260710: Redstar, Zenith, Contisure drive upbeat as NSE ASI gains 1.02%.
Category: Daily & Weekly Market Updates
Equity market bullish outlook that resurfaced at the close of trading session on Tuesday 20th July, 2010 entered five trading days in a row at the close of trading session as buy forces continue to dominate the sphere of the market.
In the five trading days, the NSE All-Share Index has recorded aggregate appreciation of 3.04% while market capitalisation which measures the financial worth of all the quoted stocks on the bourse inched up in the five trading days by N185.842 billion.
The positive performance recorded so far cut across all the sectors on the bourse, but could be attributed mainly to good performances recorded in the banking and some other blue chips stocks.
However, as market outlook remains positive, trend in some of the sectors showed indications of profit taking by investors as sell pressures seem to be gaining momentum. This may be sending signals that profit taking activities may be more prominent in the coming days.
This may eventually confirm our view in our last Wednesday’s market report that as market continues to post different growth rates, there would be in between sell pressures as investors take profit. (http://www.proshareng.com/news/singleNews.php?id=11461)
Transactions volume on the Nigerian Stock Exchange declined. In the same vein, market value dipped below the figures recorded at the close of trading session on Friday.
Meanwhile, inter-bank rates have dropped further to 1.15% on average from 1.41 % penultimate week. The drop has been attributed to the full impact of over N270 billion monthly budgetary disbursals to government agencies that hit the monetary system.
The secured Open Buy Back (OBB) was flat at 1.10%, 10 basis points above the Standing Deposit Facility rate and 4.90% points below the central bank’s benchmark rate. The overnight rate was also stable at 1.15%, while the call rate eased to 1.20% from 2.0% penultimate week.
All these are indications of relative liquidity ease into the system. All things being equal, as more liquidity flows into the system, the impact should reflect in all the segments of the economy, equity market inclusive.
As usual, banking sector led the market transaction volume today with 255.402 million units valued at N2.182 billion (US$14.576 million) exchanged in 3,611 deals. Transactions in the shares of United Bank of Africa, Zenith Bank Plc, Platinum Bank Plc and First Bank Nigeria Plc boosted the volume traded in the sector. The total volume of 136.138 million units valued at N1.370 billion traded in the shares of the four banks accounted for 53.30% of the entire sector volume and their value represented 62.79% of the sector’s value.
The number of gainers at the close of trading session closed at thirty five (35) compared with forty (40) gainers recorded on Friday, while decliners closed at twenty nine (29) compared with twenty two (22) losers recorded in the last trading day. Market closed with 1.21:1 advancers to decliners’ ratio.
At the close of trading session, the All-Share Index inched up by +1.02% to close at 25,527.44 compared with appreciation by +0.85% recorded on Friday to close at 25,269.36. Market capitalisation also appreciated by N63.117 billion (US$421.622 million) to close at N6.243 trillion (US$41.704 billion) compared with appreciation by N52.162 billion (US$348.441 million) recorded at the close of trading on Friday to close at N6.179 trillion (US$41.282 billion)
Transactions in the Agriculture sector at the close of trading session ended with one gainer to a loser compared with two losers to a gainer recorded on Friday.
A transaction in the Air Service sector was at low ebb at the close of trading session as Air Service share price recorded depreciation as against appreciation recorded in the share of Nacho on Friday.
Bulls remained dominant in the banking stocks as transactions in the sector closed with fifteen gainers to three losers compared with seventeen gainers to two losers recorded on Friday. Investors’ interest in the sector continues to grow stronger by the day.
The bulls influence in the Breweries sector remained relatively as the only price change recorded was on the positive note, a reverse of the previous day’s trend.
The bulls and bears were at loggerheads for control in the in the building materials sector as transactions in the sector closed with two gainers to a loser compared with three gainers to one loser recorded on Friday.
Performance of stocks in the Conglomerate sector at the close of trading session reflected stronger sell pressures as transactions closed in the sector with two losers compared with one gainer to a loser recorded on Friday.
Bulls and bears continue to strive for dominance in the Construction sector as transactions closed with a gainer to a loser, a repeat of the previous day’s trend.
The number of gainers in the Food & Beverages sector declined to one compared with five gainers recorded on Friday while the number of losers closed at one, a repeat of the previous day’s losers figures. Stocks in the sector also present buy opportunities for discerning investors.
The rate of volatility remains in the insurance sector; transactions in the sector closed with five gainers to four losers compared with six losers to three gainers recorded on Friday.
The outlook of Petroleum marketing sector closed on a bearish note as transactions in the sector closed with two heavy decliners to a gainer compared with a marginal decline recorded on Friday.
The total transaction volume at the close of market session today dipped by -34.21% to close at 366.345 million units exchanged in 6,028 deals as against volume growth by +17.04% recorded on Friday to close at 566.863 million units exchanged in 5,888 deals.
In the same vein, market value dropped by -11.21% to close at N3.561 billion (US$23.792 million) as against value growth by +13.64% recorded on Friday to close at N4.012 billion (US$26.797 billion). Red Star Express Plc topped the gainers chart for the day with price appreciation by +5%. However, African Petroleum Plc topped the losers chart for the day with –4.98% price depreciations.
The total volume traded in the shares of top five trades at the close of trading session stood at 164.879 million units valued at N1.507 billion (US$10.068 million) exchanged in 1,726 deals. The volume and value of the top five trades for the day accounted for 45.01% and 42.32% of the market volume and value in that other.