Stock market indices plunge

At the close of trading activities at the Nigerian Stock Exchange (NSE), last week, the market capitalisation of 198 First-Tier equities closed lower atN5.14 trillion against the N5.34 trillion recorded in the preceding week, while the NSE All Share Index dropped by 3.75 per cent to close at 21,804.69 basis points.

Also, the NSE-30 index dropped by 3.02 per cent to close at 837.34. Only one of the four NSE sectoral indices appreciated - the food/beverages rose by 2.02 per cent to close at 484.99 while the banking, insurance, and oil and gas declined by 4.23 per cent, 2.90 per cent, and 2.02 per cent respectively.

Low turnover

A total of 1.95 billion units of shares worth N11.4 billion were exchanged in 30,579 deals in the week as against 2.102 billion units of shares worth N15.780 billion in 29,101 deals recorded last week.

The banking subsector recorded the highest traded volume for the week with a total of 902.73 million shares valued at N6.8 billion compared with the 1.305 billion units worth N10.419 billion in the preceding week. Volume in the banking sector was largely driven by activities in the shares of First City Monument Bank, United Bank for Africa and Access Bank Plc. Trading in these three banks accounted for 41.9 per cent of the subsector's turnover.

Similarly, the activity in the insurance subsector was buoyed with the shares of Lasaco Insurance Plc and Standard Alliance Insurance Plc, with a turnover of 493.42 million units valued at N390 million.

Price movement

A total of 16 stocks appreciated in price during the week, lower than the 42 stocks recorded in the previous week. Flourmills Nigeria Plc again led the gainers' chart with N6.79, while Guinness Nigeria Plc, Julius Berger, and UAC Plc followed with a gain of N4.14, N1.34, and 50 kobo, respectively.

On the losers' side, 72 stocks declined higher than the 55 stocks recorded last week. The Nigerian Breweries Plc led the chart with N4.50 drop, while Conoil Plc, UAC Nigeria Plc, and African Petroleum Plc followed with a loss of N3.98, N2.08, andN1.80, respectively.

Price adjustment

During the week, the Exchange adjusted Custodian and Allied Insurance Plc for an interim dividend of 5k per share as directed by the company's board of directors, while it also adjusted Nigerian Ropes Plc for dividend of 8k per share, and Adswitch Plc for dividend of 4k per share.

Meanwhile, the NSE, on Thursday, downgraded the full suspension imposed on Stokvis Nigeria Plc and African Paints Nigeria Plc to technical suspension.

Bond market

At the counter bond market, a turnover of 408.8 million units worth N502.043 billion in 4,667 deals was recorded, in contrast to a total of 482.04 million units valued at N588.776 billion exchanged in 5,681 deals the previous week.

As in the preceding week, the most active bond, in terms of volume, was the sixth Federal Government of Nigeria (FGN) Bond 2029 Series 3, with a traded volume of 77.6 million units valued at N107.457 billion. This was followed by the fifth FGN Bond 2013 Series 1, with a traded volume of 46.94 million units valued atN50.844 billion.

Only 19 of the available 37 FGN Bonds were traded during the week, compared to the 21 recorded in the preceding week.