Mood of investorsWorried by the era of depletion as shown by market performance indicators, stakeholders and investors on the Nigerian stock market have started to express mixed reactions which has continued to dictate the mode of transactions in the market.The market, which can also be said to be suffering as a result of the divergent views held by small and institutional investors as regard the direction of the market in the face skepticism, witnessed a reduction in the volume of shares, last week.The market experienced losses in two days while gaining only on Thursday and Friday, but this could not assuage the losses which had earlier started.The NSE All-Share Index depreciated by 45.14 points or 0.17 per cent to close on Friday at 26,639.35 while market capitalisation closed lower at N8.51 trillion.Investment decisions in the securities market in the previous week were trailed by hike in the Central Bank of Nigeria (CBN)s interest rate, the planned reduction in brokerage firms and the Asset Management Company of Nigerian fund which is yet to be injected into the market.Also, in the week, with the dip in market indicators, apathy to investment still persisted.Further review of activities in the week shows that profit-taking was prevalent in the stock market, thus resulting in the slow-down in market tempo.AMCONs contribution to the dip in indicatorsThe Asset Management Company of Nigerias planned scheme to buy about N2.5 trillion toxic debts of illiquid banks on the stock market prior to the close of business transaction last year reverberated investors interest in shares, thus hiking indicators in the market.The proposal of AMCON, through planned injection of fund into the market, drove up share capital appreciation and this made investors to start taking profit by heavy massive sales of their shares.The pursuit by investors to take advantage of the rise in shares prices caused the equities market to take the southward curve, thus resulting in the striping of the market of almost gains recorded in the month of January.The last straw that appeared to have broken the camels back, was when, penultimate week, the management of AMCON reneged on its planned purchase of N1.5 trillion banks bad debts.By virtue of this action, investors seemed to have been boxed to a corner. Their plan was to leverage on the AMCON scheme to recoup their investment, whose value had, between 2008 and 2009, depleted by over 70 per cent.SECs planned reduction of brokerage firms The recent proposal by the Securities and Exchange Commission (SEC) to cut down on brokerage firms in the stock market have somehow pitched the market regulators against the dealing members who see the move by the apex body as inimical to the growth and development of the market.The dealing members (stockbrokers), who have been miffed by the development, have expressed worry about the commissions move at this point in time when confidence is yet to return to the market, saying this is capable of causing erosion of fund from the equities market.Experts have argued that Nigeria, with a population of over 150 million, coupled with the infrastructure challenge cannot cope with fewer stock broking firms, noting that the plans would hamper the ongoing investors awareness to mobilise them to invest in the stock market.It would not be an advantage to the market. When people dont know the actual direction things are moving, it is actually going to affect the market. We need to move step by step in order not to cause more panic in the market.We should look at the tradition, customs and how the economy grows. With the population of over 150 million people and lack of infrastructure, how are we going to go far to those that want to invest in the market, a stockbroker argued.Corroborating this assertion, the General Manager, Lambeth Trust & Investment Limited, Mr David Imafidon Adonri, submitted that the plans would not augur well with the market.Adonri noted that the plans might hinder competitiveness such that fewer firms would monopolise the market and could set prohibitive entry requirement for the retail investor and other categories of investors.He said this would affect the primary market segment as young investors would not have access to the market, adding that it would also have a multiplier effect on the economy. The consolidation did not succeed in the banking industry and there is no guaranty that it would succeed in the capital market. When consolidation is forced on enterprise, the possibility of a successful outcome is remote. It is a delicate exercise as most end up in failure.Similarly, the National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, condemned the plan, saying that it was already eroding investors confidence.According to him, there is need for the regulators to give stockbrokers time to beef up their capital base as most of them are still trying to wriggle out of the global economic recession. SEC is not getting things right. She is following suite what the Central Bank of Nigeria (CBN) is doing, and that kind of scenario would not lead to a world-class market because the market is confidence-driven, and when you try to create panic and threaten the workforce, confidence would be eroded. If SEC is building confidence, they should give them chance to recapitalise and not threaten the confidence that is gradually returning in the market.Equity transactions in the weekTransactions opened the week on a bearish note as most blue-chip stocks depreciated in value, causing both market performance indices to slide by 0.32 per cent.Review of price movement in the day showed that, 19 companies appreciated in price while 32 others shed value. Custodian Insurance led the percentage gainers table with a gain of five per cent to close at N3.36. BAGCO followed with a gain of 4.95 per cent to close at 3.18, while Wema Bank added 4.83 per cent to close at N1.52.On the other hand, Livestock Feeds and Skye Bank shed five per cent each to lead the pack of losers and close at 57 kobo and N10.00 respectively.Fidson Healthcare followed with a loss of 4.92 kobo to close art N2.52 while Intercontinental Bank shed 4.88 per cent to close at N2.73.Consequently, the market capitalisation of equities depreciated by N27 billion to close at N8.507 trillion from N8.528 trillion recorded on Friday while the All- Share Index equally shed 86.08 basis points or 0.32 per cent to close at 26,598.41 index points as against 26,684.49 as its opening index.Further analysis showed that the banking subsector maintained its dominance in terms of volume with a turnover of 158.8 million shares valued at N987 million in 3,135 deals. The sector was fuelled by the activities in the shares of Unity Bank and FinBank.Building Material subsector, buoyed by the activities in the shares of Lafarge Cement, followed with a turnover of 12.4 million shares worth N531.3 million in 28 deals while insurance subsector, motivated by the activities in the shares GTA, trailed behind with a turnover of 10.4 million shares worth N13.4 million in 185 transactions.On the whole, investors staked a turnover of 282 million shares worth N1.9 billion in 4,991 deals.Transaction on the floor of Nigerian Stock Exchange on Wednesday continued on the bearish note despite the Tuesdays Eid-el-Maulud public holiday, with both market performance indices deepening further by 0.49 per cent.The market capitalisation of equities dropped by N42 billion to close at N8.459 trillion from N8.501 trillion while the All-Share Index equally slide by 129.83 basis points or 0.49 per cent to close at 26,468.58 index points as against 26,598.41 recorded the previous trading day. A review of trading in the day showed that, 14 stocks appreciated in price as against 46 others that depreciated in value. Niger Insurance led the percentage gainers chart with 4.88 per cent to close at 86 kobo. RT Briscoe followed with a percentage gain of 4.84 per cent to close at N3.03 while Sterling Bank added 4.78 per cent to close at N2.41, among other gainers. On the other hand, Unilever led the losers table with five per cent to close at N28.50. May & Baker followed with a loss of 4.99 per cent to close at N5.33 while Conoil shed 4.98 per cent to close at N38.14, among other losers. Further analysis showed that the banking subsector, driven by the activities in the shares of Zenith Bank and First Bank, maintained the most active in terms of volume with a turnover of 157.7 million shares valued at N1.2 billion in 3,544 deals. Insurance subsector, strengthened by the activities in the shares of Custodian Insurance, followed with a turnover of 130.8 million shares worth N374.4 million in 428 deals. Other financial institutions, fuelled by the activities in the shares of Crusader Group, ranked third with a turnover of 27.4 million shares valued at N13.8 million shares worth 23 transactions. On the whole, investors staked a turnover of 427.1 million shares valued at N3.3 billion in 6,789 deals. The market, on Thursday, tilted towards the northward curve as most capitalised stocks closed in the green, thereby, causing the twin market indices to appreciate by 0.59 per cent. Experts in the days transaction attributed the positive trend witnessed in the market to some speculators trying to leverage on the low prices of stocks after a downward run in the market that brought some stocks trading to its par value. Market capitalisation grew by N51 billion or 0.59 per cent to close at N8.510 trillion from N8.459 trillion it recorded the previous day while the All-Share Index equally appreciated by 158.71 basis points or 0.59 per cent to close at 26,627.29 index points in contrast to 26,468.58 as its opening index. Activities in the day saw 30 stocks appreciating in price while 23 others lost value. Flour Mills Plc led the price gainers chart with a gain of N2.50 to close at N81.50. Nigerian Bottling Company followed with a gain of N1.46 to close at N38.00 while Ashaka Cement added N1.00 to close at N29.00, among other gainers. On the other hand, Oando led the pack of losers with a loss of 99 kobo to close at N69.00. International Breweries followed with a loss of 27 kobo to close at N6.22 while Oceanic Bank shed 14 kobo to close at N2.86, among other gainers. Further analysis of the days trading showed that the banking subsector remained the most active in terms of volume with a turnover of 248.3 million shares worth N2.6 billion in 3,855 deals. The sector was driven by the activities in the shares of Zenith Bank with a turnover of 106.1 million valued at N1.6 billion in 456 transactions while Bank PHB followed with a turnover of 18.9 million shares valued at N38.6 million in 117 deals. Capital Oil Plc, listed in the emerging market sector, followed the banking subsector with a turnover of 25 million shares valued at N12.5 million in four deals while Mortgage companies, buoyed with the activities in the shares of Resort Savings and Loan, ranked third with a turnover of 20.8 million shares valued at N10.4 million in one transactions. On the whole, investors exchanged a turnover of 362.5 million valued at N3.8 billion in 6,476 deals. Transaction closed on a high note on Friday. Market capitalisation appreciated by N14 billion to close at N8.514 while the All-Share Index rose by 45.14 basis point to close at 26,639.35.
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