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To ensure price stability and forestal arbitrary movement of equities prices, the Nigerian Stock Exchange last Friday issued a new set of rules expected to check unwholesome practice of price manupulations.

According to the new rules, a newly listed company must trade up to 10 per cent of the total listed stocks on the listing day. Besides a new company would have to wait for one year after listing before it qualifies to float an initial public offer.

Again, a minimum of 100,000 units of shares must be traded before an equity can record a price rally or loss as the case may be.

Announcing the new regime of regulations, the Assistant Director-General, NSE, Mr. Lance Elakama told financial journalists that the move was to stem the arbitrary price movement on the floor of trading and by so doing, protect investors from undue infringement.
He said “some companies’ shares are not available for investor to buy in the market and are neither active nor in 17,589 deals valued at N11.007 billion as against 613.926 million traded in 17,215 deals last Friday valued at N11.790 billion.”

Consequently, the All-share index dropped to 60,122.77 points from 60,339.68 points recorded on Friday just as the market capitalization shed marginal weight falling to N11.623 trillion from N11.676 trillion.

Investors’ confidence appear to be increasingly on the banking sector as it witnessed highest trading volume of 259.691 million followed by insurance sub-sector which recorded 178.563 million volumes.
In the banking sub-sector, Afribank, UBA, Skye Bank, were the volume drivers, as well as Oceanic Bank, Fidelity and First Inland Banks. Similarly, Universal Insurance Company which traded 94.806 million shares followed by corner-shares were volume drivers.

Other sub-sectors which witnessed fairly high activities were Airline Services driven by heavy trading in the equities of Nigerian Aviation Handling Company that traded over 23.967 million shares, mortgage companies which traded 34.936 million shares with newly listed Aso Savings and Loans trading 29.408 million units.

Price rally was at its lowest ebb as the bears went down under the crushing weight of prevailing market lull. Only 33 equities moved north ward with Mobil Oil on the top by N14.99 and ETI trailing behind with N11.90 followed by UACN which gained 260 kobo closing strongly at N314.97, N249.90 and N54.62 each.

Closing at N132.48, N27.04, and N18.69, Guinness, G. Cappa and Diamond Bank experienced prices gain with 248 kobo, 128 kobo and 89 kobo respectively.
Other price gainers on the top 10 were cement company of Nothern Nigeria, A.G. Leventis, and UCA Properties which appreciated marginally by 80 kobo, 74 kobo and 70 kobo each closing at N16.80, N16.55 and N22.70 each (and one leasing also chalked up 68 kobo to make the top 10 gainers closing at N14.34.

On the down side of the chart, Oando, WAPCO and Costain led 63 others losing 987 kobo, 315, and 261 kobo each to close at N222.13, N59.85, and N49.64 respectively.
7Up, Ashaka Cement and Benue Cement also went down by 255 kobo, 229 kobo and 227 kobo each to close at N48.50, N43.70, and N43.23.

Four other price losers on the top 10 were Flour Mill, CAP, PZ and R.T. Briscoe which lost 198 kobo, 188 kobo, 145 kobo and 137 kobo each to close the day at N86.02, N45.50, N28.10 and N26.13 in that order.