Posted Thursday, October 2, 2008
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The Nigerian equities market ended today’s trading session on a pessimistic note as major market indicators strode southward. The ratio of decliners to advancers increased to 8:1, as against the 5 day average of 6.4:1 witnessed over the past five-day trading sessions; whilst the ASI declined by 55 basis points to close at 45,959.9, compared to the 5-day average of 46,815.64. Market capitalization decreased by US$0.46billion to close at US$83.9 billion. In addition, values of transactions declined by 31.04% and closed at $13.99 million.



The price of Avon Crown Cap was today marked down for a dividend of N0.15kobo by the Nigerian Stock Exchange.



C&I Leasing today released its un-audited results for the half year ended 31st July, 2008. Turnover jumped by 173.39% to N2.8 billion, PBT also increased by 47.12% to N306 million, while PAT increased by 51.98% to N269 million, from N177 million in the corresponding period of 2007. 7Up Bottling Company released its audited results for the year ended 31st March, 2008. Turnover grew by 11.95% to N30.572 billion, PBT and PAT increased by 26.53% and 31.91% to N2.48 billion and N1.608 billion respectively. In addition, the company’s management proposed a dividend of N1.50 kobo with closure date of October 20, 2008 and payment date of December 10, 2008. In spite of the earnings and corporate action, the stock failed to enjoy investors’ patronage, causing the stock to shed maximum 1% at the end of trading session.



Activities in the market continued on a losing spree as investors remain un-attracted by the declining share prices. This suggests the presence of liquidity squeeze in the market, loss of investors’ confidence, and investor’s preference for less risky investment. In our opinion, we anticipate that the market down turn will bottom out as we approach the 44,000 index level where we witnessed some level of support prior to the introduction of the initial palliative initiatives by the regulators and stakeholders. In view of this, we expect the steady decline to continue until further initiatives are implemented.



Index was down by 55 basis pts on 5,888 trades. Average size of trade was US$5,757 with total value of US$33.9m. Market cap closed at US$83.9 billion.



Overall, there were 7 gainers and 59 losers and 56 unchanged. The Insurance sector led the volume chart followed by the Banking sector and both accounted for 84.24% of total volume traded.



Investment and Allied Insurance Plc traded 236.92 million shares to top the overall volume chart. Other stocks that closed in the top echelon were Spring Bank, Chams, Fidelity bank and Guinea Insurance.



* Net Bid: Spring Bank and Chams.

* Net Offer: Investment and Allied Insurance, Lasaco, Transcorp, Afribank and Equtiy Assurance.

* Top Gainers: Chams, Adswitch, Daar Communications, Big Treat and Neimeth.

* Top Losers: Oceanic, NB, Starcomms, First Inland and Nahco.

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