A cumulative total of 4.22 billion shares worth N70.78bn were traded in 77.374 deals far above previous week‘s trading statistics of 3.03 billion shares valued at N58.60bn traded in 40,613 deals.

The total market return for the week declined by 1.22 as The NSE All-Share Index closed lower at 58,130.74 points. On the other hand, total market capitalisation of the 211 listed equities appreciated by 2.37 per cent to stand at N10.58tn.

Listing of new shares:

A total of 10,576,362,588 ordinary shares of Oceanic Bank Plc were listed during the week following the conclusion of the bank‘s public offer and supplementary allotment. This pushed the bank‘s total issued shares to 25 billion. Likewise, a sum of 173,334864 shares were added to the shares of Cement Company of Northern Nigeria Plc following the conclusion of the company‘s Right Issue while an aggregate of 637,726,000 shares were added to the shares of AIICO Insurance Plc on the conclusion of merger with NFI Insurance Plc and LAMANDA Insurance Company Limited. Similarly, 4,498,205,285 shares were added to the shares of Cornerstone Insurance Plc following the placing of shares with capital alliance private equity ii limited.

Equity delisting:

nfi Insurance Plc was delisted following the completion of merger arrangement with AIICO Insurance Plc. This brings the number of listed equities to 211.

Technical suspension:

The price of Fidelity Bank Plc was during the week lifted off technical suspension at N11.83k following the conclusion of its recent public offer. Similarly, trading resumed in shares of International Energy Insurance Plc (following the expiration of the trading suspension) at a price of N5.79k following the conclusion of its share reconstruction exercise in the ratio 3 for 1. By this action the shares outstanding of the company shrank to 5.5 billion.

Price adjustment:

The share prices of Oceanic Plc, UBA Plc and NAMPAK Plc were adjusted for dividend payments.

Corporate results:

Access Bank Plc, Afribank Plc, Bank phb Plc, Oceanic Bank Plc, Skyebank Plc, UBA Plc, Zenith Bank Plc, Evans Medical Plc, Pharma-deko Plc and University Press Plc released their results to the Exchange during the trading week.

SECTORIAL PERFORMANCE:

The banking sector continues its lead in the market this week, accounting for over 44 per cent of the total volume of equities traded worth over 71 per cent of the aggregate value of securities traded in the market this week. Activity in the sector was driven by high volumes traded in the shares of Intercontinental, FCMB and Unity Bank which represented 50 per cent of the total turnover of the sector. The insurance sector trailed closely behind with 42 per cent of the total market turnover (volume) valued at about 9.4 per cent of the cumulative market value while the conglomerates sector came third with approximately 2.4 per cent of the total market turnover (volume) for the week.

TERM OF THE WEEK:

Clientele Effect

This theory that a company‘s stock price will move according to the demands and goals of investors in reaction to a tax, dividend or other policy change affecting the company. The clientele effect assumes that investors are attracted to different company policies, and that when a company‘s policy changes, investors will adjust their stock holdings accordingly. As a result of this adjustment, the stock price will move.

Consider a company that currently pays a high dividend and has attracted clientele whose investment goal is to obtain stock with a high dividend payout. If the company decides to decrease its dividend, these investors will sell their stock and move to another company that pays a higher dividend. As a result, the company‘s share price will decline.