The stock recorded a decline of 2.3 per cent last week as the bears returned, depressing prices of bellwethers. After recovering from a three-week bearish run the previous week, market operators had expected that the positive trend would be sustained.
But the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell to 2.3 per cent to 29,270.95, while market capitalisation shed N303.7 billion to close at N12.902 trillion. The year-to-date decline of market has thus worsened to 6.9 per cent. Apart from the ASI that fell, activity level also declined as average volume and value traded declined by 42.1 per cent and 64.7 per cent to 298.4 million shares and N1.8 billion respectively as buying interest continued to wane.
Trading had started on Monday with a 1.2 per cent on the back of losses in Guaranty Trust Bank Plc, Dangote Cement Plc and Nigerian Breweries Plc. The negative trend persisted for the remaining four days with the NSE ASI depreciating by 0.7 per cent, 0.1 per cent, 0.3 per cent and 0.1 per cent respectively. In terms of sectoral performance, the NSE Banking Index led the laggards with 5.4 per cent, followed by the NSE Consumer Goods Index. The NSE Industrial Goods Index went down 2.3 per cent. The NSE Oil & Gas Index shed 0.7 per cent, just as the NSE Insurance Index declined 1.0 per cent.
Investors’ appetite for stocks was dampened last week as the NSE announced the suspension of trading the shares of 11 companies for failing to file their accounts as required by the listing rules of the exchange. The NSE had explained that the affected companies were suspended pursuant to Rule 3.1, Rules for filing of accounts and treatment of default filing, which provides that “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a “second filing deficiency notification” within two business days after the end of the cure period; Suspend trading in the Issuer’s securities; and (c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.”
Based on the above, the NSE suspended trading in the shares of 11 companies. They are: FTN Cocoa Processors Plc, Goldlink Insurance Plc, Guinea Insurance Plc; Conoil Plc; Lasaco Assurance Plc; Niger Insurance Plc; R.T.Briscoe (Nigeria) Plc; Resort Savings & Loans Plc; Royal Exchange Plc; Standard Alliance Insurance Plc and Universal Insurance Plc. The exchange had explained that the suspension of the companies would only be lifted upon the submission of the relevant accounts and provided the exchange is satisfied that the accounts comply with all its applicable rules.