150312: Market CAP sheds N130.85 billion as bearish sentiment persists

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150312: Market CAP sheds N130.85 billion as bearish sentiment persists

Today, Equity market maintained southwards trend to close negative for the second consecutive session as NSE ASI closes below 21, 000 psychological line while market breadth also closed negative despite an improved outlook amid low volume turnover and naira votes.

Nevertheless, the key benchmark indices retained downtrend to close pessimistic, taking hits majorly from Large CAP stock which was particularly driven by Dangote Cement while Medium CAP stocks also contributed to the outlook recorded today due to sell pressure witnessed in Financial Services and Oil & Gas sectors.

In the same vein, the market capitalization of 186 first-tier equities depreciated by N130.85 billion as market sentiments remained negative. 95 equities were traded today as against previous 98 with more activities recorded in Financial Services, Conglomerate, Consumer Goods, Oil & Gas, Services, Healthcare, Industrial Goods, ICT, and Agriculture sectors.

Today, four out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips sustained downtrend by -1.97%, NSE Insurance recorded the only gain by +0.48% while NSE Oil & Gas closed downwards by -1.56% while NSE banking recorded -1.81% loss as NSE Food also recorded by -1.19% loss.

At the close of trading session, the NSE All-Share Index dips by -1.97% to close at 20,658.28 as against a decline by -0.73% recorded in the previous session to close at 21,072.93. In the same vein, market capitalization depreciated by N130.85billion (US$872.09million) to close at N6.51trillion (US$43.44billion) as against depreciation by N48.93billion (US$326.11million) recorded in preceding session to close at N6.65trillion (US$44.32billion).

The number of gainers at the close of trading session closed lower at 17 as against 11 recorded in the previous session while decliners closed higher at twenty-two (22) as against twenty-seven (27) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following company presented its result

1. GlaxoSmithKline Plc: in its Audited 2011 result recorded positive turnover growth of 27.6% and positive PAT growth of 16.4%.

Also, the following companies presented their forecasts

2. Afromedia Plc Q2 2012: Turn over N746.845m Cost of Sales (N439.741m) Profit before Tax N19.353m Taxation (N5.805m) Profit after Tax N13.547m

3. Standard Alliance Insurance Plc Q2 2012: Premium Income N2.142b Reinsurance (N93.371m) Commission Received N28.602m Claimed Insured (N267.212m) Total Expenses (N887.625m) Profit before Tax N514.035m Taxation (N32.930m) Profit after Tax N475.964m

4. Fidson Healthcare Plc Q2 2012: Turnover N1.770b Profit before Tax N189.648m Forecast Taxation (N56.894m) Profit after Tax N132.754m

5. Continental Reinsurance Plc Q2 2012: Turnover N6.917b Cost of Sales (N4.972b) Profit before Tax N1.006b Forecast Taxation (N201m) Profit after Tax N805m

6. Cadbury Nig Plc Q2 2012: Turn over N18.803b Cost of Sales (13.203b) Marketing/Distribution & Admin Expenses (N4.346b) Other Income N3.000m Interest Income N274.021m Interest Expense and Similar Charges (N33.750m) Profit before Tax N1.496b Taxation (N419.037m) Profit after Tax N1.077b

As usual, Financial Services sector led the market transaction volume today with 284.14 million units valued at N1.00 billion (US$6.68 million) exchanged in 2,073 deals as against 556.24 million units valued at N1.50 billion (US$10.05 million) exchanged in 2,271 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of FCMB, Goldlink Insurance, Diamond, UBA and Fidelity Bank Plc and the total volume of 165.95 million units valued at N391.51 million traded in five stocks accounted for 40.80% of the entire market volume and their value represented 13.81% of the market’s value.

Transaction volume on the exchange moved down by -34.53% to close at 406.77 million units exchanged in 3,555 deals as against an upbeat by +155.22% recorded in the previous trading to close at 621.35 million units exchanged in 3,721 deals.

Also, market value depreciated by -15.95% to close at N2.83 billion (US$18.89 million) as against depreciation by -37.80% recorded in the previous trading session to close at N3.37 billion (US$22.48 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 284.14 million units of shares traded in 2,073 trades within the sector, followed by Conglomerates sector to come second on the chart with 77.53 million units traded in 167 trades while Consumer Goods sector recorded 31.61 million units in 729 trades to close with third position on the chart. See the full table below

Market Outlook by Classification

At the end of today's session, it was observed that Medium Cap stocks according to new market segmentation topped today's market activity with 46.79% contribution to market turnover, followed by Small Cap stocks with 43.27% while Large Cap stocks stake 9.95% to come last on the chart.

Among the Large cap stocks, GUARANTY, NB and GUARANTY Plc topped the 7 traded stocks in that class while ACCESS, IBTC and WAPCO dominated Medium Cap of 22 traded stocks. Similarly, UNITYBNK, GLAXOSMITH and CONOIL led 66 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with one loser compared with gainer to one loser recorded in the previous session. LIVESTOCK closed with -4.76% after today’s trading session.

The Conglomerates sector closed with one gainer to one loser as against two losers recorded in the previous session. UACN closed by +1.79% while TRANSCORP closed by -3.77% after today’s trading session.

The Construction/Real Estate sector closed with one gainer compared with two gainers recorded in previous session. JBERGER closed with +4.79% after today’s trading session.

The Consumer Goods closed with five gainers to three losers compared with two gainers to six losers recorded in previous session. DANGFLOUR moved northwards by +3.96% while FLOURMILL and HONYFLOUR moved southwards by -5.00% after today’s trading session.

The Financial Services sector closed with six gainers to nine losers compare with two gainers to thirteen losers recorded in the previous session. WEMA moved up by +4.00% while UBN moved down by -4.85% after today’s trading session.

The Healthcare sector closed with three losers compared with one gainer to one loser recorded in previous session. MAYBAKER closed negative with 4.82% after today’s trading session.

The Information & Communication Technology sector closed with no price movement the same market posture recorded in the previous session. All prices in the sector closed flat after today’s trading session.

The Industrial Goods sector closed with one gainer to three losers the same market posture recorded in previous session. BAGCO closed by +2.42% while PORTPAINT closed by -4.78% after today are trading session.

The Natural Resources sector closed with no price movement the same market outlook recorded in previous session. All stocks in the sector closed flat after today’s trading session.

The Oil & Gas sector closed with one gainer two losers the same market outlook recorded in previous session. JAPAULOIL closed by +1.35% while TOTAL closed by -5.00% after today’s trading session.

The Services sector closed with two gainers as against one gainer to three losers recorded in the previous session. LONGMAN closed positive by 4.75% after today’s trading session.

Further analysis on Acquiring Banks showed that the share prices of Access Bank Plc closed negative with -3.72% as ETI and FCMB Plc also closed negative with -2.14% & -5.00% losses respectively. Sterling Bank Plc gained by +3.42% while Union Bank Plc also closed negative by -4.85% after today’s trading session. See the tracking table below.

Acquiring Banks