030412: Equity Market closes green to halt bearish trend; records +0.96% gain

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030412: Equity Market closes green to halt bearish trend; records +0.96% gain

Trading activities on the Nigerian bourse closed positive to halt the seven trading days losing streak as the bulls re-appeared in style while market breadth closed impressive amid slightly improved volume turnover.

Nevertheless, the key benchmark indices retraced to close positive as sentiments turn green, taking supports majorly from Large CAP stock which was particularly driven by Zenith Bank while Medium CAP stocks also contributed to the outlook recorded today due to buying activities witnessed in Conglomerates and Financial Services sectors.

In the same vein, the market capitalization of 186 first-tier equities appreciated by N63.10 billion as market sentiments turned positive. 106 equities were traded today as against previous 94 with more activities recorded in Financial Services, Consumer Goods, Oil & Gas, Services, Construction/Real Estate, Industrial Goods, Conglomerates, Healthcare, Agriculture and ICT sectors.

Today, four out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips maintained uptrend by +1.24%, NSE Insurance retraced by +0.31% while NSE Oil & Gas closed downwards by -1.27% with NSE banking recording the highest gain by +3.47% while NSE Food also recorded +0.55% gain.

At the close of trading session, the NSE All-Share Index inches up by +0.96% to close at 20,849.94 as against a decline by -0.01% recorded in the previous session to close at 20,650.95. In the same vein, market capitalization appreciated by N63.10million (US$420.59million) to close at N6.61trillion (US$44.06billion) as against depreciation by N481.70billion (US$3.21million) recorded in preceding session to close at N6.54trillion (US$43.64billion).

The number of gainers at the close of trading session closed higher at 25 as against 18 recorded in the previous session while decliners closed lower at twenty-three (23) as against twenty-nine (29) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. Diamond Bank Plc: in its Q1 2012 result recorded positive turnover growth of +51.2% and negative PBT growth of +316.7%.

2. Japaul Oil & Maritime Plc: in its Audited 2011 result recorded positive turnover growth of +43.7% and positive PAT growth of +23.7%. The company rewards investors with 2k dividend. The closure date is 14^th June, 2012 while Qualification date is13th June, 2012.

3. Morison Industries Plc: in its Audited 2011 result recorded negative gross earnings growth of -23.8% and positive PAT growth of +21.1%.

4.Berger Paints Plc: in its Audited 2011 result recorded negative gross earnings growth of -6.6% and negative PAT growth of -43.5%.

5. Ashaka Cement Plc: in its Audited 2011 result recorded positive turnover growth of +8.5% and positive PAT growth of +18.9%. The company rewards investors with N0.40k dividend. The closure date is 4^th June, 2012. Qualification date is 1^st June, 2012 while payment and AGM dates are yet to be advised.

6. Tantalizer Plc: in its Audited 2011 result recorded negative gross earnings growth of -5.8% and positive PAT growth of +66.0%. The company rewards investors with 2k dividend. The closure date is 28^th May, 2012. Qualification date is 25^th May, 2012 while AGM date is 28^th July 2012.

7. Multiverse Plc: in its Audited 2011 result recorded positive gross earnings growth of +16.8% and negative PAT growth of -40.7%.

As usual, Financial Services sector led the market transaction volume today with 222.42 million units valued at N1.38 billion (US$9.25 million) exchanged in 2,385 deals as against 155.64 million units valued at N879.07 million (US$5.85 million) exchanged in 2,180 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of Diamond, Zenith, Guaranty, AIICO and First Bank and the total volume of 135.05 million units valued at N1.03 billion traded in five stocks accounted for 51.42% of the entire market volume and their value represented 46.96% of the market’s value.

Transaction volume on the exchange moved up by +17.31% to close at 262.66 million units exchanged in 4,130 deals as against a decline by -27.51% recorded in the previous trading to close at 223.90 million units exchanged in 3,697 deals.

Also, market value appreciated by +47.74% to close at N2.19 billion (US$14.64 million) as against depreciation by -33.36% recorded in the previous trading session to close at N1.48 billion (US$9.91 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 222.42 million units of shares traded in 2,385 trades within the sector, followed by Consumer Goods sector to come second on the chart with 10.27 million units traded in 761 trades while Oil & Gas sector recorded 7.20 million units in 350 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 47.29% contribution to market turnover, followed by Large Cap stocks with 28.74% while Small Cap stocks stake 23.97% 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, DANGFLOUR, GLAXOSMITH and ETRANZACT led 77 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 one gainer to two losers recorded in the previous session. OKOMUOIL closed with +5.00% while PRESCO closed with -4.96% after today’s trading session.

The Conglomerates sector closed with two gainers as against one gainer recorded in the previous session. AGLEVENT closed by +4.55% after today’s trading session.

The Construction/Real Estate sector closed with no price movement as against no price movement recorded in previous session. All stocks in the sector closed flat after today’s trading session.

The Consumer Goods sector closed with three gainers to six losers compared with three gainers to four losers recorded in previous session. NESTLE moved northwards by 4.60% while CADBURY moved southwards by 5.00% after today’s trading session.

The Financial Services sector closed with twelve gainers to four losers compare with four gainers to twelve losers recorded in the previous session. ZENITHBANK moved up by +4.84% while CONTINSURE moved down by -4.95% after today’s trading session.

The Healthcare sector closed with two losers compared with two gainers recorded in previous session. MAYBAKER closed negative with 4.78% after today’s trading session.

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

The Industrial Goods sector closed with three gainers to four losers as against four gainers to five losers recorded in previous session. PORTPAINT closed by +4.75% while BERGER and PAINTCOM closed by -4.94% 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 one gainer to four losers as against two gainers to three losers recorded in previous session. MOBIL closed by +0.50% while OANDO closed by -5.00% after today’s trading session.

The Services sector closed with three gainers to two losers as against one gainer to two losers recorded in the previous session. UPL closed positive by 4.57% while RTBRISCOE closed negative by 2.56% after today’s trading session.

Further analysis on acquiring banks since transaction date showed that the share price of Access Bank Plc has recorded 18.79% gain, followed by FCMB with 12.82% while Union Bank Plc leads the chart with 17.70% gain. However, Sterling Bank and ETI recorded -6.30% and -4.80% loss respectively. See the tracking table below.

Acquiring Banks