Monday, 24 June 2013

NSE loses N926billion in 2 weeks •Reviews composition of stock market indices

The Nigerian Stock Market recorded a loss of N926billion for the second week running as the market capitalisation of the listed equities on the main board continued its bearish performance.
The market capitalisation of the listed shares fell by 7.33 per cent or N926billion from N12.641trillion in June 7, to close at N11.715 trillion last week Friday.

Also, the NSE All-Share Index (ALSI) went down by 7.84 per cent or 3,100.40 basis points from 39,564.79 to 36,464.39 points.

Information gathered from the NSE revealed that a turnover of 1.631 billion shares worth of N21.680 billion in 30,952 deals were traded last week by investors on the floor of The Exchange in contrast to a total of 3.725 billion shares valued at N75.874 billion that exchanged hands in 39,060 deals the previous week.
The Financial Services sector led the activity chart with a turnover of 1.103 billion shares valued at N10.552 billion traded in 16,479 deals.

The sector represented 67.67 per cent, 48.67 per cent and 53.24 per cent of the total traded volume, value and deals respectively.

The Conglomerates sector followed with a turnover volume of 141.198 million shares worth N412.127 million in 1,046 deals contributing 8.66 per cent, 1.90 per cent and 3.38 per cent of the total equity turnover volume, value and deals respectively.

The Consumer Goods sector came third with a turnover volume of 141.018 million shares worth N8.071 billion in 6,365 deals.

Trading in the top three equities namely: Zenith Bank Plc, Sterling Bank Plc and Transnational Corporation of Nigeria Plc accounted for 419.396 million shares worth N3.542 billion in 3,173 deals, contributing 25.72 per cent, 16.34 per cent and 10.25 per cent to the total equity turnover volume, value and deals respectively.

Also traded during the week were 80 units of NewGold Exchange Traded Funds (ETFs) valued at N165,960 executed in 3 deals compared with a total of 197 units valued at N421,356 transacted in 4 deals in the previous week.

In addition, 2,740 units of FGN bonds valued at N303, 805 were traded during the week in 22 deals in contrast to 1,770 units valued at N194, 830 transacted the previous week in 15 deals.

During the week, all the NSE indices depreciated except one: NSE Consumer Goods (2.21 per cent), NSE Banking (0.97 per cent), NSE Oil/Gas (0.96 per cent), NSE-Lotus II (1.59 per cent), NSE Industrial Goods (1.60 per cent) and NSE-ASeM (1.27 per cent).

However, NSE Insurance rose by 0.54 per cent to close at 144.23. Only 32 equities appreciated in prices during the week compared with 34 equities in the preceding week.

49 equities depreciated in prices as against 52 equities in the preceding week, while 112 equities remained constant, higher than 107 equities of the preceding week.

... Reviews composition of stock market indices
The Nigerian Stock Exchange (NSE) is putting final touches to the bi-annual review for the NSE 30, NSE 50 and the five sectoral indices of The Exchange. The sectoral indices are; the NSE Banking, the NSE Consumer Goods, the NSE Oil & Gas, the NSE Industrial and the NSE Insurance.

A statement from the Exchange revealed that the composition of the indices after the review, which will witness the entry of some major companies and exit of others, would take effect from July 1, 2013.

The Index Committee of The Exchange explained that The NSE-30, NSE-50 and NSE Industrial Indices were modified market capitalisation index with the numbers of included stocks fixed at 30, 50 and 10, respectively. The numbers of included stocks in the NSE-Consumer Goods, Banking, Insurance and Oil/Gas Indices are 15, 10, 15 and 7 respectively.

The Exchange said the Stocks would be picked on the basis of their market capitalisation from the most liquid sectors. The liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included, the stock must be traded for at least 70 per cent of the number of times the market opened for business.

The committee further stated that the Exchange was not oblivious of the fact that the number of the stocks that would be included in some of the indices may be inappropriate for optimal portfolio diversification.

Source: Nigerian Tribune

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