260312: Equity market dips by -0.90% as sentiments remain unchanged

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260312: Equity market dips by -0.90% as sentiments remain unchanged

As investors return from the weekend, equity market maintained its losing streak to open the first trading day of the week negative while investors continue to tread cautiously amid weak market breadth with volume turnover and Naira votes closing appreciably upwards by +361.79% and +369.88% respectively.

Nevertheless, the key benchmark indices continued southwards movement, taking hits majorly from Large CAP stock which was particularly driven by Guinness while Medium CAP stocks also contributed to the outlook recorded today due to sell pressure witnessed in Conglomerates, Financial Services and Oil & Gas sectors.

In the same vein, the market capitalization of 186 first-tier equities depreciated by N60.59 billion as market sentiments remained negative. 99 equities were traded today as against previous 103 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Industrial Goods, Oil & Gas, Services, Healthcare, Agriculture and Construction/Real Estate sectors.

Today, four out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips retraced by -1.76%, NSE Insurance recorded +1.98% gain while NSE Oil & Gas closed downwards by -0.85% with NSE banking recording the highest loss by -3.54% while NSE Food also recorded by -0.77% loss.

At the close of trading session, the NSE All-Share Index dips by -0.90% to close at 21,000.15 as against a decline by -0.33% recorded in the previous session to close at 21,191.22. In the same vein, market capitalization depreciated by N60.59billion (US$403.84million) to close at N6.66trillion (US$44.38billion) as against depreciation by N22.22billion (US$148.01million) recorded in preceding session to close at N6.72trillion (US$44.78billion).

The number of gainers at the close of trading session closed higher at 18 as against 15 recorded in the previous session while decliners closed lower at twenty-two (22) as against seventeen (17) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following company presented its results

1. Union Bank Plc: in its Q2 2011 result recorded negative gross earnings growth of -16.60% and positive PAT growth of -621.86.

2. Union Bank Plc: in its Q3 2011 result recorded negative gross earnings growth of -8.32% and positive PAT growth of -1017.78%.

Also, the following company presented its forecast

3. Niger Insurance Plc Q1 2012: Gross Premium N2.732b Investment and other income N75.625m Profit before Tax N273.645m Taxation (N60.691m) Profit after Tax N212.954m

As usual, Financial Services sector led the market transaction volume today with 198.86 million units valued at N1.03 billion (US$6.91 million) exchanged in 2,082 deals as against 205.73 million units valued at N1.68 billion (US$11.22 million) exchanged in 1,913 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of Diamond, Continsure, Zenith, FCMB and UBA Plc and the total volume of 125.35 million units valued at N578.55 million traded in five stocks accounted for 47.94% of the entire market volume and their value represented 30.04% of the market’s value.

Transaction volume on the exchange moved up by +361.79% to close at 261.49 million units exchanged in 3,602 deals as against a decline by -73.24% recorded in the previous trading to close at 55.65 million units exchanged in 780 deals.

Also, market value appreciated by +369.88% to close at N1.90 billion (US$12.68 million) as against depreciation by -85.86% recorded in the previous trading session to close at N455 million (US$3.03 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 198.86 million units of shares traded in 2,082 trades within the sector, followed by Conglomerates sector to come second on the chart with 38.29 million units traded in 174 trades while Consumer Goods sector recorded 10.49 million units in 590 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 Small Cap stocks according to new market segmentation topped today's market activity with 37.52% contribution to market turnover, followed by Medium Cap stocks with 36.52% while Large Cap stocks stake 25.58% to come last on the chart.

Among the Large cap stocks, GUARANTY, NB and GUARANTY Plc topped the 8 traded stocks in that class while UNILEVER, IBTC and WAPCO dominated Medium Cap of 22 traded stocks. Similarly, STERLNBANK, GLAXOSMITH and CONOIL led 69 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW
The Agriculture sector closed with one gainer to one loser as against no price movement recorded in the previous session. LIVESTOCK closed with +5.00% while PRESCO closed with -4.95% after today’s trading session.

The Conglomerates sector closed with one gainer to one loser as against one loser recorded in the previous session. TRANSCORP closed by +3.64% while UACN closed by -4.36% after today’s trading session.

The Construction/Real Estate sector closed with one gainer compared to two gainers recorded in previous session. JBERGER closed by +10.24% after today’s trading session.

The Consumer Goods sector closed with four gainers to five losers compared with one gainer to three losers recorded in previous session. CADBURY moved northwards by 5.00% while GUINNESS moved southwards by 3.77% after today’s trading session.

The Financial Services sector closed with five gainers to eight losers compare with five gainers to nine losers recorded in the previous session. GTASSURE moved up by +4.92% while UBN moved down by -4.89% after today’s trading session.

The Healthcare sector closed with one loser compared with two gainers recorded in previous session. MAYBAKER closed negative with 5.00% after today’s trading session.

The Information & Communication Technology sector closed with no price movement as against one gainer recorded in the previous session. All stocks in the sector closed flat after today’s trading session.

The Industrial Goods sector closed with four gainers to two losers as against two gainers to three losers recorded in previous session. CAP closed by +5.00% while BERGER closed by -4.65% after today’s 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 two losers as against one gainer recorded in previous session. JAPAULOIL closed by -4.00% after today’s trading session.

The Services sector closed with two gainers to one loser as against one gainer to one loser recorded in the previous session. REDSTAREX closed positive by 4.82% while HAHCO closed negative by 2.11% after today’s trading session.

Further analysis on acquiring banks since transaction date showed that the share price of Access Bank Plc has recorded 32.93% gain, followed by FCMB with 9.49% while Union Bank Plc leads the chart with 58.37% gain which was significantly impacted by the recent share reconstruction. However, Sterling Bank and ETI recorded -10.24% and -5.74% loss respectively. See the tracking table below.

Acquiring Banks