Nigerian Stock Exchange, NSE, on Friday ended a two-day trading session as all-share index, ASI, and market capitalisation dipped 1.54 percent to close the week at 28,854.98 basis points and N9.910 trillion respectively.
“Similarly, all other Indices finished lower during the week, with the exception of the NSE ASeM Index that closed flat,” according to the NSE’s weekly stock market report for the period ended July 8, 2016.
This is coming on the heels of a three-day public holidays declared by the Federal Government to end of the Holy Month of Ramadan and Id-el-Fitr celebrations.
At the close of the week’s session, the Nigerian bourse recorded a turnover of 377.798 million shares worth N3.641 billion in 7,466 deals traded by investors on compared to a total of 1.469 billion shares valued at N17.065 billion that exchanged hands in the preceding week in 21,246 deals.
The report says the Financial Services Industry measured by volume led the activity chart with 305.334 million shares valued at N2.011 billion traded in 4,260 deals; thus contributing 80.82 percent and 55.23 percent to the total equity turnover volume and value respectively.
According to the NSE, the Oil & Gas index followed with 32.753 million shares worth N341.230 million in 1,029 deals. While the third position was occupied by the Consumer Goods Industry with a turnover of 16.258 million shares worth N635.951 million in 1,179 deals.
It affirmed that trading in the shares of financial HoldCo, FBN Holdings Plc, Nigeria’s top tier lenders, Guaranty Trust Bank Plc and Access Bank Plc measured by volume accounted for 122.347 million shares worth N1.291 billion in 1,477 deals, contributing 32.38 percent and 35.47 percent to the total equity turnover volume and value respectively.
In terms of Exchange Traded Products (ETPs), a total of 35 units of Exchange Traded Products (ETPs) valued at N374.00 executed in 7 deals were traded in the review week compared to a total of 12,695 units valued at N174,028.05 transacted in 35 deals.
On Bonds, a total of 13,767 units of Federal Government Bonds valued at N14.356 million were traded in 5 deals compared to a total of 2,979 units of Federal Government Bonds valued at N2.908 million transacted in the previous week also in 5 deals.
A summary of price changes in the review period shows that (9) equities gained in price during the week, lower than 22 reported the past week. On the flipside, 48 equities lost in price, lower than 52 recorded the previous week, while 123 equities remained unchanged higher than 106 posted in the preceding week.
Skye Bank’s shares also dropped further by 8.42 per cent following investors continued reaction to removal of the bank’s board and executive management.
The Central Bank of Nigeria (CBN) removed the board and management of the bank on Monday, and replaced them with another, a measure it said, was to redirect the bank.
The trading on Friday, the bank lost 8k to close at 87k per share.
The bank’s shares had depreciated by 9.5 per cent on Monday, forcing it to close at 95k per share.
A breakdown of the activity chart on the Exchange showed that investors sold 21.59 million shares of Skye Bank valued at N18.79 million.
Alhaji Rasheed Yussuf, immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), said that the shares of the bank were on offer but nobody was buying.
Yussuf urged the new management of the bank to map out strategies to assure and reassure shareholders and investors.
Further analysis of the losers’ table showed that Forte Oil lost N8.93 to close at N171.90 per share, while Beta Glass dipped N4.17 to close at N38.66 per share.
Lafarge Wapco shed N3.35 to close at N63.65 per share and GlaxosmithKline dropped N2.24 to close at N20.78 per share.
On the other hand, Stanbic IBTC gained N1.54 to close at N16.60 per share. Oando gained 68k to close at N8.05 per share, while Dangote Cement garnered 50k to close at N191.50 per share.
Guinness improved by 49k to close at N99.99 and Zenith International Bank gained 33k to close at N15.45 per share.
GT Bank recorded the highest volume of activities, exchanging 32.47 million shares worth N750.33 million.
FBN Holding came second with an exchange of 26.35 million shares valued at N100.52 million, while Oando sold 25.52 million shares worth N204.52 million.
Access Bank accounted for 23.17 million shares worth N132.02 million. In all, a total of 234.96 million shares valued at N2.29 billion were traded by investors in 4,145 deals.
This was in contrast with 142.84 million shares worth N1.35 billion exchanged in 3,321 deals on Monday.
NSE also classified Union Bank Nigeria Plc, Transcorp Hotels Plc and nine others out of the 180 companies quoted on the Nigerian Stock Exchange are operating below listing requirement (BLR).
According to the NSE, these companies have been pegged BLR for operating with deficiencies regarding Continuing Listing Standards.
NSE also reiterated that such deficiencies have the potential to adversely affect the capital market and shareholders who invested in those companies.
These companies with free float deficiencies are African Paints Plc, A.G. Leventis Plc, Capital Hotel Plc, Chellerams Plc, Caverton Offshore Support Group Plc, Great Nigerian Insurance Plc, Infinity Trust Mortgage Plc, Interlinked Technology Plc, Nigerian Ropes Plc, Transcorp Hotels Plc, Union Bank of Nigeria Plc.
Nigerian Ropes Plc with 13.96 percent in free float and compliance due date overdue (7th January 2015) has notified The Exchange of its intention to delist from the Daily Official, Capital Hotel Plc with free float of 2.23 percent and compliance due date of 20 April, 2016 and Interlinked Technology Plc with free float of 14.26 percent and compliance due date of 31 December 2015 have applied to The Exchange for extension of time, while Great Nigerian Insurance Plc with 16 percent of free float and Chellerams Plc with 14.87 percent of free float have two weeks (until8th July, 2016) to comply.
While the extent of the time given to these companies to comply to the NSE’s standard is at the discretion of the bourse, consequences of flouting the grace period is usually met with monetary sanctions and eventual delisting.
Caverton Offshore Support Group Plc which is operating with a deficient 17.40 percent in free float and Infinity Trust Mortgage Plc with deficient 1.13 percent in free float have until 31st December, and 31st October respectively to comply while A.G. Leventis Plc, Union Bank of Nigeria Plc, Transcorp Hotels Plc and African Paints Plc have until March, June and December 2017 as respective dates to comply with minimum requirement of free float.
The free float requirement for companies listed on the NSE main board is 20 percent, while for companies in the Alternative Securities Market (ASeM) is 15 percent.
The NSE had directed companies to provide quarterly disclosure reports to the Exchange detailing their level of implementation of the compliance plans reiterating that listed companies must maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities.
Free-float represents the portion of shares of a company that are in the hands of public investors as opposed to locked-in stock held by promoters, company officers, controlling-interest investors, or government. It helps to better calculate the market capitalisation of companies because it provides a more accurate reflection (than entire market capitalisation) of what public investors consider the company to be worth.

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