MARKET BRIEF:
Aggregate turnover of 466.15 million shares was recorded in the market today in 9,875 deals valued at N7.06 billion higher than 405 million shares worth N4.592billion transacted yesterday in 8,937 deals.
Moreover, the
Total market return for the day was 0.94% as The NSE
All -Share Index closed higher 39,350.33 points while
Total market
Value of listed equities jerked up by 1.01% to close at N5.323 trillion.
SECTORAL PERFORMANCE:
The banking sub-sector emerged leader with over 77% of the market turnover/share worth about 74% of the aggregate
Value of
Securities traded in the market today. The
Insurance sub-sector ranked second with ~8% of the
Total market
share (by turnover) valued at ~1.2% of the cumulative market
Value while Conglomerates sub-sector came third with ~6% of the market
share (by volume traded) of
Securities traded today.
CORPORATE RESULTS:
IBTC-CHARTERED
Bank PLC &
Guinness Nigeria PLC released their quarterly results to floor of The
Exchange . (See our attached Market Update for detailed results).
STOCK SPLIT:
ECOBANK
Transnational Inc .
Bank PLC (ETI) at its EGM passed the resolution for
Stock split with effect from today.
MARKET MOVERS:
The top ten (10) trades (by volume of traded on the
Exchange ) in the market today were
Access , AP,
Cornerstone ,
Diamond ,
Fidelity ,
First Inland ,
Oceanic , PLATINUM,
Transcorp &
Unic Insurance . They
All accounted for about 73% of the
Total volume traded worth approximately 69% of the market
Value .
PRICE MOVEMENTS:
WAPCO led the gainers’ camp today (measured in absolute term) with a
Capital appreciation of N3.80k to close at N79.92k while
CHEVRON lost N5.00k, closing at N159.00k to emerge leader on the losers’ table. (See our attached Market Update for a comprehensive
Price list).
TERM OF THE DAY:
STOCK SPLIT vs. REVERSE SPLIT:
STOCK SPLIT:
This refers to a type of
Corporate action where a
Company \'s existing shares
Are divided into multiple shares. Although the amount of shares outstanding increases by a specific multiple, the
Total dollar
Value of the shares remains the same compared to pre-split amounts, because no
Real Value has been added as a result of the split.
One reason as to why
Stock splits
Are performed is that a
Company \'s
share Price has grown so high that to many
Investors the shares
Are too expensive to buy in round lots.
For example, if a XYZ
Corp \'s shares were worth N1, 000 each,
Investors would need to purchase N100, 000 in order to own 100 shares. Whereas, if each
share was worth N10 each,
Investors only need to pay N1, 000 to own 100 shares.
REVERSE SPLIT:
It refers to a reduction in the number of a
Company \'s shares outstanding that increases the par
Value of its
Stock or its earnings per
share . The market
Value of the
Total number of shares (market capitalization) remains the same. For example, a 1-for-2 reverse split means you get half as many shares, but at twice the
Price.
It is usually a bad sign if a
Company is forced to reverse split. Firms do it to make their
Stock look more valuable when, in fact, nothing has changed. A
Company may also do a reverse split to avoid being delisted.
MARKET UPDATE: REFERRALS
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Thank you for taking time
Out to
Read our market update. Should you wish that your friends, acquaintances and
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Please click below for the FULL MARKET UPDATE.
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Attachment : MARKET UPDATE FEBRUARY 13 , 2007.xls
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MERISTEM
Securities Ltd .
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Williams Street,
South
West, Ikoyi,
Lagos .
P.O Box 51585
Falomo, Ikoyi,
Lagos .
Phone:234-1-2717350-5; Fax: 234-1-2717356, 2690118.
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