The Nigerian Stock Exchange (NSE) last week recorded a turnover of 2.5 billion shares worth N17.04 billion transacted in 28,638 deals. This is against the 1.89 billion shares valued at N15. 54 billion traded in 28,619 deals the previous week. In the period under review, the market capitalisation, however, dropped by N374 billion or 3.09 per cent to close at N11.764 trillion, from the N12.138 trillion recorded in the preceding week.
Besides, the All-Share Index lost 1182.64 basis points or 3.09 per cent to close at 37,145.65, from the 38,328.29 achieved in the previous week. In the period under review, Transnationwide Express lost 67k, to close at N1.32 per share. ABC Transport trailed by 26k to close at N1.03, while IHS depreciated by 74k, to close at N3.05 per share. On the other hand, Forte Oil led the gainers’ table by N14.06, to close at N43.82 per share.
MRS Oil Nigeria followed by N10.86, to close at N36.14 while Conoil Plc appreciated by N8.37 to close at N33.69 per share. 215.03 million units of FGN bonds valued at N230.07 billion were also traded in 1,519 deals. This is in contrast to the 126.82 million units worth N146.01 billion, transacted in 1,054 deals in the preceding week.
Mr Olaleye Williams, the Managing Director, GlobalView Consult & Investments Ltd., Lagos, attributed the decline in the market capitalisation to profit-taking by speculative investors. Williams said that the CBN’s review of the Cash Reserves Requirement for all government deposits with commercial banks from 12 per cent to 50 per cent also brought pressure on the NSE. He said that the upward review created panic selling in the equities market, with fears that the policy would have a negative impact on banks’ profitability. He said that public sector deposits under the new policy must be kept with the CBN and not to be lend to the public. Williams added that the market volatility might continue unless there was quick intervention by market makers.