About The Market Today 02/09/09

The clean up exercise in Nigerian banks embarked upon by the Central Bank of Nigeria (CBN), has continued to take its toll on the Nigeria Stock Market as equity prices continued its downwards trend.

At the close of trading today, the benchmark All share index declined 167.07 points or 0.74 percent to close at 22,393.77 from 22,560.84 points the previous day.

The market which had continue to fall since last Friday, had resumed last Monday on a poor note with the index declining by 1.3 percent.

Similarly, the market capitalization fell by N38.30 billion or 0.74 percent to close at N5,133.37 billion from N5,171.67 billion the previous day.

Market patronage in terms of Volume of shares exchanged by investors rise by 322.59 million ordinary shares or 87.78 percent when compared with the position of last trading day. In essence, an aggregate of 690.07 million ordinary shares were traded in 6,370 deals today as against a volume of 367.48 million traded in 6,460 deals in the previous transaction.

Turnover by value was on the upswing as it close at N3.84 billion; N1.45 billion or 60.67 percent rise as against N2.39 billion worth of stocks traded in the previous trading day

Table 1

Market Statistics

Guinness Plc lead the top gainers list again as the stock added N6.48 or 5.00 percent to its share price to close the market at N129.67 from its opening price of N193.11. Benue Cement Company (BCC) Plc came second on the list, having gained N1.00 or 2.56 percent as it opened and closed the day at N39.00 and N40.00 respectively.

Table 2

Figure 1

Top 5 Price Gainers

2

On the losers’ chart, Oando Plc lead the table for the day as the company share price declined by N2.50 or 2.66 percent to close the market at N91.50 per share, from it opening price of N94.00. Followed on the Chart was Conoil Plc that lost N2.10 or 4.61 percent to close the day at N43.50 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 308.47 million ordinary shares traded to control 44.70 percent of the aggregate volume of shares traded. The 2^nd Tier sector, with 250.01 million ordinary shares, traded trailed behind the Banking sector which represents 36.23 percent of the total volume traded.

Figure 3

Capital Oil Plc emerges first as the most patronized stock for the day. Investors traded 250.01 million ordinary shares to controlled 100 percent of the aggregate volume traded in the 2^nd Tier Securities Sector and 36.23 percent of the entire market. Zenith Bank Plc (84.80 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:

DELISTING:

The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company, for which the stock is issued, whether voluntarily or involuntarily, is not in compliance with the listing requirements of the exchange.

The reasons for delisting include violating regulations and/or failing to meet financial specifications set out by the stock exchange. Companies that are delisted are not necessarily bankrupt, and may continue trading over the counter.
In order for a stock to be traded on an exchange, the company that issues the stock must meet the listing requirements set out by the exchange. Listing requirements include minimum share prices, certain financial ratios, minimum sales levels, and so on. If listing requirements are not met by a company, the exchange that lists the company’s stock will probably issue a warning of non-compliance to the company. If the company’s failure to meet listing requirements continues, the exchange may delist the company’s stock.