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The bulls fought back to regain control of the stock market yesterday recouping N28 billion in market capitalisation. after losing to the bears for two days.
The market had opened for 2010 with the bulls having a strong hold for seven consecutive days. But attempts by some investors to reap capital gains pushed the market into the bearsÂ’ territory last Wednesday.
However, the market closed on a positive note yesterday as the bulls returned - making 34 stocks to close higher, while 29 stocks closed with lower prices. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index closed higher at 22,060.36, up from 21,944.94, while the capitalisation appreciated to N5.285 trillion from N5.257 trillion the previous day.
Benue Cement Company Plc led the price gainers with N2.00 per share to close at N50 per share. Guaranty Trust Bank Plc trailed with a gain of N0.71 to close at N16.79, while Dangote Sugar Refinery Plc and Cadbury Nigeria Plc chalked up N0.57 and N0.43 in that order.
Other top price gainers included: Academy Press Plc (N0.32); Unilever Nigeria Plc, Union Bank of Nigeria Plc (N0.30 each); Eterna Oil (N0.28); Skye Bank Plc, Cement Company of Northern Nigeria Plc; National Salt Company of Nigeria Plc (N0.27 each); May & Baker Nigeria Plc (N0.24) and Diamond Bank Plc (N0.19).
Conversely, Flour Mills Nigeria Plc led the price losers with N1.01 to close at N37.80 per share. Glaxosmithkline Consumer Nigeria Plc (N0.52); Ecobank Transnational Incorporated (N0.45);Lafarge WAPCO Cement Plc (N0.26); Nigerian Aviation Handling Company Plc (N0.23); Costain (WA) Plc and Zenith Bank Plc (N0.20 each); Custodian and Allied Insurance Plc, Afribank Nigeria Plc and Redstar Express Plc (N0.13) among others.
Although the bulls returned yesterday, there is apprehension among operators that the volatility will continue for some time.
The Managing Director/Chief Executive Officer of Afrinvest West Africa Limited, Mr. Ike Chioke, had said the upward trend witnessed in the first week of January 2010, should not be seen as the total return of the bulls to the market.
He said until the issue of margin loans overhang in the market is addressed, volatility will continue because any little appreciation in shares would be interrupted by the investors who would sell to reduce their indebtedness to the banks.
Meanwhile, investors traded 352.817 million shares worth N2.236 billion in 6,881 deals compared with 456.361 million shares valued at N2.735 billion in 7, 042 deals the previous day.
The banking sub-sector recorded 242.587 million shares worth N1.681 billion in 3,938 deals to lead the activity table. |
