June 10, 2012 / The Analyst / Proshare Research

Follow-up to news analysis titled: 55 Stocks Trading at N0.50 Kobo Today: What Next? 

The NSE All-Share Index opened the year 2008 at 58, 579.77 basis point. It recorded -52.06% losses to close the year at 28,085.01 basis points. In the same period of review, NSE Market CAP lost N3.33 trillion after opening 2008 at N10.28 trillion and closed at N6.95 trillion. The market witnessed reduced losses in 2009 as it recorded -33.58% losses. The Index opened the year at 31,357.24 basis points and closed at 20, 827.17 basis points while market CAP also lost N1.95 trillion representing -28.14% loss at the end of the year.
 

However in 2010, the market bounced back to record +18.87% gains while market CAP recorded +58.52% gains. It closed 2011 with -17.42% loss while market YTD performance stands at +6.95% as at 30^th May, 2012.

As at the end of 2008 Nigerian Stock Market review, 16 stocks traded at 50k while 2009 YoY Change reflects Tropical Petroleum as the only stocks to have recorded a positive price movement with +4.76% gain witnessed. Anino International Plc recorded -4.55% losses as depicted by their 2010 YoY. The 16 stocks eventually closed flat in subsequent years.

Twenty-four (24) stocks traded at 50Kobo as at the end of 2009 with three stocks recording negative price movement after 2010 YoY change while Goldlink Insurance and Transcorp Plc are the only two stocks to record price movement in subsequent years and traded above its nominal value.

Year 2010 has a record of forty-five (45) firms that traded at 50k. Goldlink Insurance Plc and Transcorp Plc which featured in the 2009 review also continued with similar outlook. No stock recorded negative price movement as they all closed flat. Also, Wapic Insurance Plc closed above its nominal value at 0.61 Kobo gaining 4.00%.

The number of stocks that traded at 50k increased from forty-five (45) in 2010 to fifty-two (52) in 2011 and all the fifty-two (52) stocks closed unchanged as no price movement was recorded within the period of review.

 

A cursory look into quoted companies listed on the Nigerian bourse between 2008 and 2011 will indicate that 301 firms were on the Exchange in 2008, 21 firms were listed in the year while 29 firms were delisted. This number reduced to 266 with 14 new companies listed while 64 firms delisted in 2009. By 2010 the number was further reduced to 264 with the three (3) firms coming in as newly listed firms while a firm was delisted. The 2011 data shows 199 quoted are on the bourse with 20 companies delisted while one firm was listed on the bourse in the year 2011.

Signs of Hope? – List of Recovered Stocks

Click HERE to read up on the Individual Analysis of the 55 Penny Stocks as at May 25, 2012

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