Business
Investors’ Exit Crashes All-Share Index
As the festive period takes its toll on the market indicators, Investors exist their positions to celebrate with their families and loved ones.
This impacted negatively on the all-share index of the Nigerian Stock Exchange as the market lost all it gained in the previous week to close at 21,217.77, dropping 1.93 percent from an opening point of 21,635.36.
The market capitalisation of the listed equities equally dropped from an opening figure of N5.13 trillion. The presence of some speculators in the market was connected to the fall in the market indicators for the three trading days, coupled with price shed by high captalised equities.
At the end of the three days of trading, a total turnover of 1.34 billion equities valued at N7 billion were transacted in 17,121 deals.
This action was highly driven by shares traded in the banking and insurance sub-sector of the exchange.
The banking sector was the most active with 847.54 million shares worth N4.25 billion that exchanged hands in 9,460 transactions.
This volume recorded in the banking industry was boosted by trades in the shares of Fin bank, and First Bank Plc. This trading in the two banks accounted for 447.62 million shares, representing 52.81 percent of the sub sector’s turnover. The Insurance sub sector was largely driven by activity in the shares. Of Cornerstone Insurance and AllCO to follow on the weekly chart with a volume of 159.45 million shares valued at N134.91 million done in 1,418 trades.
The number of equities that featured on the losers’ chart for the period under review was more than the number on the gainers’ table.
Most of the Stock on the gainers’ chart are those that posted positive earnings in their recent reports.
During the week, Resort savings and loans, a mortgage company was listed on the exchange by way of introduction at a price of N1.25, while Holdlink Insurance was placed on technical suspension for share reconstruction.
Investors at this point of the year should have a rethink and focus on facts and figures when making investment decisions in anticipation of good full-year results and possibility of dividend.
Earnings tell investors what has happened in the past and what may likely happen in the future. Details of earnings made available to the market during the week are analysed and stated at the back page.