Investors transact 34.94bn shares worth N148.85bn in Q1

Investors on the Nigerian Stock Exchange (NSE) exchanged 34.94 billion shares valued N148.85 billion in 202,650 deals in the first quarter of 2016, NSE’s statistics showed on Wednesday.

The News Agency of Nigeria (NAN) reports that the level of transaction during the period represented 90.20 per cent increase from 18.37 billion shares worth N172.60 billion traded in 175,426 deals in the last quarter of 2015.

The All-Share Index during the period dropped 3,336.03 points or 11.65 per cent to close at 25,306.22 against 28,642.25 it opened with at the beginning of the year.

The market capitalisation shed N1.15 trillion or 11.68 per cent to close the quarter at N8.70 trillion from N9.85 trillion at which it opened for the year.

An analysis of the price movement chart during the period showed that Tiger Brand emerged as the best performing stock in percentage terms.

It appreciated by 105.31 per cent to close at N2.32 against the opening price of N1.13.

Seplat came second with an increase of 47.78 per cent to close at N300 per share compared with N203 it opened for the quarter.

Conversely, Deap Capital was the worst performing stock in the quarter, dropping by 68.05 per cent to close at 54k in contrast to the N1.69 it opened for the year.

It was trailed by Diamond Bank, which depreciated by 50 per cent to close at N1.15 as against its opening price of N2.50.

Commenting on the market, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Consulting Ltd., Lagos, attributed the development to challenges in the foreign exchange, declining external reserve and low purchasing power of Nigerians.

Omordion said that activities would likely slow down in the second quarter because major quoted companies had released their 2015 audited results.

He said that expected quarterly results would not have much strength on the market due to prevailing economic situation.

According to him, the current budget will not make any impact immediately until the end of third quarter.

He added that the recent hike in interest rate, the Cash Reserve Requirement (CRR) by the apex bank would naturally make money market instrument slightly attractive due to zero risk.

Omordion said that there would be movement of funds from the capital market into the money market as a result of the increment.