The market capitalisation of the Nigerian Stock Exchange (NSE) dropped by N265 billion last week due to unimpressive financial results of some companies in 2012.
The News Agency of Nigeria (NAN) reports that the market capitalisation closed lower at N10.71 trillion on Friday from the N10.99 trillion posted in the preceding week.
Similarly, the NSE All-Share Index declined by 787.23 points last week to close at 33,514.14 against the 34,301.37 achieved in the previous week.
A.G Leventis recorded the highest price loss last week, shedding 33.54 per cent or 54k to close at N1.07 per share.
It was trailed by Neimeth which dropped 25k to close at 73k per share, while ABC Transport went down by 17k to close at 88k per share.
On the other hand, Wapic Insurance led the price gainers' table, appreciating by 29k to close at N1.26 per share.
IPWA followed with a gain of 13k to close at 76k per share, while Mansard Insurance rose by 28k to close at N2.58 per share.
A total of 2.19 billion shares worth N24.94 billion were traded in 33,100 deals last week against the 1.60 billion shares valued at N19.09 billion exchanged in 26,264 deals in the preceding week.
The Financial Services was the most traded sector last week, accounting for 1.59 billion shares valued at N15.01 billion exchanged in 20,976 deals.
The ICT sector followed on the activity chart with167.32 million shares worth N357.17 million traded in 47 deals.
Mr David Adonri, the Chief Executive Officer, Lambeth Trust & Investment Company Ltd., said that the inability of some companies to propose dividends elicited the negative reaction.
Adonri said that some macroeconomic issues which posed threat to the revenue base of the country contributed to the development.
Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that non declaration of dividends by some companies in spite of good result created panic and “sell pressure” in the market.
Kurfi said that fear of uncertainty among investors took toll on other banking stocks last week.
Mr Boniface Okezie, President, Progressive Shareholders Association of Nigeria (PSAN), however, advised investors not to harp on dividends.
Okezie said that quoted companies needed to consolidate their growth to ensure sustenance of dividend payment, explaining that investments in the capital market were long-term investments all over the world. (NAN).