280312: Equity Market records marginal loss as bearish sentiment persists

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280312: Equity Market records marginal loss as bearish sentiment persists

Today, trading activities on the Nigerian bourse closed with the bears as market continued its losing streak for the fourth session in a row despite the improved market breadth witnessed while the slight gain recorded in the share price of Dangote Cement Plc, market leader by capitalisation could not lift the market indicator further to the positive territory.

Nevertheless, the key benchmark indices sustained negative movement, taking hits majorly from Medium CAP stock which was particularly driven by ACCESS while Small CAP stocks also contributed to the outlook recorded today due to selling activities witnessed inConglomerates, Financial Services and Healthcare sectors.

In the same vein, the market capitalization of 186 first-tier equities depreciated by N5.09 billion as market sentiments remained negative. 90 equities were traded today as against previous 93 with more activities recorded in Financial Services, Consumer Goods, Industrial Goods, Services, ICT, Conglomerates, Oil & Gas, Healthcare, Agriculture and Construction/Real Estate sectors.

Today, three out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips maintained downtrend by -0.17%, NSE Insurance retraced by +1.21% while NSE Oil & Gas closed downwards by -0.77% with NSE banking recording -0.46% loss while NSE Food recorded +0.06% marginal gain.

At the close of trading session, the NSE All-Share Index dips by -0.08% to close at 20,899.97 as against a decline by -0.90% recorded in the previous session to close at 20,916.03. In the same vein, market capitalization depreciated by N5.09billion (US$33.94million) to close at N6.62trillion (US$44.17billion) as against depreciation by N26.67billion (US$177.80million) recorded in preceding session to close at N6.63trillion (US$44.20billion).

The number of gainers at the close of trading session closed higher at 21 as against 13 recorded in the previous session while decliners closed lower at nineteen (19) as against twenty-two (29) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

Presco Plc: in its Audited 2011 result recorded positive turnover growth of +58.48% and positive PAT growth of +54.52%. The company rewards investors with N1.00k dividend. The closure date is 16^th July, 2012 while payment date is 6^th August, 2012.

Tourist Company of Nigeria Plc: in its Q2 2011 result recorded positive turnover growth of +17.5% and negative PAT growth of -40.6%.

Champion Breweries Plc: in its Audited 2011 result recorded negative gross earnings growth of -4.38% and negative PAT growth of -47.53%.

As usual, Financial Services sector led the market transaction volume today with 187.21 million units valued at N1.36 billion (US$9.07 million) exchanged in 2,429 deals as against 335.64 million units valued at N2.30 billion (US$15.33 million) exchanged in 2,356 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of Zenith, Guaranty, Wema Bank, Goldlink and Access and the total volume of 124.55 million units valued at N1.09 billion traded in five stocks accounted for 49.05% of the entire market volume and their value represented 45.14% of the market’s value.

Transaction volume on the exchange moved down by -37.50% to close at 253.91 million units exchanged in 4,180 deals as against an upbeat by +55.38% recorded in the previous trading to close at 406.29 million units exchanged in 4,011 deals.

Also, market value depreciated by -22.13% to close at N2.42 billion (US$16.15 million) as against appreciation by +63.61% recorded in the previous trading session to close at N3.11 billion (US$20.74 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 178.21 million units of shares traded in 2,429 trades within the sector, followed by Consumer Goods sector to come second on the chart with 18.47 million units traded in 745 trades while Industrial Goods sector recorded 13.95 million units in 312 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 36.68% contribution to market turnover, followed by Large Cap stocks with 35.94% while Medium Cap stocks stake 27.94% 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, STERLNBANK, GLAXOSMITH and CONOIL led 61 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 two gainers to one loser recorded in the previous session. PRESCO closed with +5.00% while LIVESTOCK closed with -2.73% after today’s trading session.

The Conglomerates sector closed with two losers the same market posture recorded in the previous session. TRANSCORP closed by -3.64% after today’s trading session.

The Construction/Real Estate sector closed with one loser as against one gainer recorded in previous session. JBERGER closed by -1.25% after today’s trading session.

The Consumer Goods sector closed with five gainers to three losers compared with three gainers to six losers recorded in previous session. CADBURY moved northwards by 4.95% while DANGFLOUR moved southwards by 2.00% after today’s trading session.

The Financial Services sector closed with six gainers to nine losers compare with two gainers to twelve losers recorded in the previous session.CONTINSURE moved up by +4.21% while ACCESS moved down by -4.86% after today’s trading session.

The Healthcare sector closed with one loser compared with two losers recorded in previous session. FIDSON closed negative with 1.12% after today’s trading session.

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

The Industrial Goods sector closed with seven gainers as against two gainers to two losers recorded in previous session. BERGER and CAP closed by +5.00% 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 one loser as against four losers recorded in previous session. OANDO closed by -2.71% after today’s trading session.

The Services sector closed with two gainers to one loser as against three gainers recorded in the previous session. NAHCO closed positive by 4.90% while IKEJAHOTEL closed negative by 0.07% after today’s trading session.

Further analysis on acquiring banks since transaction date showed that the share price of Access Bank Plc has recorded 26.46% gain, followed by FCMB with 9.49% while Union Bank Plc leads the chart with 43.54% gain which was significantly impacted by the recent share reconstruction. However, Sterling Bank and ETI recorded -18.11% and -5.74% loss respectively. See the tracking table below.

Acquiring Banks