010910: All Share Index drops marginally by 0.09% as investors remained cautious.

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010910: All Share Index drops marginally by 0.09% as investors remained cautious.

Today’s session could not maintain yesterday’s upward trend to close on bearish note as All Share Index dropped marginally by 0.09% as selling activities resumed to depress market capitalization further by N5.190 billion loss booked against investors stake.

The unimpressive outlook could not be isolated from the ripple effect of the banks to meet the September 1^st 2010 deadline to reduce their market exposure to 10% as directed by CBN which has called for mass selloff as noted in our previous reports (http://www.proshareng.com/news/singlenews.php?id=11860).

The traded volume and value also closed with dropping figures as investors remained inactive and cautious. This has recorded negative impact on the banking sectors as more losers (12 losers to 6 gainers) were recorded in that sector than any other major sectors.

The market outlook recorded today shows that the investing community remained indecisive as market could not sustain positive outlook recorded yesterday, the attractive low share prices could not arouse investors’ appetite towards equities bargain which further suggests that investors are taking cautious decisions.

In the same light, the sectoral indexes reflected the selling activities as NSE 30 which measures trends in blue chips went down along with NSE Food and Beverages and NSE Banking. The NSE insurance, Oil & Gas cushioned the effect to gain marginally.

Today, the price of NCR Plc was marked for a dividend of 5kobo, payment date 30th September 2010. Also price of National Salt Company Plc was marked down for a dividend of 50 kobo, payment date 4th October 2010, and the price of Associated Bus Company Plc was marked for a dividend of 3 kobo.

As usual, banking sector led the market transaction volume today with 129.20 million units valued at N1.31 billion (US$8.76 million) exchanged in 3,392 deals. With the exception of one, transactions in the shares of the top five trades for the day which were all banking stocks accounted for the sector’s volume drive. The total volume of 144.38 million units valued at N1.11 billion traded in the shares of the five stocks accounted for 56.70% of the entire market volume and their value represented 53.08% of the market’s value.

The number of gainers at the close of trading session closed lower at thirty one (31) compared with thirty six (36) gainers recorded on Tuesday; while decliners closed higher at thirty (30) compared twenty six (26) losers recorded the previous trading day.

At the close of trading session, the All-Share Index moved marginally down by -0.09% to close at 24,247.05 as against uptrend by +0.19% recorded on Tuesday to close at 24,268.24. In the same manner, market capitalisation moved down by N5.19 billion (US$34.17 million) to close at N5.94 trillion (US$39.68 billion) as against increase by N23.15 billion (US$154.64 million) recorded on Tuesday to close at N5.94 trillion (US$39.7 billion).

Transaction volume on the exchange moved down by -31.81% to close at 254.63 million units exchanged in 7,165 deals as against volume improvement by +92.34% recorded on Tuesday to close at 373.44 million units exchanged in 7,242 deals.

Also, market value declined by -20.17% to close at N2.11 billion (US$14.09 million)as against improvement by +40.54% recorded on Tuesday to close at N2.64 billion (US$17.65 million).

African Petroleum Plc topped the gainers chart for the day with +5% price appreciations. However, Livestock topped the losers chart for the day with -5% depreciations.

SECTORAL REVIEW

The Agriculture sector closed with two gainers to two losers compared with two gainers to one loser recorded yesterday. The share price of FTN Cocoa Processors Plc continues to inch up as it gained +4.48% while Presco Plc also moved up by +4.33% on the gainers’ chart. However, Livestock Feeds Plc led the losers’ chart in the sector with -5.00% loss and followed by Okomu Oil Palm Plc with -4.97% loss.

The Airservice sector closed with one gainer and one unchanged price compared with one loser and one unchanged price recorded yesterday. The share price of Nahco Aviance Plc inches up by +1.21% while the share price of Air Services and Logistics Plc remained unchanged.

The banking sector closed on a bearish note with six (6) gainers to twelve (12) losers recorded compared with nine (9) gainers to nine (9) losers recorded yesterday. Wema Bank Plc led the gainers’ chart in the sector with +4.49% and closely followed by United Bank for Africa Plc and Oceanic Bank Plc with +2.96% and +1.95% gains respectively while Spring Bank Plc share led the losers’ chart in the sector with -4.76% price decline recorded. Afribank and First City Monument bank Plc followed on the decline chart with -3.70% and -3.54% loss in that order.

In the midst of the reward recently announced by the Board of Access Bank Plc, the share price of the stock still continue to dip today as it lost by -0.12%.

The Breweries sector recorded one gainer to one loser just as one gainer to one loser was also recorded yesterday and Monday. The share price of Nigerian Breweries Plc inches up by +2.01% while Guinness Plc share price lost -1.22% after today’s trading.

In the building materials sector today, one gainer to one loser was recorded compared to three gainers to one loser recorded on previous trading day. The share price of Benue Cement Company Plc represents the only gainer in the sector with +0.16% gain while Cement Company of Northern Nigeria Plc dips by -1.90%. The share prices of Ashaka Cement Plc, Nigerian Ropes Plc and Lafarge WAPCO Plc remained unchanged after today’s trading.

The conglomerates sector recorded three losers to two unchanged prices compared to two gainers to three unchanged prices recorded yesterday. The share prices of PZ Plc, UAC of Nigeria and Unilever Nigeria Plc all lost by -3.99%, -2.00% and -0.41% respectively while the share prices of Transnational Corporation of Nigeria and AG Leventis Plc remained unchanged.

The Food and Beverages sector recorded one gainer to three losers after today’s trading compared with three gainers to three losers recorded yesterday. The share price of Dangote Flour Mills Plc which is the only gainer in the sector moved up by +2.34% while Big Treat Plc, Nigerian Bottling Company and Flour Mills Plc all lost by -3.77%, -3.28% and -2.29% respectively.

The Insurance sector recorded three gainers to two losers compared with two gainers to three losers recorded on previous trading day.

The Petroleum sector records two gainers and six unchanged prices compared with one loser and seven unchanged prices recorded yesterday. The share price of African Petroleum Plc gained +5.00% followed by Oando Plc with +0.32% gain while other stocks in the sector experienced unchanged price movement.

The total volume traded in the shares of top five trades at the close of trading session stood at 144.38 million units valued at N1.12 billion (US$7.47 million) exchanged in 1,690. The volume and value of the top five trades for the day accounted for 56.70% and 53.08% of the market volume and value in that other.