WITH investors renewed interest in stocks at the Nigerian stock market over the recently signed into law of the Asset Management Company of Nigeria (AMCON) Bill, banking stocks have continued to dominate activities in equities market.Banking stocks continues to enjoy patronage from both small and institutional investors taking positions in the shares of the banks in anticipation that the Bill will turnaround the fortunes of the financial industry.An x-ray of trading activities on the floor of the exchange since the commencement of business in the year showed that transaction in the banking subsector had witnessed tremendous growth in percentage when compared to what obtained prior to the AMCON Bill and growth in other subsectors in the equities market in the month of January.The banking industry, it will be recalled, was the most hit in terms of price depreciation in the value of their stocks following exposure to toxic loans whose present estimate is put at N2.2 trillion.The loan repayment had been a burden on the banks and even the regulatory authorities who were dazzled at the value erosion the banks` health situation was having on the domestic economy.AMCON has taken over the bad debts in the banks, thereby giving them a new lease of life. As shares in the subsector have become the bride of investors, the present investment in the industry has been put tentatively at over N1 trillion as at last Monday.CBN intervention The AMCON, as a scheme introduced by the Central Bank of Nigeria (CBN), along side other regulatory agencies in the market, was aimed at soaking the over N2.2 trillion bad debt incurred by banks in the country. Most of the listed banks` bad debts were incurred in form of margin facilities to stockbrokers/issuing houses in the purchase of shares and investment in both the down and offshore oil business while others were as a result of insider abuse of loans by directors of the banks.Transaction figures posted by the banksAt the close of transaction on Friday, cumulative transaction in the banking sector was the most active during the week, measured by turnover volume of 1.88 billion shares worth N16.81 billion exchanged by investors in 20,403 deals.However, while the Food/ Beverage index appreciated by 25.77 points of 3.05 per cent to close at 861.90, the NSE Insurance index appreciated by 1.88 points or 0.94 per cent to close at 186.29. The NSE Banking index depreciated by 19.21 points or 4.21 per cent to close at 443.46 and the NSE Oil/Gas index depreciated by 1.59 points of 0.41 per cent to close at 362.12 basis points.Trading in the shares of First Bank of Nigeria, FinBank Plc, Unity Bank Plc and Bank PHB Plc. accounted for 962.0 million shares, representing 51.1 per cent and 36.6 per cent of the subsectors turnover and total volume traded during the week respectively.NSE value added growth driveBefore transaction on the Exchange took off in the year, the Nigerian Stock Exchange (NSE) did come up with a road map aimed at helping to deepen the equities market for improved investment yield to investors.The NSE said while the on-going reforms in the market were currently achieving its desired result, there was need to put structures in place that would assist in sustaining the laudable improvement in operation in the market in the last seven months of 2011.Speaking on other issues that would make the market become virile in the year, the Sole Administrator said the Exchange would, in the course of the year, introduce market makers, whose operations would bring some fundamental changes in the trading processes even as the Exchange would engage licensing of designated advisers who would anchor the operations of soon-to-be launched Alternative Securities Market/Private Placement Exchange (ASEM/PRIPEX).There will be provision of alternative capital raising mechanisms that will deepen the market and improve liquidity, resolving issues surrounding stock lending and stock borrowing to allow these activities debut in our market in the new year; facilitating the early take off of the completed Contact Center which will act as the Exchanges first line effort at resolving investors complaints as well as facilitate information flow between investors and the market.Equities tradingTransaction opened the week on the upward rise as more blue-chip stocks joined the league of gainers, resulting it a further rise in market capitalisation by N27 billion or 0.30 per cent increase.Turnover increased significantly from 680million shares worth N9 billion traded in 5611deals on Friday to 795 million units valued at N7.3 billion exchanged in 7611 deals.47 stocks recorded price appreciation compared to 19 that suffered depreciation. The All-Share Index rose by 85.71 basis points or 0.3 per cent from 27,684.40 traded on Friday to 27,770.11 while market capitalisation increased by N27 billion or 0.3 per cent from N8,848 to N8,875.Further review of activities in the day showed that, Nigerian Aviation Handling Company led the bulls up percentage change with five per cent to close at N11.55 per share. Niger Insurance followed with five per cent to close at N1.05 per share.Nigerian Bottling Company, Oceanic Bank, UAC-Properties added 4.98 per cent, 4.97 per cent and 4.97 per cent to close at N38.58, N3.80 and N17.79 per share respectively.N19.4 million in 54 deals while the Insurance subsector featured with 27.8 million units valued at N42.5 million in 45 deals.Investment on the trading floor of the Exchange closed in a positive note on Tuesday with both market performance indices recording marginal gains of 0.1 per cent or N9 billion .A review of trading in the day showed that market capitalisation of equities appreciated marginally by N9 billion or one per cent to close at N8.884 trillion, while the All Share Index increased by 27.28 basis points or one per cent to close at 27,797.39 index points as against 27770.11 as its opening index.57 stocks appreciated in price as against 18 others that shed value. Total Nigeria Plc led the price gainers chart with a gain of N6.00 to close at N240.00. Northern Nigerian Flour Mills followed with a gain of N2.09 to close at N43.96, while Guinness Nigeria added N2.83 to close at N230.00.On the downward side, Access Bank led the losers table with a loss of 50 kobo to close at N10.50. SkyeBank followed with a loss of 45 kobo to close at N9.25 while Ecobank Transitional Incorporated (ETI) shed 35 kobo to close at N16.50.Further analysis showed that the banking sub-sector remained the most active in terms of volume with a turnover of 528.5 million shares worth N5.7 billion in 4,142 deals.The sector was boosted by the activities in the shares of FirstBank with a turnover of 228.03 million shares worth N3.6 billion in 707 transactions while Unity Bank followed with a turnover of 42.8 million shares valued at N81.8 in 143 transactions.On the whole, investors staked a total of 780.7 million shares worth N7.5 billion in 7,059 transactions.Trading on Wednesday saw profit-taking by investors depressing the market indices despite price gains that outweighed losses, resulting to a slide in market capitalisation by N9billion.Volume of shares traded also dropped significantly, as investors staked 344.3 million shares worth N3 billion in 6,974 deals down from 780.7million units valued at N7.4 billion exchanged in 7,059deals on Tuesday.With 37 stocks appreciating in price compared to 30 that suffered depreciation, the All-Share Index which measures the performance of quoted companies fell by 27.86 basis point or 0.1 per cent from 27,797.39 recorded on Tuesday to 27,769.52, while market capitalisation dropped by N9 bilion from N8,884trillion to N8,875 trillion.On the price movement chart, petroleum major, Total Nigeria Plc emerged the highest loser with 6 per cent drop (N2.50), to close at 234 per share. Guinness Nigeria followed with 5 per cent decline (N2.22), to close N220 per share.UACN Plc dropped 0.67 per cent (N1.69), to close at N39 per share in third place, while Zenith Bank Plc and Ashaka Cement Plc dipped by 0.59 (N3.56) and 0.51 (N1.70), per cents to close at N16 and N29.49 per share respectively.On the other hand, Nestle Nigeria Plc topped the gainers table with 5.15 percent to close at N410.15 share while PZ Plc followed with 0.50 per cent respectively to close at N33.50 per share.Construction giant company, Julius Berger Plc added 0.45 percent to close at N54 per share. Stanbic-IBTC Plc and Champion Breweries Plc gained 0.17, and 0.11 per cents to close at N10.33 and N2.45 per share respectively among other gainers.The banking sub sector remained the most active stock in volume terms with 229 million shares valued at N1.51 billion exchanged in 4,011 deals as against 263.9million shares worth N2.1billion in the previous activity.The Insurance sub-sector followed with 29 million shares worth N26.32 million swapped in 309 deals over 20.1million units worth N23.1million traded the preceding day.In all, investors swapped 342.32 million shares for N3.39 billion in 6,903 deals.Trading on the equities market closed this week, Friday, on a downward note as market capitalisation of all equities dropped further by N68 billion while the All-Share Index slid also by 212.37 basis points.A review of transaction last week showed that Flourmill Nigeria Plc led the gainers chart with 8.22 per cent. Nestle Nigeria, African Petroleum Plc, Julius Berger plc and Northern Nigeria Flourmills Plc followed closely with 1.32, 14.91, 5.9 and 5.0 per cent, while Guinness Nigeria, Nigerian German Chemical, Guaranty Trust Bank, Access Bank Plc and Diamond Bank Plc led the pack of the five top most stocks which depreciated. They fell by 5.8, 3.9, .0.95, 9.7 and 4.63 per cent.A turnover of 2.63 billion shares worth N24.95 billion in 35,419 deals was recorded last week, in contrast to a total of 2.67 billion shares valued N27.31 billion exchange previous week in 35,054 deals.
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