DAILY STOCK MARKET WATCH

(About The Market Today 04/06/09)

More profit takers (Investors selling to realize part of price growth recorded by stocks) thronged the stock market today and halted the bull run witnessed in the past weeks.

Market operators said the arrival of the profit takers was expected, given the fast recovery some of the stocks had made.

The overall transactions traded today shows that The Nigerian Stock Exchange (NSE) All-share index dropped by 678.62 points or 2.24 percent to stand at 29,514.80 points in contrast to 30,193.42 points posted in yesterday’s transaction.

Moreover, market patronage in terms of Volume of shares exchanged by investors dropped by 355.79 million ordinary shares or 41.56 percent when compared with the position in the preceding day. In essence, an aggregate of 500.23 million ordinary shares were traded in 15,060 deals today as against a volume of 856.02 million traded in 14,284 deals in yesterday trading.

Turnover by Value was on the downswing today as it closed at N4.69 billion; a N2.11 billion or 31.03 percent dropped as against N6.80 billion worth of stocks traded yesterday.

Market Capitalization of the listed 207 equities dropped by N154.45 billion or 2.25 percent to close the day at N6,717.43 billion in contrast to N6,871.88 billion in yesterday trading.

Table 1

Market Statistics

Total Plc lead the top gainers list as the stock added N7.50 or 5.00 percent to its share price to close the market at N157.50 from its opening price of N150.00. Nigeria Breweries Plc came second on the list, having gained N2.30 or 4.60 percent as it opened and closed the day at N50.00 and N52.30 respectively.

Table 2

Figure 1

Top 5 Price Gainers

On the losers’ chart, Oando Plc again lead the table for the day as the company share price declined by N4.55 or 4.20 percent to close the market at N86.45 per share, from it opening price of N91.00. Followed on the Chart was Conoil Plc that lost N2.50 or 4.98 percent to close the day at N60.00 per share.

Table 3

Figure 2

Top 5 Price Losers

Trading Activities (Sectors/Individuals)

The Banking sector again emerges as the top traded Sector in volume among the 30 listed sectors in the Nigeria Stock Exchange Floor. The sector recorded 252.89 million ordinary shares traded to control largely 50.55 percent of the aggregate volume of shares traded. The Insurance sector, with 131.92 million ordinary shares, traded trailed behind the Banking sector which represented 26.36 percent of the total volume traded.

Figure 3

Zenith Bank Plc emerges first as the most patronized stock for the day. Investors traded 48.08 million ordinary shares to controlled 19.01 percent of the aggregate volume traded in the Banking sector and 9.61 percent of the entire market. Platinum Bank Plc (35.55 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

The Banking sector was the most active in value traded as the stocks worth N3,485.07 million for a 74.38 percent of the aggregate traded value for the day. The Food/Beverages & Tobacco sector (N341.63 million) followed, representing 7.29 percent of the overall value traded.

Figure5

Analysis on individual company basis showed that Zenith Bank Plc lead the highest trading by value at N1,157.88 million today. The figure controlled 25.11 percent of total traded value in the Banking sector and 16.50 percent of the overall value traded for the whole market. Ecobank Transnational Incorporated Plc (N389.19 million) was the second highest.

Table 5

5 Most Traded Stocks by Value

Figure 6

5 Most Traded Stocks by Value

Market Capitalization:

First Bank of Nigeria Plc is the highest capitalized stock at N535.30 billion today. This was followed by Zenith Bank Plc with 438.71 billion. Nigeria Breweries Plc N395.52 billion, United Bank for Africa Plc 340.48 billion and Dangote Sugar Plc N275.88 billion to maintained the third, fourth and fifth positions respectively.

Table 6

5 Most Capitalized Stocks

Figure 7

5 Most Capitalized Stocks

Monetary Policy Rate: 8.00 %

Business News

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Term for the Day

Stock Switching

If you liquidate a short term or long term position by exchange of one stock for another in your stock investment, the process is known as switching. You could resort to this method in stock investment, if you feel that the stock you acquire has good growth prospects or would have a higher yield. Sometimes, there would be some excess cash when stock switching is done and this could be utilized for augmenting your stock investment by buying other valued stocks.