Trading

NSE increases equities in two sectoral indices

By BABAJIDE KOMOLAFE & CHINEDU IBEABUCHI

The Nigeria Stock Exchange on Friday increased the number of equities in two of its sectorial indices, namely NSE Consumer Goods Index and the NSE Oil and Gas Index.

Meanwhile Value of equities on the Nigerian Stock Exchange, NSE, dropped by N91 billion last week, as a result of losses recorded in the price of highly capitalised equities, led by Nigeria Breweries Plc and Nestle Nigeria Plc.

The increase in the number of equities in the two of the NSE indices was the outcome of the  a review of the indices review by the Index Committee of the Exchange.

*Stock exchange floor

*Stock exchange floor

In a statement signed by Wole Tokede, Head, Media Relations of the Exchange, this will be effective from January 2.

He said, “As a prelude to the year-end review of The NSE 30 Index and other Sectorial Indices, the Index Committee of The Nigerian Stock Exchange has undertaken a pseudo-review of the indices and released the names of the likely incoming and exiting equities. Barring unforeseen circumstances, the composition of the indices will become effective on Wednesday January 2, 2013.

“The pseudo review of NSE 30 and Sectorial indices which is done twice yearly in June and December is a run-up to the actual review to be undertaken at respective month ends.

“The Committee has recommended that the number of stocks comprising the NSE Consumer Goods Index be increased from 10 to 15; NSE Insurance Index be increased from 10 to 15 while the NSE Oil/Gas Index will have  7 stocks as against the current 5.

“The NSE 30 Index and the NSE Banking Index retain their 30 stocks and 10 stocks respectively. As the Committee explained, this is to allow for adequate portfolio diversification.

“The breakdown of the likely composition of the indices shows that the NSE 30 Index may have GlaxoSmithkline ConsumerPlc; Union Bank of Nigeria Plc; International Breweries Plc; Julius Berger Nigeria Plc; 7-UP Bottling Co. Plc and Sterling Bank Plc as likely incoming stocks while Law Union & Rock Ins. Plc; Transnational Corporation of Nig. Plc; National Salt Co. of Nig. Plc; OandoPlc; Dangote Flour Mills Plc and Mobil Oil Nigeria Plc are listed as likely exiting stocks.

“Under the NSE Consumer Goods Index, the following stocks are listed as likely incoming:  International Breweries Plc; National salt; Honeywell Flour Mills Plc; VitafoamPlc; UTC Plc; Multi-Trex Integrated Foods Plc and Northern Nig. Flour Mills Plc while 7-Up Bottling Plc; Cadbury Nigeria Plc; Dangote Flour Mills; Unilever Nigeria; PZ Cussons Nigeria Plc; Dangote Sugar Refinery Plc and Flour Mills of Nigeria Plc are listed as likely exiting.

“The NSE Banking Index has Union Bank; Diamond Bank; Sterling Bank Plc; Unity Bank Plc and

Wema Bank Plc as likely incoming while FBNH; Stanbic Holdco; Fidelity Bank Plc; First City Monument Bank Plc and Skye BankPlc are listed as likely exiting.

“Niger Insurance Plc; Cornerstone Insurance Plc; Standard Alliance Ins. Plc; Lasaco Assurance Plc; Sovereign Trust Insurance Plc; Linkage Assurance Plc and Prestige Assurance Plc are in the stocks listed as likely incoming stocks for The Insurance Index while Unity Kapital Assurance Plc; Mutual Benefits Assurance Plc.; Goldlink Insurance Plc; Aiico Insurance Plc; Wapic Insurance Plc; Continental Reinsurance Plc and Mutual Benefits Assurance Plc are listed as likely exiting stocks.

“The NSE Oil/Gas Index has MRS Oil Nigeria Plc; Japaul Oil & Maritime Services Plc; EternaPlc; Beco Petroleum Products Plc listed as likely incoming stocks while Forte OilPlc; ConoilPlc; Mobil Nigeria and OandoPlc are listed as likely exiting stocks.”

A review of trading on the NSE last week shows that, total value of equities listed on the Exchange also known as Market Capitalisation depreciated by 1.03 per cent to close at N8.755 trillion from N8.846 trillion. Similarly, the NSE All-Share Index dropped by 1.02 per cent to close at 27,402.06 points from 27,685.54 points.

A review of the movement of prices of equities indicated that forty equities recorded price appreciation while thirty five equities suffered price decrease, with prices of one hundred and twenty equities remaining constant. When compared with the preceding week, forty four equities recorded price appreciation while twenty-five equities recorded price declines, prices of one hundred and twenty-nine equities remaining constant.

The drop in market capitalisation was led by Nigeria Breweries Plc, which depreciated by N20.70 to close at N144.30 from N165.00 per share. It was followed by Nestle Nigeria Plc, which lost N9.94 to close at N700.06 per share,  while Guinness Nigeria Plc also lost N 4.00 to close at N261 per share.

On the other hand,  Okomu Oil Palm Plc topped  the gainers’ chart, appreciating by N3.00 to close at  N38.00 from N35.00 per share. It was followed by Guaranty Trust Bank Plc, which rose    by N1.85 to close at N23.35 per share while International Breweries Plc also gained N1.70 to close at N15.90 per share.

Meanwhile, a turnover of 1.293 billion shares valued at N13.725 billion in 20,499 deals was recorded last week in contrast to a total of 1.929 billion shares valued at N14.640 billion that exchanged hands in 22,650 deals penultimate week.

The Financial Services sector (measured by turnover volume) accounted for 952.745 million shares valued at N7.857 billion traded in 11,975 deals. Consumer Goods sector (measured by turnover volume) followed in the activity chart with for 81.616 million shares valued at N4.377 billion traded in 4,295 deals.

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