The sustained price rally of equities on the Nigerian Stock Exchange entered seven trading days without a break at the close of trading session as NSE All-Share Index rose by 26.17 basis points to close at 25,889.98 after recording appreciation by 0.10%.


The aggregate appreciation recorded in the seven trading days closed at +4.45% and market capitalisation which measures the naira value of quoted equities on the exchange inched up by N274.505 billion (US$1.844 billion).


However, both transaction volume and value on the bourse closed lower of their previous day’s figures. The decline in transaction volume and value when juxtaposed with appreciation rate recorded today and the price movement pattern across all the sectors could be showing indications of increased sell pressures.


As stated in our previous market reports (Monday- http://www.proshareng.com/news/11501) and (Tuesday- http://www.proshareng.com/news/11523 ), the trend recorded today may be pointing to likelihood of incidence of profit takings before the week run out as expressed in those reports, as investors may want to rake profit from the rally recorded so far.


The trend of profit taking had been since yesterday and seems to grow stronger today, hence the need for discerning investors to watch the trend very closely to see how the patterns unfold across the sector, most probably for exit at the right time.


Meanwhile, the Central Bank of Nigeria (CBN) has said that while it ensures that all parties are carried along in the recapitalisation of the rescued banks, it has a duty to ensure that wrong persons do not buy or take over the institutions. The CBN pointed out that although shareholders oversee the recapitalisation, the CBN as a regulator must approve any changes in the ownership of the affected banks.


As usual, banking sector led the market transaction volume today with 196.581 million units valued at N1.617 billion (US$10.802 million) exchanged in 4,210 deals. Transactions in the shares of First Bank Nigeria Plc, Access Bank Plc, Diamond Bank Plc, and Zenith Bank Plc boosted the volume traded in the sector. The total volume of 81.424 million units valued at N910.096 million traded in the shares of the four banks accounted for 41.42% of the entire sector volume and their value represented 56.28% of the sector’s value.


The number of gainers at the close of trading session closed higher at twenty eight (28) compared with thirty six (36) gainers recorded on Tuesday, while decliners closed at thirty two (32) compared with twenty nine (29) decliners recorded in the last trading day. Market closed with 1:1.14 advancers to decliners’ ratio.


At the close of trading session, the All-Share Index inched up by +0.10% to close at 25,889.98 compared with appreciation by +1.32% recorded yesterday to close at 25,863.81. Market capitalisation also appreciated by N6.398 billion (US$42.742 million) to close at N6.332 trillion (US$42.296 billion) compared with appreciation by N82.266 billion (US$549.538 million) recorded yesterday to close at N6.325 trillion (US$42.254 billion).


SECTORAL REVIEW
Transactions in the Agriculture sector at the close of trading session ended with two gainers compared with one gainer to a loser recorded in the last two trading days.


The share price of Nacho Plc recorded marginal appreciation while Air Service Plc share price shed weight by -4.65% as against unchanged status of the previous day.


The influence of bulls waned in the banking sector as both bulls and bears squared up in the sector. Transaction in the sector closed with eight gainers to eight losers compared with thirteen gainers to six losers recorded yesterday. The trend recorded could be attributed tom profit taking by the investors. The trend today confirms the fact that speculative trading still exists in the banking stocks.  


The bulls influence in the Breweries sector remained relatively as the only price change recorded was on the positive note, a repeat of the last two trading day’s trend.


The bulls could not take absolute control as before in the in the building materials sector as transactions in the sector closed with two gainers to two losers compared with three gainers and one unchanged recorded yesterday.


Performance of stocks in the Conglomerate sector at the close of trading session recorded a remained positive on relative note as transactions closed in the sector with one gainer compared with two gainers recorded on Tuesday.  


The tempo in Construction sector dropped today as transactions closed with a loser compared with unchanged status in all the share prices recorded yesterday.
The rate of sell pressures increased in the Food & Beverages sector as the number of gainer dropped to one compared with two gainers recorded on Tuesday while the number of losers rose to five. Investors may stay on the sideline for signals to buy in the sector again as stocks in the sector are viable for good returns.


The rate of volatility remains in the insurance sector, closing with higher bids; transactions in the sector closed with six gainers to four losers compared with five gainers to two losers recorded yesterday.


The outlook of Petroleum marketing sector closed on low ebb with a gainer to a loser compared with three losers to one gainer recorded yesterday.


The total transaction volume at the close of market session today declined by -38.95% to close at 324.656 million units exchanged in 6,979 deals as against volume rise by +45.16% recorded yesterday to close at 531.785 million units exchanged in 7,285 deals.


In the same vein, market value nosedived by -28.72% to close at N3.115 billion (US$20.805 million) as against increase by +22.68% recorded on Tuesday to close at N4.369 billion (US$29.189 million). Aiico Insurance Plc, Beco Petroleum Plc, First Inland Bank Plc and Chemical and Allied Products Plc topped the gainers chart for the day with price appreciation by +5%. However, Juli Pharmacy 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 101.606 million units valued at N920.186 million (US$6.147 million) exchanged in 1,661 deals. The volume and value of the top five trades for the day accounted for 31.30% and 29.54% of the market volume and value in that other.









Follow the link http://www.proshareng.com/bankingStockResults.html to get the latest banking results details.

research@proshareng.com, 00234-1-7624131, July 28, 2010; 1544hrs