Nigeria Stock market performs poorly in October

The total volume of shares traded
on the Nigerian Stock Exchange,
NSE, in the month of October
dipped by 53.84 per cent, the
News Agency of Nigeria reports.
Statistics obtained from the
Exchange in Lagos on Wednesday
showed that investors during the
period traded 3.67 billion shares
worth N32.02 billion transacted
in 55,397 deals.
The statistics was lower than 7.95
billion shares valued at N47.39
billion achieved in 65,193 deals
in September.
A further breakdown of the
statistics indicated that the
Financial Service Sector recorded
the highest volume of activities,
trading 2.59 billion shares worth
N12.26 billion transacted in
22,698 deals.
Premium Board Sector came
second with a total of 455.26
million shares valued at N4.53
billion achieved in 9,081 deals.
Conglomerates industry trailed
with 244.46 million shares worth
N434.95 million transacted in
2,326 deals, while Consumer
Goods Sector sold 147.59 million
shares valued at N7.62 billion in
9,735 deals.
NAN reports that the market
capitalisation during the review
period dropped by N384 billion or
3.95 per cent to close at N9.349
trillion, against N9.733 trillion
achieved in September.
Also, the NSE All-Share Index lost
1,115.31 points or 3.94 per cent to
close at 27,220.09 from 28,335.40
recorded in September due to
profit taking.
NAN reports that Forte Oil emerged as the
worst performing stock during the period
under review in percentage terms, dropping
by 27.67 per cent or N45.90 to close at N120
per share against the month opening price of
N165.90.
NAHCO trailed with a loss of 25.72 per cent or
0.89k to close at N2.57 per share against
N3.46 it closed for the month of September.
Ashaka Cement lost 24.65 per cent or N4.01 to
close at N12.26 against N16.27 achieved in
September, while Glaxosmithkline lost 23.88
per cent or N4.68 to close at N14.92 compared
with N19.60 in the preceeding period.
Conversely, Caverton emerged the best
performing stock in percentage terms,
appreciating by 44.74 per cent to close at
N1.10 per share compared with 76k it opened
for the month.
Total garnered 16.95 per cent to close at N345
against N295 per share it opened trading for
the month of September.
Okomu Oil increased by 13.29 per cent to
close at N43.05 compared with N38 in
September and Air Space rose by 10 per cent
to close at N2.20 against N2 achieved in the
previous month.
Some stakeholders attributed dismal
performance of the market to unimpressive
third results released by most quoted
companies due to challenging economic
environment.
Garba Kurfi, the Managing Director, APT
Securities and Funds Ltd., said that
disappointing third quarter earnings affected
the volume and value of shares during the
period.
Mr. Kurfi said that the results declared by the
companies were a true reflection of the
economy, noting that Nestle’s inability to
declare interim dividend is a reflection of the
market downturn.
He stated that the market would likely
maintain the negative trend in November
because of loss of confidence.
Ambrose Omordion, the Chief Operating
Officer, InvestData Ltd., described the month
of October as a disappointment despite its
being an earning season.
“The market performance for October was a
disappointment to many investors being an
earning season month expected to turn the
market around,” Omordion said.
He explained that the poor corporate
earnings, weak economic fundamentals and
lack of concrete economic plan to pull the
nation out of recession contributed to the
market lull.
Mr. Omordion said that these challenges had
led to fear and dwindling confidence of
investors in the market which affected
demand for equities.
He, however, expressed optimism that fund
managers and some investors were expected
to reposition their portfolios for year-end
activities on the strength of some positive
third quarter earnings.