Okomu leads gainers as stock market dips

 After yesterday trading on the floor of the Nigerian Stock Exchange (NSE), price appreciation witnessed in the shares of Okomu Oil Palm plc positioned it as the biggest gainer.

As equities market declined, Okomu led other stocks with a gain of N8.77kobo after its share price rose from N87.72kobo to N96.49kobo at the close of trading on the bourse.

Other stocks that rallied are Presco which rose from N22.50 to N24.75, after adding N2.25. Dangote Cement plc gained N0.95 after its share price rose from N155.05 to N156; while Julius Berger share price appreciated from N51 to N51.80, adding N0.80.

As investors resorted to cautious trading which affected stocks pricing, earnings releases was unable to buoy Nigeria equities.

The stock market performance indicators –NSE All Share Index and market capitalisation closed southwards. All Share Index dropped to 34,339.64 points from 34,548.72 while market cap declined from preceding day’s level of N11.057trillion to N10.990trillion. This dismal performance was recorded even as investors exchanged 418,604,967 shares worth N4.256billion in 6,888 deals

Leading the league of securities that impacted negatively on the bourse’s performance was NewGold Exchange Traded Fund (ETF) after its price declined from N2, 418 to N2, 369, losing N49. Also, Nigerian Breweries contributed after its share price dipped from N169 to N159.01, shedding N9.99. Guinness Nigeria plc declined from N266 to N265, losing N1; while UAC-Properties plc dipped from N16.85 to N16.02, losing N0.83.

Trading in the shares of Mansard Insurance, FCMB, Sterling Bank, Wema Bank, and Zenith Bank helped to bolster the volume of stocks traded yesterday on the Nigerian Stock Exchange.

In another development, the Nigerian Stock Exchange has indicated that it will be launching an Alternative Securities Market (ASeM) this month for Emerging Companies with high potential for growth in Nigeria.

ASeM will be a specialised board on the Nigerian bourse where small to mid-sized companies can access the capital market under less stringent rules and requirements to raise long term, low cost capital.

Haruna Jalo-Waziri, executive director, Business Development, NSE said “The Nigerian Stock Exchange is a staunch believer in the critical role of emerging enterprises in a developing economy and as such we have taken the bold move of providing a platform for sustainable growth and development of these companies.”

He said: “The ASeM Board will allow issuers, especially indigenous companies the opportunity to inject relatively low cost and long term capital into their businesses through flexible rules that recognise their growth potential rather than the size of operation.”

Taba Peterside, general manager, listings sales and retention, NSE said “Designated Advisers will be required for all companies listed on the ASeM Board of The Exchange to ensure compliance with all the requirements and obligations of the Alternative Securities Market. The Designated Advisers will provide professional resources to qualifying companies for guidance and advice on securities-related matters”.

The Exchange has already completed the selection process for the Designated Advisers and is at the verge of announcing the successful applicants in a few days ahead of the official launch of the ASeM Board slated for later this month. 

IHEANYI NWACHUKWU