News Column

All Share Index Down By 0.25 Per Cent on the Exchange

July 22, 2014

Bukky Olajide

THE Nigerian Stock Exchange[NSE] All Share Index[ASI] slipped 0.25 per cent to close at 42,784.30 points yesterday, depressed by the banking (0.49 per cent) and the insurance sector (1.37 per cent).

The oil and gas sector gained 0.25 per cent, followed by the industrial sector with 0.12 per cent. In reaction to its strong first quarter result, Wema bank advanced 9.01 per cent to lead the advancers' chart while Ncr (five per cent), Unilever (4.98 per cent) and Eterna (4.88 per cent) topped the losers' camp.

There was however, a significant pick-up in activity level given the 42.95 per cent and 36.41 per cent jump in volume and value of shares traded. The jump in transaction value was fuelled by Oando which accounted for 27.47 per cent of overall market trades.

Gauging by the negative market breadth index, sentiment was broadly weak yesterday.

Stocks on the move include Transcorp Plc, which posted strong half year results on the floor of the NSE yesterday. The conglomerate declared N21.212 billion for the first half of 2014 clearly doubling its first quarter revenue.

After-tax-profit rose by 177.37 per cent to N6.89 billion. Transcorp recently announced plans to invest about US$200 million in its power and hospitality business.

$90m was proposed for the upgrade of the generating capacity of its Transcorp Ughelli Power Limited to 715 megawatts from 463MW while about $110m will be used to expand its hotel network beyond the Federal Capital Territory and Calabar, Cross River State, to other state capitals. The stock however lost 3.55 per cent yesterday, after appreciating by 12.87 per cent month-to-date.

Meanwhile, at the OTC market, there was sustained intraday volatility as traders engaged in profit-taking early in the week in reaction to the midweek auction. In addition, the Open Market Operation[OMO] bills redemption and inflow of budgetary allocation (FAAC) towards the end of the week brought about system liquidity irrespective of the settlement of the bonds auctioned.

As a result, market activities remained active. However, analysts expect the market to remain at the current levels in the weeks ahead as more demand is expected to filter into the market on the back of the current liquidity status.

The major highlight of the market during the review week were: the release of June 2014 inflation figures (headline: 8.20 per cent) and the Federal Government of Nigeria primary market bond auction.

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Source: AllAfrica

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