Here is the stock market report for the week ended January 9th, 2009:

Stocks Trade Low, but Market Closed High Friday

Equities trading on the floor of the Nigerian stock Exchange from Monday through Thursday experienced no significant spike nor gathered any upbeat momentum. Index plummeted daily with a mean loss of 2.20 percent save Friday which witnessed a little rally as some stocks like FIRSTBANK, DANGSUGAR, DIAMONDBNK, ACCESS, SOVREGNINS and GUARANTY went on bid tossing the NSE ASI upwards by 0.61 percent to halt at 28,866.80 points for the week. Accordingly, the index shed 7.94 percent compared with previous week’s close of 31,357.24 points while total market capitalisation (TMC) of the 213 listed equities stood at N6.386 trillion (USD$49.12billion) after sliding off 7.94 percent.

Volume traded for the week dwindled backed with fear and loss of confidence from investors, who remain undecided as to the direction of the market and therefore seem to hold back from large transactions as indicators glide downwards.

In deep contrast to previous 4-day week end, trading statistics during the week under review was up by 5.4 percent (volume of shares), 43.7 percent (number of deals), and 12.9 percent (value of transactions). In summary, 1.05 billion shares were swapped in 34,103 trades valued at N7.3 billion as against 992 million shares exchanged in 23,733 deals valued N6.4bn.

News

1.       On conclusion of trading, the banking sector emerged most active sector for the week measured in volume of shares transacted. The sector accounted for 52 percent of the 492.6 million shares swapped in a total of 18, 265 deals valued at N4.7 billion. The sector movers were FIDELITYBK, GUARANTY, OCEANIC, and FIRSTBANK as activities in the shares of these banks accounted for 50 percent of the sector’s turnover. Trailing up next, investors exchanged stakes in 251.2 million insurance shares valued at N393.1 million and Telecommunications sector staked-up third with 111.9 million shares transacted in 912 trades worth N287.4 million.

2.       Demand side; Supply side: A long week of continuous pressure on the supply side of stocks trading with no appreciable demand to absorb the quantum of offer ended with a considerable number of equities on the bid chart. SPRINGBANK, FIRSTINLANDBNK, GAURANTY, DIAMONDBNK and FIRSTBANK had a place on the bid table. Well populated is the offer flip with ETI, IAINSURE, STACO, EQUITYASURE, and MTI with over 20 million units on offer each. 

3.       Although there was no business results for the week, we present attached a list of companies that made public their performance results for the previous week ended. INTERCONTINENTAL BANK PLC and CRUSADER NIGERIA PLC released their operations results. 

4.       Furthermore, the share price of NIGERIAN BREWERIES PLC was marked down for its interim dividend of N1.90k per share on Monday, December 29, 2008 while the Board of SKYE BANK PLC announced a change in its previous closure date of January 01, 2009 to January 12, 2009 and payment date still remains January 30, 2009.

5.       Gainers and Losers: The bears held activity sway for the week as the number of advancing stocks in gainers’ territory on a daily basis slipped off into the losers’ camp. By end of trading session on Friday, only 9 stocks out of 55 in the gainers’ camp last week was left while the bears’ camp was largely flooded with 77 equities which is 44 percent higher than 34 stocks recorded previous week end. 11 stocks remained unchanged.

6.       OANDO (+N4.17k, N82.18k), PZ (+N2.05k, N13.85k) and CCNN (+N1.50k, N7.09k) led the gainers’ camp (absolute price change) while CHEVRON (-N15.41k, N144.50k), GUINNESS (-N15.11k, N82.90k) and TOTAL (-N10.18k, N198.51k) top the price losers’ camp.