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Hope rises in equities market over new CEO ...As Nestle, Mobil Oil lead gainers' table
Investors' appetite for shares likely to increase
FOLLOWING the assumption of office of the newly appointed Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema last week, a new lease of life may have finally been breathed into the equities market which serves as investors' haven.
Many investors, especially the small portfolio holders, had waited patiently for the stock market to have a new head that would be saddled with the responsibility of directing affairs of the market even as they called for a holistic reform in the market.
Investors in the market had, since the change of baton last August when the Securities and Exchange Commission (SEC) removed Prof. Ndi Okereke-Onyuike as the Director- General of the stock market, been apprehensive of the fate of their investment.
The investors, both domestic and international, were particularly bothered that leaving the operation of a market whose value was in trillion, after the global financial contraption, in the hand of an Interim Administrator, was likely to do more harm than good to investment value in the securities market.
Also, some investors with whom the removal of Okereke-Onyuike did not go down well, saw the seven-month period, before the assumption of Onyema, as a time they had to exercise some restraint about playing the equities market.
A cross-section of stakeholders and handful of shareholders in the market, who bore their minds on the coming on board of the new CEO, said why the procedure for the removal of the former DG was still a subject of litigatation having a substantive CEO in place would brighten the integrity of the market both locally and internationally.
They said there was somebody at the helm of affairs of the market who could now be held responsible on any issue that directly or indirectly affected the market just as every transaction in the market would now be benchmarked with the issue of corporate governance.
It will be recalled that prior to the sack of Okereke-Onyuike by SEC, investors were battling to recover from a meltdown in the value of equities which saw them losing about 70 per cent or a cumulative of N9 trillion of their investment due to the global financial crisis.
With the Nigerian stock market having a CEO when it is still election period in the country, investors are of the belief that confidence in the market, whose bouncing back is although subject to other variables like stability in the political and economic arena, will definitely return in due course.
Investors task headship of NSE
Stakeholders in the Nigerian capital market have asked the new CEO of the NSE to operate at a level playing field in the market just as they challenged him to respect the rule of law in his present assignment.
The investors, especially those tagged common investors, also advised that Oscar, in trying to live above board and bringing the much desired growth and development to the market in the shortest possible time, must allow transparency to be his watchword as anything done contrary would be inimical to the much sought return of confidence to the market.
Speaking with the Nigerian Tribune on Friday on their expectations from the new CEO, some senior stockbrokers who would not want to be mentioned in print said that it was the responsibility of the Exchange to maintain the trading platform and ensure that it performed appropriately to enhance trading activities, making market operators perform their trading role and effect seamless transfer of shares.
While advising the investing public on market situation, they said that the new CEO should continue to make sure that the platform is effective for efficient transactions.
In his comment, a founding member of Shareholders Solidarity Association of Nigeria, Chief Olatokunbo Gbadebo, pointed out that another expectation from the new CEO was to ensure accountability and stability in the management of the NSE. He explained that the new CEO, having worked with the US Stock Exchange, had all it takes to achieve this, noting that with his vast experience in financial matters, he would understand the operations and processes of the Exchange, he added.
“Another expectation is ability to maintain stability in the management of the exchange. He has been in US market which is a developed one, meaning he understands the operations and processes of the Stock Exchange and on that note, the confidence is not in doubt.
Equity transaction last week
Confirming the anxiety generated by doubts on the possibility of the equities market bouncing back on the resumption of a new CEO for the market yesterday, transactions on the floor of Nigerian Stock Exchange yesterday opened in the red as both market performance indices dipped further by 0.34 per cent. Consequently, the market capitalisation of equities dropped by N27 billion or 0.34 per cent to close at N7.881 trillion while the All-Share Index equally plummeted by 84.39 basis points or 0.34 per cent to close at 24,667.66 index points as against the opening index of 24,752.05. At the close of the day’s trading, 18 stocks appreciated in prices as against 27 others that shed value. Capital Hotel led the percentage gainers’ chart with a gain of five per cent to close at N3.15. UBA followed with a gain of 4.89 per cent to close at N8.37 kobo while Fin Bank recorded a gain 4.41 per cent to close at 71 kobo. On the other hand, Cadbury led the pack of losers with a loss of five per cent each to close at N20.90. Nascon followed with a loss of 4.90 per cent to close at N5.24 while Bank PHB shed 4.88 per cent to close at N1.17.
The banking sub-sector buoyed by the activities in the shares of Diamond Bank and GTB remains the most active in terms of volume with a turnover of 185 million shares valued at N1.6 billion in 3,502 deals. Conglomerates sub sector boosted by the transactions in the shares of Transcorp followed with a turnover of 16.8 million shares worth N70.3 million in 138 deals while Insurance sub-sector fuelled by the transactions in the shares of AIICO Insurance followed with a turnover of 12.1 million shares worth N10.9 in 223 deals. In all, investors staked a turnover of 250.5 million shares valued at N2.3 billion in 6,115 transactions. Investors’ wealth on Tuesday at the NSE hitched up at the close of transaction in the market as blue chip stocks enjoyed price appreciation resulting in higher closure of the market capitalisation by N21 billion.
Turnover of shares traded also rose significantly yesterday, as investors swapped 417.9 million shares, worth N2.9 billion in 6,575 deals, compared to 250.4 million units valued at N2.2 billion, recorded in 6,115 deals on Monday.
At the close of trading in the day, moreover, 25 stocks recorded upward price movement ahead of 31 others on the losers table.
A further review of the market showed that, the All-Share index of the Exchange rose by 67.48 points or 0.27 per cent, from 24,667.66 points recorded on Monday to 24,735.14, while market capitalisation appreciated by N21 billion or 0.27 per cent, from N7.881 trillion to N7.902 trillion Continental Insurance Plc topped the day’s gainers table with 5.00 per cent to close at N1.05 per share. While Presco and NAHCO Plc followed with 4.98 per cent rise to close at N6.74 and N9.28 per share. Transcorp Plc and Sterling Bank Plc added 4.96 and 4.95 per cent to close at N1.27 and N 2.33 per share.
However, Fidson Plc, Custodian Assurance Plc, UPL Plc, Vono Plc and ABC transport Plc, fell by 5.00, 5.00, 5.00, 5.00 and 4.92 per cent to close the day at N1.90, N2.85, N4.37, N2.66 and 58 kobo respectively.
According to the bulk of transaction in the day, the banking sub-sector exchanged 212.6 million shares worth N1.8 billion, followed by the Conglomerate with 48.3 million shares, valued at N139.7 million.
On the whole, investors swapped 417.9 million ordinary shares worth N2.859 billion at 6,575 deals.
Transaction on the NSE went down, contrary to investors’ expectation that the assumption of office of the new Chief Executive Officer of the Exchange, Mr. Oscar Onyema would boost confidence in the market.
Equities value at the end of the days trading dropped by N41 billion
Turnover of shares traded also dropped in the day, as investors swapped 2217.7 million shares, worth N2.2 billion in 5,921 deals, compared to 417.9 million units, valued at N2.9 billion recorded in 6,575 deals on Tuesday.
Particularly, at the close of trading in the day, 28 stocks recorded upward price movement ahead of 18 others on the losers table.
A further review of the market showed that the All-Share index of the Exchange depreciated by 126.2 points or 0.51 per cent from 24735.14 points recorded on Tuesday to 24,608.94, while market capitalisation fell by N40 billion or 0.51 per cent, from N7.902 trillion to N7.862 trillion NAHCO Plc topped the day’s gainers table with 4.96 per cent to close at N9.74 per share. While Diamond Bank and Custodian Assurance Plc followed with 4.96 and 4.91 per cent rise to close at N5.93 and N2.99 per share. Cadbury Nigeria Plc and Presco Plc added 4.90 per cent each to close at N20.98 and N7.07 per share.
However, PZ Cusson Plc, Ecobank Plc, Starcomms Plc, FTN Cocoa Plc and Law Union and Rock Plc, fell by 4.47, 4.34, 3.85, 3.85 and 3.85 per cent to close the day at N28.66, N3.97, 75 kobo, 50 kobo and 50 kobo respectively.
According to the bulk of transaction yesterday, the banking sub-sector exchanged 148.1 million shares worth N1.3 billion, followed by the Conglomerate with 17.29 million shares, valued at N176.6 million.
Equity transactions on the Exchange closed in an upbeat Thursday, occasioned by heavy share price gains recorded by major blue chip companies, causing market capitalisation to inch up by N44billion.
Also, heavy transactions in the shares of TransNational Corporation in the conglomerates sub-sector also increased the volume of shares traded, as 591.5million shares worth N2.2billion changed hands in 5,714 deals, over 221.7million ordinary shares valued at N2.2billion exchanged in 5,921 deals on Wednesday. Specifically, at the close of transactions in the day, 32 companies led by First Aluminium appreciated in price with five per cent to close at N0.63 per share. Ecobank TransNational Incorporated followed with 4.97per cent to close at N16. 27 per share.
Niger Insurance added 4.92 per cent to close at N0.64 per share while Eternaoil gained 4.82 per cent to close at N5.00 per share.
PZ Cussons, TransNational Corporation, Airservice also added 4.68, 4.51 and 4.46 per cent to close at N30.00, N1.39 and N1.64 per share.
AIICO Insurance gained 4.44 per cent to close at N0.94 per share while United Bank for Africa added 4.38 per cent to close at N8.35 per share.
However, Union Bank emerged the day’s highest price loser with 4.95 per cent to close at N3.07 per share. Cement Company of Northern Nigeria followed with 4.94 per cent to close at N10.78 per share.
Diamond Bank lost 4.89 per cent to close at N5.64 per share while May& Baker shed 4.76 per cent to close at N2.61 per share.
Other losers of the days trading includes DN Meyer, Continental Reinsurance, C&I Leasing, shedding 4.74,4.55 and 4.48 percent to close at N2.61, N1.05 and N1.28 per share.
Consequently, the All-share index of the Exchange rose by 137.94 basis points or 0.5 per cent, from 24, 608.94 recorded on Monday to 24,746.88 while market capitalisation increased by N44 billion from N7, 862 trillion to N7, 906 trillion.
With transaction exchanged 268 deals, the conglomerates subsector was the most active stock in volume terms with 309.7 million shares worth N513.2 million in 268 deals. The banking subsector followed with 218.7million units worth N1.1 billion in 3,159 deals while the insurance subsector ranked third with 17 million units worth N12 million in 361deals.
The market on Friday dipped marginally by N4 billion to close the transaction in the day at N7.902 trillion while the All-Share Index also slipped by 13.5 basis to close the day at 24,733.38.