290312: Market CAP sheds N160bn in five days; IBTC proposes 10k dividend

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290312: Market CAP sheds N160bn in five days; IBTC proposes 10k dividend

The bears continue to dominate market activities for the fifth consecutive session due to continued sell pressure to further extend market losses just as market breadth also closed considerably depressed as against previous outlook amid low volume turnover and Naira votes.

Furthermore, market YTD performance currently stands at +0.41%.

Nevertheless, the key benchmark indices sustained bearish sentiments, taking hits majorly from Large CAP stock which was particularly driven by NESTLE while Medium CAP stocks also contributed to the outlook recorded today due to selling activities witnessed in Conglomerates, Consumer Goods Financial Services and Oil & Gas sectors.

In the same vein, the market capitalization of 186 first-tier equities depreciated by N45.59 billion as market sentiments remained bearish. 94 equities were traded today as against previous 90 with more activities recorded in Financial Services, Consumer Goods, Services, Conglomerates, Industrial Goods, Natural Resources, Agriculture, Oil % Gas, ICT and Healthcare sectors.

Today, All five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips maintained downtrend by -0.85%, NSE Insurance retraced by -0.79% while NSE Oil & Gas also closed downwards by -3.61% with NSE banking recording -0.78% loss while NSE Food recorded -1.44% loss.

At the close of trading session, the NSE All-Share Index dips by -0.69% to close at 20,756.19 as against a decline by -0.08% recorded in the previous session to close at 20,899.97. In the same vein, market capitalization depreciated by N45.59billion (US$303.89million) to close at N6.58trillion (US$43.87billion) as against depreciation by N5.09billion (US$33.94million) recorded in preceding session to close at N6.62trillion (US$44.17billion).

The number of gainers at the close of trading session closed higher at 19 as against 21 recorded in the previous session while decliners closed lower at thirty (30) as against nineteen (19) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. Stanbic IBTC Bank Plc: in its Audited 2011 result recorded positive turnover growth of +18.8% and negative PAT growth of -21.3%. The company rewards investors with N0.10k dividend. The closure date is 20^th April, 2012.

2. Capital Hotels Plc: in its Audited 2011 result recorded negative turnover growth of -2.50% and negative PAT growth of -2.91%. The company rewards investors with 7k cash dividend. The closure date is 4^th June, 2012. Qualification date is 1^st June, 2012 while payment and AGM date is 5^th July and 31^st June, 2012.

3. Nacho Plc: in its Audited 2011 result recorded positive gross earnings growth of +12.55% and negative PAT growth of -35.62%. The company rewards investors with N0.25k cash and 1 for 5 bonus dividends. The closure date is 14^th May, 2012. Qualification date is 11^th May, 2012 while payment and AGM date is 7^th June, 2012.

4. DN Tyre and Rubber Plc: in its Audited 2011 result recorded positive gross earnings growth of +32.59% and positive PAT growth of +48.34%.

5. Ecobank Transnational Inc: in its Audited 2011 result recorded positive turnover growth of +33.75% and positive PAT growth of +56.91%. The company rewards investors with 0.4cents cash dividend. The closure date is 23^rd May, 2012. Qualification date is 22^nd May, 2012 while payment is 5^th June, 2012.

As usual, Financial Services sector led the market transaction volume today with 158.05 million units valued at N1.02 billion (US$6.85 million) exchanged in 2,157 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 Guaranty, Diamond, Zenith, UBA and First Bank and the total volume of 86.08 million units valued at N783.01 million traded in five stocks accounted for 40.55% of the entire market volume and their value represented 42.20% of the market’s value.

Transaction volume on the exchange moved down by -16.40% to close at 212.26 million units exchanged in 3,694 deals as against a decline by -37.50% recorded in the previous trading to close at 253.91 million units exchanged in 4,180 deals.

Also, market value depreciated by -23.46% to close at N1.85 billion (US$12.36 million) as against depreciation by -22.13% recorded in the previous trading session to close at N2.42 billion (US$16.15 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 158.05 million units of shares traded in 2,157 trades within the sector, followed by Consumer Goods sector to come second on the chart with 12.76 million units traded in 628 trades while Services sector recorded 10.34 million units in 117 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 39.71% contribution to market turnover, followed by Small Cap stocks with 33.28% while Large Cap stocks stake 27.01% 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 23 traded stocks. Similarly, HONYFLOUR, GLAXOSMITH and CONOIL led 64 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with two gainers as against one gainer to one loser recorded in the previous session. OKOMUOIL closed with +5.00% after today’s trading session.

The Conglomerates sector closed with three losers as against two losers recorded in the previous session. AGLEVENT closed by -4.55% after today’s trading session.

The Construction/Real Estate sector closed with one loser the same market posture recorded in previous session. UAC-PROP closed by -4.93% after today’s trading session.

The Consumer Goods sector closed with four gainers to six losers compared with five gainers to three losers recorded in previous session. NASCON moved northwards by 4.91% while DANGFLOUR moved southwards by 4.90% after today’s trading session.

The Financial Services sector closed with six gainers to ten losers compare with six gainers to nine losers recorded in the previous session. ETI moved up by +2.27% while UBN moved down by -5.00% after today’s trading session.

The Healthcare sector closed with one gainer to one loser compared with one loser recorded in previous session. FIDSON closed positive with 4.55% while MAYBAKER closed negative with 4.39% after today’s trading session.

The Information & Communication Technology sector closed with one loser as against no price movement recorded in the previous session. TRIPPLEG closed with -5.00% after today’s trading session.

The Industrial Goods sector closed with five gainers to one loser as against seven gainers to two losers recorded in previous session. CAP closed by +4.99% while WAPCO closed by -2.10% after today’s 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 six losers as against one loser recorded in previous session. MOBIL closed by -5.00% after today’s trading session.

The Services sector closed with one gainer to one loser as against two gainers to one loser recorded in the previous session. NAHCO closed positive by 4.92% while REDSTAREX closed negative by 4.98% after today’s trading session.

Further analysis on acquiring banks since transaction date showed that the share price of Access Bank Plc has recorded 21.82% gain, followed by FCMB with11.28% while Union Bank Plc leads the chart with 36.36% gain. However, Sterling Bank and ETI recorded -17.32% and -3.60% loss respectively. See the tracking table below.

Acquiring Banks