Market Analysis for 25-08-09

by Ope on August 25th, 2009

filed under Capital Market, Make Money, News

About The Market Today 25/08/09

The Nigerian Stock Market made a surprise rebound yesterday and today as some discerning investors took advantage of low prices of bank and insurance stocks among others.

As anxiety and panic grew among investors, low demand weakened stock prices last week.

At the close of trading today, the All share index, which shows the direction of stocks prices rise by 2.33 percent to close at 22,984.14 from 22,460.08 points the previous day, while the Market capitalization appreciated by N120.13 billion or 2.33 percent.

Market patronage in terms of Volume of shares exchanged by investors drop by 311.64 million ordinary shares or 49.92 percent when compared with the position of last trading day. In essence, an aggregate of 312.65 million ordinary shares were traded in 5,606 deals today as against a volume of 624.29 million traded in 6,324 deals in the previous transaction.

Turnover by value was on the downswing like volume as it closed at N2.31 billion; N0.79 billion or 25.48 percent drop as against N3.10 billion worth of stocks traded in the previous trading day

Table 1

Market Statistics

Today

25/08/2009

Previous day

24/08/2009

%

Change

NSE All-

Share Index

22,984.14

22,460.08

2.33

Total

Deals

5,606

6,324

-11.35

Volume

Traded

(M)

312.65

624.29

-49.92

Value

Traded

(N’B)

2.31

3.10

-25.48

Turn

Over

Ratio %

0.06

0.12

-50.00%

Change Point

Mkt.

Capt.

(N’B)

5,268.70

5,148.57

2.33

Oando Plc lead the top gainers list again as the stock added N4.49 or 4.75 percent to its share price to close the market at N98.99 from its opening price of N94.50. Conoil Plc came second on the list, having gained N2.46 or 4.98 percent as it opened and closed the day at N49.35 and N51.81 respectively.

Table 2

Stock

Opening

Price

(N:K)

Closing

Price

(N:K)

Absolute Change

(N:K)

% rise

OANDO

94.50

98.99

+4.49

4.75

CONOIL

49.35

51.81

+2.46

4.98

BCC

32.92

34.56

+1.64

4.98

WAPCO

31.00

32.50

+1.50

4.84

FLOURMILL

19.45

20.42

+0.97

4.99

Figure 1

Top 5 Price Gainers

2clip_image004

On the losers’ chart, 7UP Plc lead the table for the day as the company share price declined by N1.60 or 5.00 percent to close the market at N30.40 per share, from it opening price of N32.00. Followed on the Chart was Guinness Plc that lost N1.50 or 1.06 percent to close the day at N139.50 per share.

Table 3

Stock

Opening

Price

(N:K)

Closing

Price

(N:K)

Absolute Change

(N:K)

% drop

7UP

32.00

30.40

-1.60

5.00

GUINNESS

141.00

139.50

-1.50

1.06

ETERNAOIL

16.85

16.01

-0.84

4.99

DNMEYER

8.07

7.67

-0.40

4.96

PORTPAINT

7.76

7.38

-0.38

4.90

Figure 2

Top 5 Price Losers

clip_image006

Trading Activities (Sectors/Individuals)

The Banking sector emerges as the top traded Sector today in volume among the 30 listed sectors in the Nigeria Stock Exchange Floor. The sector recorded 145.57 million ordinary shares traded to control 46.53 percent of the aggregate volume of shares traded. The Insurance sector, with 59.25 million ordinary shares, traded trailed behind the Banking sector which represents 18.95 percent of the total volume traded.

Figure 3

clip_image008

Fidelity Bank Plc emerges first as the most patronized stock for the day. Investors traded 24.24 million ordinary shares to controlled 16.66 percent of the aggregate volume traded in the Banking Sector and 7.75 percent of the entire market. First Bank Plc (7.75 million ordinary shares) emerged second position on the list.

Table 4

5 Most Traded Stocks by Volume

Stock

Price

(N: K)

Volume

(M)

FIDELITYBK

1.85

24.24

FIRSTBANK

13.99

18.73

ASOSAVINGS

0.79

17.91

PLATINUM

3.98

15.46

AIICO

0.91

15.37

Figure 4

5 Most traded Stocks by Volume

clip_image010

Monetary Policy Rate: 6.00 %

Business News

Term of the day:

ABNORMAL RETURN:

A term used to describe the returns generated by a given security or portfolio over a period of time that is different from the expected rate of return

An abnormal return can be either a good or bad thing, as it is merely a summary of how the actual returns differ from the predicted return. For example, earning 30% in a mutual fund that is expected to average 10% per year would create a positive abnormal return of 20%. If, on the other hand, the actual return was 5%, this would generate a negative abnormal return of 5%.

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