Stock Market Performance in 2005
Capital Market
The last 12 months have been the most eventful in the 45-year history of the Nigerian stock market. This was largely driven by the banking sector consolidation and the drop in interest rate.
|
Statistical Summary of Market Performance in 2005 |
|
Market Mirrors |
2004 |
2005. |
% Change |
|
Closing Market Capitalization (N’T) |
2.112 |
2.90 |
37.3 |
|
Closing All share index |
23,844.45 |
24,085.76 |
1.01 |
|
Market Turnover for the Year (N’B) |
225.82 |
262.9 |
24.52 |
|
Average Daily Volume (million) |
75.03 |
107.6 |
43.40 |
|
Average Daily Turnover (billion) |
0.882 |
1.06 |
20.18 |
|
No of Listed Securities |
276 |
288 |
4.35 |
|
No of Listed Companies |
207 |
214 |
3.38 |
During the year, 12 new securities were listed while 6 stocks were delisted in the Nigerian stock market bringing the number of listed stocks to 288.
· The total market turnover in 2005 was N262.9 billion representing an increase of 16.52 per cent over the 2004 market turnover.
· Transactions in equities accounted for 96.9 per cent, Federal Government Development Stocks accounted for 3.6 per cent while State Government Bonds and Industrial Loan/Preference Stocks accounted for 0.5 per cent of the market turnover in 2005.
· Average daily activity rose from 75 million shares worth N882 million in 2004 to 107 million shares valued at N1.1 billion in 2005.
· The turnover ratio improved marginally, ending at 12.42 per cent in 2005 from 12.38 per cent in 2004.
Market Capitalisation
· The total market capitalization rose by 37.3 per cent to end the year at N2.90 Trillion.
· The listing of new securities (equities and bonds) explains in large part the growth of the market capitalization during the year.
· The following 10 companies emerged with the highest market capitalization during the period under review:
|
10 Companies with the Highest Market Capitalisation in 2005 |
|
Company |
Market Capitalisation (N’B) |
|
Nigerian Breweries Plc |
293.42 |
|
First Bank of Nigeria Plc |
160.1 |
|
Union Bank of Nigeria Plc |
152.01 |
|
Guinness Nigeria Plc |
113.27 |
|
Intercontinental Bank Plc |
99.2 |
|
Zenith Bank Plc |
99.0 |
|
Nestle Nigeria Plc |
98.8 |
|
UBA Plc |
90.7 |
|
Nigerian Bottling Co. Plc |
84.92 |
|
Guaranty Trust Bank Plc |
74.4 |
The ALL-Share Index
· The Nigerian Stock Exchange yearly average All-Share index rose by 1.01per cent in 2005 and closed at 24,085.76.
· On October 10, the index attained its 2005 highest value of 26,221.
Market Deals
· Total market deals for the year rose marginally by 2.76 per cent over the 2004 deals which close at 16,941 deals.
· Until July 15, the number of deals in 2005 was relatively lower than the 2004 monthly deals- reflecting tight liquidity and crowding out of secondary market through primary market Issues by Banks.
Most Active Sectors in 2005 (by market turnover)
|
Sectors |
Market Turnover (N’B) |
% of Market Total |
|
Banking |
200.91 |
77.2 |
|
Petroleum (marketing) |
16.92 |
6.5 |
|
Insurance |
8.59 |
3.3 |
|
Conglomerates |
7.81 |
3.0 |
|
Breweries |
7.03 |
2.7 |
|
Healthcare |
6.25 |
2.4 |
|
Building materials |
4.68 |
1.8 |
|
Food/Beverages & Tobacco |
2.60 |
1.0 |
|
Industrial/Domestic Products |
1.30 |
0.5 |
|
Maritime |
1.04 |
0.4 |
|
Total |
260.25 |
100 |
· The Banking subsector was the most active in 2005 with 77.2 per cent shares of the market turnover. Volume in the Banking subsector was largely driven by the consolidation exercise in the industry throughout the year.
· During the year, over N200 billion was raised by banks from the capital market in their bid to beef up their capital base.
Most Active Stocks in 2005 (by turnover volume)
|
Stocks |
Turnover Volume (Billion of Shares) |
|
Oceanic Bank International |
2.342 |
|
UBA Plc |
1.600 |
|
IMB International Bank |
1.471 |
|
Access Bank Plc |
1.316 |
|
Afribank Nigeria Plc |
1.223 |
|
Intercontinental Bank Plc |
1.182 |
|
Cadbury Nigeria Plc |
65.6 |
|
Total Nigeria Plc |
62.14 |
|
Unilever Nigeria Plc |
62.14 |
|
Oceanic Bank International Plc |
62.08 |
· Banks accounted for 7 out of the first 10 most active stocks measured by volume in 2005.
2005 Market Rating by Price Movement (20 Best Gainers and 20 Worst Losers)
|
|
OPENING |
CLOSING |
% CHANGE |
Rank |
|
COMPANY |
31/12/2004 |
31/12/2005 |
|
|
|
ADSWITCH |
0.45 |
1.06 |
135.56 |
1 |
|
CRUSADER |
0.70 |
1.50 |
114.29 |
2 |
|
CAPPA & DALBERTO |
7.25 |
15.35 |
111.72 |
3 |
|
CUTIX |
1.58 |
3.20 |
102.53 |
4 |
|
BAICO |
0.85 |
1.60 |
88.24 |
5 |
|
COOP BANK |
1.13 |
1.92 |
69.91 |
6 |
|
INLAND BANK |
1.07 |
1.81 |
69.16 |
7 |
|
BCC |
4.10 |
6.50 |
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