The new pricing methodology of the Nigerian Stock Exchange (NSE) commenced finally on Monday, with eight listed stocks that had remained perpetually on the old floor falling lower and closing at 48 kobo per share in what may have started as a journey to the new par value of 1 kobo per unit.
Beyond falling below the only floor, market analysts have noted the fact that many of these stocks which had witnessed zero trading activities were traded upon.
It was also noted that beside transporter- Associated Bus Company Plc which also closed at 48 kobo on, most of the others in the 50 kobo category were insurance firms. By Tuesday morning, ABC opened at 46 kobo and was on offer at 44 kobo, a price it traded 33,100 units in four deals.
African Alliance Insurance Company and outdoor advertising giant- Afromedia, Chams, Cornerstone Insurance and Courteville Business Solutions were on offer at 48 kobo, but closed at 50 kobo, due to the lack of a bid.
Also in the category and have a strong propensity to migrate towards the one kobo floor are: electronic media giant- Daar Communications, which was on offer at 48 kobo, but closed at the old par value; Deap Capital Management & Trust, DN Tyre and Rubber; Equity Assurance; as well as FTN Cocoa Processors, which closed at 50 kobo, after only 6,500 units were matched, but was on offer at 48 kobo at the close of trading.
Guinea Insurance also closed on offer, after 100,000 units were crossed for the day at 50 kobo; just as Consolidated Hallmark Insurance had no bid, remaining on its last traded price, but remained on offer at 48 kobo; just like International Energy; Japaul Oil & Maritime Services.
John Holt closed on offer at 50 kobo, even after its 14,513 units changed hands in four deals.
Prestige Assurance, which opened Tuesday at 48 kobo was on bid at 46 kobo in the late morning trade, a price it sold 98,690 units in six deals, before going on offer at 48 kobo.
The case was similar for Royal Exchange Plc, which opened at 46 kobo and fell to 44 kobo, a price investors traded its 200,000 units in three deals, even as it closed on offer, with no bid at the time of reporting; which was better than vehicle and sundries distributor- RT Briscoe that was on offer at 48 kobo with no accompanying bid.
At the time of reporting, the Nigerian Stock Exchange’s composite All-Share index was down 268.66 basis points to 0.61% at 44,037.82, from the 44,306.48 opening level and after touching a high of 44,400.58 and low of 43,998.27 points, with 330.921m shares traded in 1,937 deals for N1.727bn.
The biggest decliner at the time was Royal Exchange, with 8.33%, while Cutix and Julius Berger lost 5% each; while Diamond Bank garnered 4.93%.