Shares prices fall THE investment climate which, in the last couple of weeks had gathered thick cloud, leading to uncertainty in the stock market and thereby resulting into losses in the value of shares, had a temporal break in two trading days last week even as the week closed on a downward note.The market which observers and experts alike have termed the barometer through which the economy of any country is measured has no doubt been at its lowest ebb in terms of transaction and confidence from investors.A tentative figure on the investment depreciation in the value of securities in the market in the last nine trading months has been put above over N1.2 trillion, even as there were permutations that the market might go down further owning to the approaching festive period in the country.The turn of event in the market is causing prices of stocks to appreciate after a few weeks of meltdown in the value of stocks.The new breath in the market, which appears to be the new lease of life in the equities market, saw investors, in shares, in last Tuesday and Wednesday heaving a sigh of relief as they swap huge fund on shares, but profit taking on Thursday and Friday wiped off the total gains in the equities market.The approach of the market is also a further pointer to what stocks experts have said, that most of the stocks which are strong, especially in the blue-chip category ( construction, breweries and petroleum marketing subsector) and the banking sub-sector had reached their resistance level in terms of pricing and hence the need for the upward climb.Factors contributing to price fall For the banks, investors' apathy still trails the successes so far recorded in the acquisition of the weak banks wherein the shareholders gave their approvals to all the resolutions brought before them.The coming of the Asset Management Company of Nigeria (AMCON) to the rescue of the banks, although an added advantage, is still being taken with suspicion just as the viability of the securities in the banks is presently having finishing touches on their sales The stability of the weak banks by way of getting new owners has since lessened the anxiety investors had in the shares of the listed banks.Major shareholders activities in the week Following the sustainable depression in the equity market, stockbrokers have bemoaned failure of government to salvage the situation even as they insisted that the government's economic transformation agenda would fail unless urgent steps were taken to bail out the market.Expressing deep worry over government's insensitivity to the capital market, the market operators urged all stakeholders to take urgent steps to pull the market back from the brinks of collapse.The Chairman, Association of Stockbroking Houses of Nigeria (ASHON), Alhaji Rasheed Yusuf, said that the current state of the market left nothing to celebrate even as he said that it had become necessary for the government to intervene and save the market if only to ensure the success of its transformation agenda which he said largely depended on the performance of the market.He argued that the productive sector depended largely on the market to raise funds in order to remain in business, just as the performance of the general economy and the gross domestic product depends on the capital market.'We need to educate people in government. We do not believe they understand the central role of the capital market in the whole economic transformation programme they are talking about. If they do, everybody will realise that the transformation programme has no chance of succeeding if the capital market is a failure'We need to make them understand that when we ask them to do something about the market, we are not cap-in-hand begging them for money. What we are saying is that they should fix the system because when you talk of factories opening up for employment and increasing the GDP, we are talking about the private sector and the private sector has to come to the market to raise money either in form of bonds or equities.'Right now the council has approved so many applications, they want to come to the market but they are holding them at bay because the market is not alright. How long can we continue in this state of affairs' Please, go to Abuja and tell them that we need to fix this market to make it bounce back', Yusuf concluded.Reacting, Interim President of NSE Council, Balama Manu, explained that already the Exchange had been working out series of measures aimed at fixing the market part of which being the planned introduction of market makers.Equity Transactions last weekTuesday being the first trading day after the public holiday, saw a growth in the equity market.The NSE's indicators closed in the green territory after the Independent holiday when market capitalisation gained N67 billion to close at N6.563 trillion while the All-share index appreciated by 208.30 basis points or 1.02 per cent to close at 20,581.30 points.A total of 246.983 million shares valued at N2.363 billion were traded in 4,663 deals with the banking sub-sector accounting for a total of 197.927 million shares valued at N1.317 billion in 2,441 transactions.Heavy gains recorded Wednesday in blue chip stocks on the trading floor of the Nigerian Stock Exchange (NSE), again lifted transactions to further close on a positive note even as market indicators rose by 0.55 per cent.At the close of equity trading activities, 26 stocks recorded price appreciation, while 19 stocks depreciated in value.Ashaka Cement Plc rose by five per cent or 85 kobo to close at N17.85 per share.Cadbury Nigeria Plc and Oando Plc gained five and 4.98 per cent each to close at N15.33 and N25.31 per share respectively.Nigerian Breweries Plc and Guinness Nigeria Plc followed on the gainers chart rising by 4.92 and 3.39 per cent to close at N87.60 and N214.99 per share respectively.The NSE All Share Index rose by 0.55 per cent or 114.5 basis points to close at 20,695.77 points, from 20,581.30 basis points recorded on Tuesday.Similarly, the market capitalisation of the listed equities closed at N6.599 trillion, representing a 0.54 per cent rise or N36 billion rise from N6.563 trillion recorded the previous day.However, the NSE-30 Index depreciated by 0.55 per cent or 5.04 basis points, from 922.9 basis points to close at 917.87 points.Mobil Oil Nigeria Plc recorded the highest loss for the day, shedding five per cent or N7.40 to close at N140.60 per share.Okomu Oil, International Breweries, Eterna Oil and Gas Plc and Champion Breweries followed with a decline of 4.95, 4.95, 4.93 and 4.93 per cent or N1.01, 30 kobo, 24 kobo and 22 kobo to close at N19.38, N5.76, N4.63 and N4.24 per share.The NSE Banking Index declined by 21.8 per cent or 82.99 basis points to close at 298.49 basis points, as against 381.48 basis points recorded previously.Activities in the banking sub-sector drove volume for the day, as it accounted for 80 per cent of total turnover.The shares of Fidelity Bank, Guaranty Trust Bank Plc, First Bank Plc and United Bank for Africa Plc drove volume in the sub-sector.In all, investors exchanged 194.4 million shares valued at N2.1 billion in 4,867 transactions.Equities value down again by N60 bn After a momentary rise in investors' wealth on the NSE in two trading days, activities on Thursday reversed to the downward note as losses by some highly capitalised stocks resulted in market indices depreciating by N60 billion.Consequently, market capitalisation fell by 0.9 per cent from N6.599 trillion recorded on Wednesday to N6.539 trillion, while the All-share index dipped by 188.59 basis points or 0.9 per cent, from 20,695.77 to 20,507.18 basis points.Further review of the market activities in the day showed that while 27 companies gained, 26 stocks depreciated in price.FCMB Plc emerged the highest price loser, shedding 5.00 per cent to close at N4.37 per share while CAP Plc followed dipping 4.98 per cent to close at N18.69 per share. Cadbury Nigeria Plc, UACN Plc and First Bank of Nigeria Plc depreciated 4.98, 4.96 and 4.92 to close at N18.69, N14.57 and N33.56 per share.However, UAC-Properties Plc led others on the gainers table with 5.00 per cent to close at N12.81 per share, followed by Flour Mill Plc with 5.00 per cent, to close at N60.90 per share.Other gainers in the day's transactions include Oando Plc, TRANSCORP Plc and ROADS Plc, which rose 4.98, 4.94 and 4.92 per cent per share.Transactions in the equities market closed on a depressed note as the twin market indicators, the market capitalisation and the All-Share Index closed at N6.449 trillion and 20,225.02 basis point after dropping by N90billion and 202.16 points or 1.3 per cent respectively.
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