Nigerian Stock Exchange ASI experiences worst January since 08/09 crash – Rewane

[Photo: businessnews.com.ng]

Nestle topped the losers chart after Monday’s trading on the Nigerian Stock Exchange.

Nigeria’s Stock Exchange All share Index, an index designed to reflect the movement of the equity market, has had its worst January outing since the 2008/2009 stock market crash, Bismarck Rewane, a finance analyst and Managing Director, Financial Derivatives Company, a diversified financial institution, has said. 

“Equity markets had their worst January since the 08/09 Crash. The NSE ASI decreased (1.8 per cent) on the month compared with an average January return of 8 per cent since the crash,” he said.

According to him, the stock exchange is facing the ‘Perfect Storm’. Factors that trigger this storm include the Central Bank of Nigeria’s increase of banks Cash Reserve Ratio on public deposits to 75 per cent, from 50 per cent, the United States Federal initiatives tapering of its stimulus program, now down to $65bn from $85bn of monthly purchases.

“This ends an era of easy money,” he said. “The NSE ASI’s sensitivity is largely driven by highly capitalized stocks.”

Highlighting the case and point of the most capitalized NSE Stock, he said NSE ASI increased 47 per cent in 2013 and Dangote Cement (DangCem) accounted for an estimated 80 per cent of this return.

“DangCem accounts for 28.14 per cent of the index but only has an estimated 5 per cent of its stock in free-float. Perhaps the NSE ASI needs to be reviewed to a free-float capitalization mechanism. This should better reflect activity on the bourse,” Mr. Rewane said.

He said markets may not be as bullish in 2014, as emerging markets are already down 6.6 per cent in January. 

Meanwhile, Nestle topped the losers chart after Monday’s trading on the Nigerian Stock Exchange with a N5.00 share price loss. The firm’s share price closed at N1, 135.00 down from N1, 140.00. The firm was followed by Oando, which lost N1.02, closing at N20.81 down from N21.83 before transactions. Nigerian Breweries lost N0.50 and closed at N153.50 down from N154.00. Guaranty Trust Bank also lost N0.43 and closed at N27.05, down from N27.48 while Zenith Bank’s share price closed at N21.80 down from N22.23, losing N0.43, after the day’s trading session.

Julius Berger topped the gainers chart, gaining N3.05 at the close of the day’s transactions as its share price rose from N71.00 to N74.05. It was followed by Presco, which gained N2.19 closing at N46.18, up from N43.99.

Betaglas was third on the top five gainers chart, recording a N0.97 share price gain, as it closed at N20.44, up from N19.47. Uniondicon came fourth, recording a share price gain of N0.30 and closed at N2.45 from N12.15. Dangote Sugar also gained N0.25 and closed at N11.89 from N11.64 before trading.

The value of transactions after trading stood at 5.230 billion, recorded in 4, 591 deals. The volume of transactions stood at 445.4 million after the day’s transactions. The Exchange’s market capitalisation also stood at 13.02 trillion while the Exchange’s All Share Index (ASI) stood at 40, 647.80 after the day’s trading.

NEM led the most traded shares chart, trading a volume of 165.2 million shares valued at N130.3 million. Zenith Bank also made the chart, trading 34.681 million shares valued at N756.2 million. FBNH came third, trading 29.3 million shares valued at N125.6 million. Transcorp traded 29.319 million shares valued at N125.6 million while Law union traded 20.05 million shares valued at N10.02 million.

Top 5 gainers

COMPANY LAST CLOSE CURRENT CHANGE
JBERGER 17.00 74.05 3.05
PRESCO 43.99 46.18 2.19
BETAGLAS 19.47 20.44 0.97
UNIONDICON 12.15 12.45 0.30
DANGSUGAR 11.64 11.89 0.25

Top five losers

COMPANY LAST CLOSE CURRENT CHANGE
NESTLE 1140.00 1135.00 -5.00
OANDO 21.83 20.81 -1.02
NB 154.00 153.50 -0.50
GUARANTY 27.48 27.05 -0.43
ZENITHBANK 22.23 21.80 -0.43

Market Statistics (Snapshot)

Market Statistics (Snapshot)  
ASI 40,647.80
DEALS 4, 591
VOLUME 445.4 (million)
VALUE 5. 23   (billion)
CAP 13. 02 (trillion)

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