About The Market Today 26/08/09

The bull consolidated their hold on the stock market today pushing up the market capitalization of the Nigerian Stock Exchange (NSE) by N113.60 billion to close at N5,382.30 billion.

After losing N519 billion last weeks, following reactions to the Central Bank of Nigeria’s (CBN) removal of the managing director of five banks, the market rebounded with a growth of 2.30 percent today.

Investors who found the current levels of stock prices as an opportunity to increase their holdings were buying some of the stocks.

The upward trend of the Nigerian Stock Exchange index continues and it rise by 2.16% from 22,984.14 to close at 23,479.72.

Market patronage in terms of Volume of shares exchanged by investors rise by 21.62 million ordinary shares or 6.92 percent when compared with the position of last trading day. In essence, an aggregate of 334.27 million ordinary shares were traded in 5,459 deals today as against a volume of 312.65 million traded in 5,606 deals in the previous transaction.

Turnover by value was on the downswing as it close at N2.30 billion; N0.01 billion or 0.43 percent drop as against N2.31 billion worth of stocks traded in the previous trading day

Table 1

Market Statistics

Total Plc lead the top gainers list again as the stock added N6.23 or 4.99 percent to its share price to close the market at N131.00 from its opening price of N124.77. Benue Cement Company Plc came second on the list, having gained N1.72 or 4.98 percent as it opened and closed the day at N34.56 and N36.28 respectively.

Table 2

Figure 1

Top 5 Price Gainers

2

On the losers’ chart, Guinness Plc lead the table for the day as the company share price declined by N2.50 or 1.79 percent to close the market at N137.00 per share, from it opening price of N139.50. Followed on the Chart was Nestle Plc that lost N1.88 or 0.91 percent to close the day at N204.99 per share.

Table 3

Figure 2

Top 5 Price Losers

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 147.11 million ordinary shares traded to control 44.01 percent of the aggregate volume of shares traded. The Insurance sector, with 63.23 million ordinary shares, traded trailed behind the Banking sector which represents 18.92 percent of the total volume traded.

Figure 3

Dangote Flour Mill Plc emerges first as the most patronized stock for the day. Investors traded 29.14 million ordinary shares to controlled 66.91 percent of the aggregate volume traded in the Food/Beverages & Tobacco Sector and 8.72 percent of the entire market. Platinum Bank Plc (28.05 million ordinary shares) emerged second position on the list.

Table 4

5 Most Traded Stocks by Volume

Figure 4

5 Most traded Stocks by Volume

Monetary Policy Rate: 6.00 %

Business News

Term of the day:

MEAN RETURN:

Mean returns attempt to quantify the relationship between the risk of a portfolio of securities and its return. It assumes that while investors have different risk tolerances, rational investors will always seek the maximum rate of return for every level of acceptable risk. It is the mean, or expected, return that investors try to maximize at each level of risk.