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- NSE Blames CBN for April Loss
NSE Blames CBN for April Loss
- By Kayode Ogunwale
- Published May 11th, 2010
- StockWorld
- Unrated
ACTIVITIES on the floor of the Nigerian stock exchange (NSE) which started the month of April on a bullish note had by the third week began to lose momentum.
The loss was attributed in part to the initial reaction to the CBN’s position on the use of banking shares as collateral for lending and the not too impressive audited results released by some quoted companies. The market recorded a turnover of 12.6 billion shares valued at N108.31 billion in 206,182 deals in April in contrast to a total of 10.73 billion shares valued at N91 billion exchanged during March in 185,643 deals. Consequently, trading volume and value rose by 17 per cent and 19 per cent, respectively. In March, trading volume and value rose by 37 per cent and 68 per cent, respectively. Trading days in April was 20, compared to 23 in March.
Aggregate stock market turnover between January and April 2010 were 39.5 billion shares valued at N300.1 billion exchanged in 821,131 deals. In the comparable period during 2009, the market recorded turnover of 27.15 billion shares valued at N150.55 billion in 549,356 deals. The banking sub-sector was the most active (measured by turnover volume) with traded volume of 5.3 billion shares valued at N59.75 billion exchanged in 88,246 deals while the Insurance sub-sector was second with traded volume of 3.2 billion shares valued at N3.1 billion exchanged in 20,778 deals. The mortgage companies’ sub-sector was third with transaction volume of 698.31million valued at N415.21 billion traded in 2,303 deals while the food, beverages and tobacco sub-sector was fourth with transaction volume of 585.2 million shares valued at N12.36 billion traded in 23,034 deals. The Automobile/Tyre sub-sector was fifth with transaction volume of 285.7 million shares valued at N600.15 million traded in 979 deals. Consequently, the five sub-sectors accounted for 10.0 billion shares valued at N76.21 billion exchanged by investors in 135340 trades. In March, the five most active sub-sectors traded 6.5 billion shares valued at N41.5 billion exchanged in 95,420 trades. A total of 175 equities out of the listed 214 were traded during the month compared to 183 in March. First Bank of Nigeria Plc was the most active stock with transaction volume of 979.63 million shares followed by Zenith Bank Plc with 585.01 million shares while UBA Plc placed third with 527.5 million shares. The top 3 most active stocks accounted for 2.1 billion shares or 16.6 per cent of total traded stocks while the top 5 most active stocks accounted for 2.93 billion or 23.3 per cent of total transactions during the month.
During the month, seven companies from the banking sub-sector, two from the Insurance sub-sector and one from the mortgage companies’ sub-sector were represented in the top 10 actively traded stocks during the month. The remaining 165 traded stocks accounted for 8.03 billion or 64 per cent. In March, eight banks and one stock each from the conglomerates and Insurance sub-sectors accounted for the top 10 actively traded stocks during the month.
Meanwhile, the market value of the 262 listed securities closed at N8.45 trillion, up by 1.2 per cent from N8.4 trillion recorded in March. The rise in market capitalisation can be attributed to the rise in the prices of equities especially during the first two weeks of the month.
18 sub-sectors recorded increased market capitalisation of between 0.6 per cent and 44.82 per cent while twelve sub-sectors suffered reduction in market capitalisation of between 0.3 per cent and 11.1 per cent. Five sub-sectors did not record any change in market capitalisation. However, in the preceding month, 25 sub-sectors recorded increased market capitalisation of between 0.2 per cent and 48.5 per cent while six sub-sectors suffered reduction in market capitalisation of between 0.9 per cent and 6.3 per cent. Four sub-sectors did not record any change in market capitalisation.
The loss was attributed in part to the initial reaction to the CBN’s position on the use of banking shares as collateral for lending and the not too impressive audited results released by some quoted companies. The market recorded a turnover of 12.6 billion shares valued at N108.31 billion in 206,182 deals in April in contrast to a total of 10.73 billion shares valued at N91 billion exchanged during March in 185,643 deals. Consequently, trading volume and value rose by 17 per cent and 19 per cent, respectively. In March, trading volume and value rose by 37 per cent and 68 per cent, respectively. Trading days in April was 20, compared to 23 in March.
Aggregate stock market turnover between January and April 2010 were 39.5 billion shares valued at N300.1 billion exchanged in 821,131 deals. In the comparable period during 2009, the market recorded turnover of 27.15 billion shares valued at N150.55 billion in 549,356 deals. The banking sub-sector was the most active (measured by turnover volume) with traded volume of 5.3 billion shares valued at N59.75 billion exchanged in 88,246 deals while the Insurance sub-sector was second with traded volume of 3.2 billion shares valued at N3.1 billion exchanged in 20,778 deals. The mortgage companies’ sub-sector was third with transaction volume of 698.31million valued at N415.21 billion traded in 2,303 deals while the food, beverages and tobacco sub-sector was fourth with transaction volume of 585.2 million shares valued at N12.36 billion traded in 23,034 deals. The Automobile/Tyre sub-sector was fifth with transaction volume of 285.7 million shares valued at N600.15 million traded in 979 deals. Consequently, the five sub-sectors accounted for 10.0 billion shares valued at N76.21 billion exchanged by investors in 135340 trades. In March, the five most active sub-sectors traded 6.5 billion shares valued at N41.5 billion exchanged in 95,420 trades. A total of 175 equities out of the listed 214 were traded during the month compared to 183 in March. First Bank of Nigeria Plc was the most active stock with transaction volume of 979.63 million shares followed by Zenith Bank Plc with 585.01 million shares while UBA Plc placed third with 527.5 million shares. The top 3 most active stocks accounted for 2.1 billion shares or 16.6 per cent of total traded stocks while the top 5 most active stocks accounted for 2.93 billion or 23.3 per cent of total transactions during the month.
During the month, seven companies from the banking sub-sector, two from the Insurance sub-sector and one from the mortgage companies’ sub-sector were represented in the top 10 actively traded stocks during the month. The remaining 165 traded stocks accounted for 8.03 billion or 64 per cent. In March, eight banks and one stock each from the conglomerates and Insurance sub-sectors accounted for the top 10 actively traded stocks during the month.
Meanwhile, the market value of the 262 listed securities closed at N8.45 trillion, up by 1.2 per cent from N8.4 trillion recorded in March. The rise in market capitalisation can be attributed to the rise in the prices of equities especially during the first two weeks of the month.
18 sub-sectors recorded increased market capitalisation of between 0.6 per cent and 44.82 per cent while twelve sub-sectors suffered reduction in market capitalisation of between 0.3 per cent and 11.1 per cent. Five sub-sectors did not record any change in market capitalisation. However, in the preceding month, 25 sub-sectors recorded increased market capitalisation of between 0.2 per cent and 48.5 per cent while six sub-sectors suffered reduction in market capitalisation of between 0.9 per cent and 6.3 per cent. Four sub-sectors did not record any change in market capitalisation.
