Economy

Capital market indices dip by 0.02% on NSE

NSE: Market indices extend growth by 0.35%
Written by Maritime First

…As Expert says Successful listing of Airtel on NSE will deepen market***

The long bearish trend on the Nigerian Stock Exchange (NSE) seems to be moderating, as the crucial market indicators dropped marginally, only by 0.02 per cent on Thursday, with the All Share Index dropping 7.41 points or 0.02 per cent, to close at 29,765.31 compared with 29,772.72 recorded on Wednesday.

Similarly, the market capitalization, which opened at N13.120 trillion shed N3 billion or 0.02 per cent, closing at N13.117 trillion against N13.120 trillion on Wednesday.

The negative performance was influenced by price depreciations in medium and large capitalised stocks, among which are Forte Oil, MTN Nigeria, CI Leasing, Stanbic IBTC Holdings and Zenith Bank.

Analysts at Afrinvest Limited said that they expected investors to cautiously take positions in fundamentally sound stocks, which were trading at attractive prices and offering high dividend yields as H1 earnings season approached.

Lafarge Africa topped the gainers’ chart by 9.95 per cent to close at N10.50 per share.

Linkage Assurance followed with a growth of 8.93 per cent to close at 61k, while Thomas Wyatt Nigeria rose by 8.82 per cent to close at 37k per share.

AXA Mansard Insurance grew by 8.38 per cent to close at N1.94, while NEM Insurance gained 8.16 per cent to close at N2.65 per share.

Conversely, C&I Leasing led the losers’ chart by 10 per cent to close at N5.67 per share.

Forte Oil followed by declining 9.96 per cent to close at N31.20, while Wapic Insurance dipped by 8.89 per cent to close at 41k per share.

Courteville Business Solutions went down by 8.70 per cent to close at 21k, while Neimeth International Pharmaceuticals depreciated by 7.14 per cent to close at 52k per share.

However, the volume and value of shares traded closed lower as investors bought and sold 275.49 million shares worth N3.91 billion in 3,977 deals.

This is against the 1.23 billion shares valued at N67.89 billion shares exchanged in 3,441 deals on Wednesday.

Sterling Bank dominated trading activities, accounting for 54.96 million shares valued at N131.91 million.

Lafarge Africa came second with 32.44 million shares worth N340.63 million, while Access Bank traded 26.93 million shares valued at N185.11 million.

Guaranty Trust Bank sold 25.84 million shares worth N801.3 million, while Zenith Bank accounted for 19.87 million shares valued at N398.9 million.

Meanwhile, the an economist, Mr Godwin Anono, has said that the successful listing of Airtel Communication on the Nigerian Stock Exchange (NSE) would deepen the capital market and boost the nation’s economy.

Anono, who is the President, Standard Shareholders Association of Nigeria, made this observation in Lagos on Thursday, saying the gesture was commendable.

“The action is commendable as it will encourage other big corporate to be listed in the market and expand within little or no time.

“The decision will enable Nigerians to have shares in the company, thereby giving them sense of ownership in the corporation,’’ the economist said.

Anono said that the successful listing of air telecommunication was imperative, saying it would further deepen the market and spur growth in the economy.

“The gain behind the listing of the telecommunication firms is unbelievable.

“With the completion of such investment decision, the firm will be able to raise funds within limited time for it expansion,’’ he said.

Anono said that the idea behind the proposed listing was good for the economy, noting that the gesture would encourage other firms to venture into the Nigeria’s capital market.

The Airtel Nigeria has officially filed an application with the Securities and Exchange Commission (SEC) for the listing of its shares on the NSE.

It was gathered from top sources at the commission on Tuesday that the telecom company’s application was filed two weeks ago, and was already receiving SEC’s quality attention.

The source said that the application would be given express consideration if the company met all the requirements for listing on the nation’s bourse.

The parent company of the telcom firm, Bharti Airtel, in its filing on London on Monday, said that it intended to list the shares on the NSE at the same time with the listing of its Africa unit at the London Stock Exchange.

 

 

 

 

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Maritime First