Financial stocks remain investors’ favourite

The stock market opened on a low note on Monday as the volume of shares traded and other market indicators closed lower compared with Friday’s figures.

Investors had invested N9.26bn on 603.94million shares in 10,917 deals on Friday while the Nigerian Stock Exchange All-Share Index and market capitalisation dipped by 0.5 per cent.

When the market opened for business on Monday, investors traded only 511.86million shares worth N7.08bn in 10,289 deals.

The Index dipped further by another 0.03 per cent from 51,084.75 to close at 51,068.40 just as the market capitalisation fell from N7.854tn on Friday to close at N7.852tn on Monday.

A stockbroker had on Friday, attributed the bearish trend to portfolio review by some investors and profit taking by others.

“Some are selling to reap capital appreciation while others are selling stocks on which they had recorded growth to invest in some offers to open in the primary market soon,” he said.

Mobil Oil Nigeria Plc led the price losers for the day with N4.96 to close at N165.19 per share. Conoil Plc and Nigerian Bottling Company Plc followed with N3.14 and N2.60 to close at N60.86 and N49.40, respectively.

On the other hand, Flour Mills Nigeria Plc led the gainers with N3.75 to close at N78.75. Guinness Nigeria Plc chalked up N1.50, while Benue Cement Company Plc and R.T. Briscoe Nigeria Plc garnered N1.49 and N1.39 in that order.

However, he banking and insurance sub-sectors remained investors’ favourites. The banking sub-sector led with 292.65million shares valued at N4.64bn, while insurance stocks sold 111.68million shares worth N455.59million.

Fidelity Bank Plc led the banking sub-sector with 138.71m valued at N1.45bn traded in 629 deals. The stock had been very active in the past weeks.

The Corporate Affairs Manager of the bank, Mr. Emmanuel Esinna, attributed the high patronage to the improved financial performance of the bank.

According to him, the bank had recorded over 200 per cent rise in its third quarter results while investors were expecting better results for the full year ending June 30, 2007.

Wema Bank Plc sold 26.23million shares worth N289.81m in 652 deals, while IBTC Chartered Bank Plc traded 13.58million shares valued at N149.34m in 69 deals.
Courtesy African capital market daily news.