Market indices continue on a free fall journey

As against the trend experienced previous week, market indicators decline freely through this week by 9.65per cent as the NSE ASI index closed on the down side at 54,382.21 points. On the contrary, the total market capitalisation of the 222 listed equities slumped by 9.53per cent to stand at N10.60trn. The divergence in returns from index and capitalisation is attributable to the shares of Omatek Venture Plc admitted into the Daily Official List on June 18, 2008.

However, compared with previous week trading statistics, total volume of shares traded increased by 41per cent representing 5.24 billion shares exchanged by investors in 82,798 valued at N42.52bn.

Advances/Declines

CHEVRON (+14.62k), MOBILE (+9.37k) and 7UP (+2.60k) emerged leaders on the week’s gainers’ chart, while TOTAL (-N12.54k), GUINNESS (-N10.80k) and NESTLE (-N9.25k) led on the losers’ camp. It should be noted that GUINNESS was adjusted for final dividend of N6.80k on Friday June 20, 2008, which is responsible for the huge decline in its share price.

At close of activities, 14 stocks advanced in price lower than 92 recorded last week. 98 equities declined in value far higher than 2 noticed previous week while 12 closed flat.

Sectoral performance

For the fourth week running, Insurance sector sustained its dominance, emerging as the most active sector in the stock market by volume. The sector accounted for 3.43 per cent of total turnover of shares in 14,521 deals worth N6.45bn. Activity in the sector was driven trading in the shares of IAINSURE, UNIVINSURE and GOLDINSURE. Trading in the shares of the 3 companies captured 86per cent of the sector’s turnover. The banking sector trailed closely behind on the week’s activity chart with 1.3 billion shares exchanged in 38,977 deals valued at N28.99bn. Activities in the shares of companies in the Conglomerate sector claimed the third position on the table with 119 million shares traded in 2,225 deals.

CORPORATE NEWS: Corporate Results

CRUSADER INSURANCE PLC and NAMPAK NIGERIA PLC posted their audited accounts for the year ended December 31, 2007 and September 30, 2007 respectively. Similarly, SMART PLC and SCOA PLC both released their audited accounts for the year ended December 31, 2007 and un-audited Q2 results for the period ended June 30, 2007 respectively. Others in the group are:

- Ikeja Hotel Plc declared its audited accounts for the year ended December 31, 2007. The directors recommended cash dividend of N0.10k.

- DN Meyer Plc released its un-audited Q1 results for the period ended March 31, 2008 alongside with its audited accounts for the year ended December 31, 2007.

- INCAR (Nigeria) Plc posted its un-audited Q1 results for the period ended March 31, 2008.

- NCR (Nigeria) Plc made public its audited account for the year ended December 31, 2007 which shows turnover increase to N4.21bn from N1.6bn recorded previous year. Meanwhile, SMART PLC proposed a cash dividend of 7.5kobo per share with June 25 to July 08, 2008 as closure date. Payment date is to be announced later. Crusader Insurance Plc also declared a dividend of 15kobo per share. Closure date of register is between June 30 and July 04, 2008.

Longman Nigeria Plc goes on suspension

The share price of Longman Nigeria Plc froze on receipt of an official notice in respect of proposed placement of shares by the company.

New Listing by Introduction

- A total of 2,941,789,472 ordinary shares of 50kobo each were admitted into the Daily Official List of the NSE by introduction in the name of OMATEK VENTURES PLC at N4.18k.

- TANTALIZERS PLC: The NSE would be admitting 2,950,000,000 ordinary shares of 50k each at N3.50k by way of introduction on Monday June 23, 2008 in the name of Tantalizers Plc