huge injections of funds into the economy.On the other hand, given the spiral effect of any hike in interest rate in every economy, and Nigeria not being an exception, investors tend to pull out their fund from the stock market to the money market where they will get increased yield in return for their investment. Experts' permutation on stock value growth Despite the dip in the value of equities and other myriad issues that attended the opening of the equities market in the year, experts were quick to suggest that transaction in the year will double the gains of 2010 financial period.But a review of the year in the market showed that trading activities have only recorded a marginal growth of 0.85 per cent increase.FSDH Securities Limited, a leading investment going concern, had said that the market would grow by 7.5 per cent in the second half.FSDH stated that improved financial earnings and regulatory oversight should boost investors' confidence in the equities market in H2, 2011.The experts noted that although the current high yields on fixed income securities might reduce the inflow of funds to equities market. Investors who seek positive real return on their portfolio should patronise the equities market.They added that the prices of stocks were very attractive for medium to long-term investors at the moment, a situation they said will sustain recent momentum in the market.'FSDH Research maintains that the current improved regulatory oversight on the equities market will boost investors' confidence both locally and internationally. Also, the positive outlook for the global and domestic economy in the second half of the year should boost activities in the market for the remaining part of the year and lately the appreciation in the value of the Naira.'In our view, the following factors will help to sustain the growth in the market for the remainder of 2011: Good and improved earnings of quoted companies; implementation of the federal budget; stability in foreign exchange rates and other macroeconomic riables; sustained global economic recovery, which will keep the oil price around its current level of $100 per barrel, 'FSDH said. Transaction in equities Equity transactions at the opening of trading on Monday continued on the upbeat as increase in interest in stocks saw investors wealth rising arginally by N39 billion.Activities at the stock market have been on the upside since last Wednesday when news filtered into the market that the SEC was considering merger application by some bailed out banks.At the close of trading yesterday 35 stocks recorded price appreciation, as against 19 that constituted the losers table.The twin market indicators, the All-Share index which measures the performance of quoted companies rose by 120.93 points or 0.50 per cent from 23,925.72 recorded last week Friday to 24,046.65, while market capitalisation increased by N39 billion or 0.50 per cent from N7.649 trillion to N7.688 trillion.Further analysis of yesterday trading showed Fidson Nig Plc topping the day's gainers' table with 5.00 per cent to close at N1.89 per share while Skye Bank Plc followed with 4.95 per cent to close at N6.78 per share. FCMB, Cadbury Nig. Plc featured with 4.95 and 4.94 per cent rise to close at N6.36 and N17.85 per share.On the activity chart, the banking sub-sector dominated in volume terms with 126.8 million shares worth N775.2 million in 2,885 deals.The insurance sub-sector followed with 67.3 million units worth N88.2 million in 142 deals. The packaging sub-sector ranked third with 8.11 million units, worth N18.6 million in 236 deals.In all, investors exchange 8.11 million shares, worth N18.6 million in 236 deals.Transactions on Tuesday further closed on the positive note as Ashaka Cement and International Breweries led other gainers to appreciate market performance indicators by marginal increase of 0.05 per cent.The two companies led 26 others with 4.98 per cent and 4.94 per cent to close at N22.14 and N6.37 per share respectively while capital Hotel followed by 4.90 percent to close at N6.85.On the other hand, 24 stocks depreciated in price, as Honeywell Flour Mills topped the losers' chart with 4.95 per cent to close at N3.84. RT Briscoe followed with a loss of 4.83 per cent to close at N1.97 while Fidelity Bank shed 4.78 per cent to close at N2.19.Consequently, the All-share index appreciated by 11.25 basis points or 0.05 per cent from 24046.65 recorded on Monday to 24.057.90 while market capitalisation equally appreciated by 0.05 per cent or N4 billion from N7,688 trillion to N7,692 trillion. With transactions exchanged in 3,065 deals, the banking sub-sector fuelled by the activities in the shares of Unity Bank and First Bank maintained its dominance in volume terms with 203.6 million shares worth N1.2 billion followed by the insurance sub-sector with 20 million units worth N12.6 million in 279 deals. The packaging sub-sector ranked third with 9 million units worth N19.7 million in 126 deals.In all, investors exchanged total of 275.5 million shares worth N1.8 billion in 5,191 transactions.Trading activities on the floor of the NSE on Wednesday returned to the trenches as the market capitalisation dropped by N12 billion to close at N7680 trillion or 0.1 per cent.The All-share index equally dropped by 0.1 per cent or 45.91 points to close at 24,011.99 index points.In all, investors exchanged a total of 602.2 million shares valued at N1.8 billion 4,884 deals.Transaction on the floor of the NSE on Thursday further dropped by N33 billion as most capitalised stocks recorded price depreciations resulting in the depreciation of investors wealth by N33 billion.A review of trading in the days showed that the All-share index shed by 105.02 basis points or 0.4 per cent from 24,011.99 recorded on Wednesday to 23,906.97 while market capitalisation dropped by N33 billion or 0.4 per cent from N7,680 trillion to N7,647 trillion.Further analysis of the day's 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 135.5 million shares worth N1.09 billion in 2,519 deals.Insurance sub-sector activated by the activities in the shares NEM insurance followed with a turnover of 12.8 million shares worth N8.4 million in 116 deals while Food and Beverages ranked third with a turnover of 3.7 million shares valued at N169.5 million in 246 deals.On the price movement chart, 16 stocks appreciated in price, led by PZ Cussons with 4.99 per cent to close at N40.00 per share. Entena Oil followed with 4.88 per cent to close at N4.08 per share while Redstar Express added 4.86 per cent to close at N3.67.The equities market depleted further at the close of trading on Friday, following heavy losses recorded by blue chip company even as investors' wealth fell in the day by N24 billion, from N7.647 trillion to N7.621 trillion.
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