10 high priced stocks con­trol 53.8% of eq­ui­ties

Daily Trust - - BUSINESS - From Kay­ode Ogun­wale, La­gos

Ten out of 199 eq­ui­ties listed on the Nige­rian Stock Ex­change (NSE), clas­si­fied as high priced stocks due to their high share price, con­trol 53.8 per cent of the mar­ket trans­ac­tion, Ac­cord­ing to Daily Trust in­ves­ti­ga­tion.

These high priced stocks are se­cu­ri­ties that have traded an aver­age of N100 or more per share in four out of the last six months pe­riod.

The stocks are La­farge Ce­ment WAPCO Nigeria Plc which joined the league of ten high priced stocks last week, Dan­gote Ce­ment Plc which is the most cap­i­tal­ized stock, Guin­ness Nigeria Plc, Nes­tle Nigeria Plc, Nige­rian Brew­eries Plc, SIM Cap­i­tal Fund, Skye Shel­ter Fund, Nige­rian En­ergy Sec­tor Fund (NESF) and To­tal Plc.

Anal­y­sis by Daily Trust re­vealed that the ten stocks con­trol most of the mar­ket trans­ac­tion which on many oc­ca­sions de­ter­mined the trend of the mar­ket.

Head, Mar­ket Op­er­a­tions of the NSE, Mr. Ade Ewu­osho, said that to move the price of any stock up­wards or down­wards, the bro­kers needed to have a vol­ume of 50,000 shares and above.

How­ever, in Septem­ber 2012, the ex­change in­tro­duced a pi­lot pro­gramme for its new mar­ket struc­ture with the roll­out of mar­ket mak­ing, where stock­bro­kers could move prices of some high priced stocks with 10,000 shares.

Re­act­ing to the in­ci­dent at the end of last week trad­ing, a stock­bro­ker said a sit­u­a­tion whereby less than ten stocks con­trolled al­most 200 stocks listed on the bourse, re­gard­less of their per­for­mance, was not good enough.

He said the gen­eral out­look of the mar­ket im­proved when com­pared with the pre­vi­ous week, de­spite the bear­ish recorded dur­ing the week

“Drop in high price stock, such as Dan­gote Ce­ment, Nes­tle Nigeria and Se­plat dragged mar­ket down, when few stocks de­ter­mine the fate of the en­tire mar­ket that is the kind of re­sult you will see”.

He said, how­ever, that “there is hope in the mar­ket go­ing for­ward be­cause bank­ing stocks are go­ing up now”.

Bank­ing sec­tor con­trols the mar­ket, he said, adding that the ap­a­thy in this sec­tor dur­ing the first quar­ter of the year put the en­tire mar­ket down.

CEO, Nige­rian Stock Ex­change, Mr. Oss­car Onyema

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