Stock market review for week ended February 16, 2007.
February 20th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
The stock market last week was quite impressive as the bulls regained control after about a three day run by the bulls the week before. This was evident as the blue chip companies were able to rally prices towards the end of the week. Also, the all share index increased by 5.32 percent, from 39,168.94 points to 41,254.25 points last week. Market capitalization also moved northward, from N5.3 trillion to N5.6 trillion.
Word has it that the bullish trend was somehow triggered by the influx of pension fund administrators into the market. Also, the stock exchange announced a slash in tariff from 0.65 percent to 0.50 percent for transactions in the exchange last week.
A turnover of 2.42 billion shares valued at N28.2 billion were exchanged in 49,825 deals last week. This is in contrast to a total of 2.20 billion shares worth N31.4billion exchanged in 47,719 deals the previous week.
UPCOMING PUBLIC ISSUES
The trio of Oceanic International Bank Plc, UBA and Diamond Bank Plc have all been placed on technical suspension, as they seel to raise fresh funds from the capital market.
Oceanic Bank intends to raise N56 billion fresh funds, broken down as 3.358 billion ordinary shares of 50 kobo each at N15.60 per share. The company is most likely seeking to boost its share capital to N100 billion.
Diamond Bank on the other hand intends issuing 2.281 billio9n ordinary shares of 50 kobo each at N7.50 per share. This comes to about N18 billion that the company intends to raise. UBA is however not left out, as they are soon to come out with a public offer. Most investors are indeed waiting for such, as the bank is currently regarded as the fastest growing bank in Nigeria.
The market this year is expected to play host to some companies that are seeking to raise fresh funds. We’ll keep you posted on recent developments as they unfold.
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