300412: NSE ASI dips by -0.29%; FCMB grows PAT by +153%

Category: Daily & Weekly Market Updates

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300412: NSE ASI dips by -0.29%; FCMB grows PAT by +153%

Equity market closed southwards to open the first trading day of the week pessimistic as sell pressure outweighed bargain hunting in some sectors across the main board despite increased volume turnover and Naira votes while market breadth closed appreciably flat.

Nevertheless, the key benchmark indices maintained downtrend as sentiments remained negative, taking hits majorly from Small CAP stocks which was particularly driven by OKOMUOIL while Medium CAP stocks also contributed to the outlook recorded today due to selling activities witnessed in Financial Services and Consumer Goods sectors.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N20.33 billion as market sentiments remained red. 98 equities were traded today as against previous 98 with more activities recorded in Financial Services, Services, Consumer Goods, Conglomerates, Construction/Real Estate, Oil & Gas, Industrial Goods, Healthcare and Agriculture sectors.

Today, three out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips sustained downtrend by -0.36%, NSE Insurance closed upbeat by +1.33% while NSE Oil & Gas recorded the highest loss by -1.09% with NSE banking recording -0.84% loss while NSE Food recorded +0.02% marginal gain.

At the close of trading session, the NSE All-Share Index dips by -0.29% to close at 22,045.66 as against a marginal decline by -0.001% recorded in the previous session to close at 22,109.44. In the same vein, market capitalization depreciated by N20.33billion (US$135.55 million) to close at N7.03trillion (US$46.85billion) as against depreciation by N102.59 million (US$0.683 million) recorded in preceding session to close at N7.05trillion (US$46.99billion).

The number of gainers at the close of trading session closed higher at 19 as against 17 recorded in the previous session while decliners closed lower at eighteen (18) as against twenty-four (24) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. FCMB Plc: in its Q1 2012 result recorded negative turnover growth of -67.7% and positive PAT growth of +153.7%.

2. Ecobank Transnational Inc: in its Q1 2012 result recorded positive turnover growth of +60.1% and negative PAT growth of -9.7%.

3. Nestle Nigeria Plc: in its Q1 2011 result recorded positive turnover growth of +40.7% and positive PAT growth of +140.1%.

4. Starcomms Plc: in its Q1 2012 result recorded negative turnover growth of -30.6% and negative PAT growth of -329.3%.

Also, the following company presented its forecast

5. BOC Gases Plc Q2 2012: Turnover N1.160b Profit before Tax N247.894m Taxation (N78.399m) Profit after Tax N169.499m

As usual, Financial Services sector led the market transaction volume today with 485.76 million units valued at N4.03 billion (US$26.89 million) exchanged in 2,235 deals as against 357.54 million units valued at N1.69 billion (US$11.31 million) exchanged in 2,951 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of FCMB, GUARANTY, ZENITHBANK, ETI and ACCESS Plc and the total volume of 386.54 million units valued at N3.64 billion traded in five stocks accounted for 57.75% of the entire market volume and their value represented 57.83% of the market’s value.

Transaction volume on the exchange moved up by +61.78% to close at 669.36 million units exchanged in 4,143 deals as against an upbeat by +29.47% recorded in the previous trading to close at 413.75 million units exchanged in 4,380 deals.

Also, market value appreciated by +102.7% to close at N6.30 billion (US$42.01 million) as against depreciation by -3.40% recorded in the previous trading session to close at N3.10 billion (US$20.72 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 485.76 million units of shares traded in 2,235 trades within the sector, followed by Services sector to come second on the chart with 102.37 million units traded in 164 trades while Consumer Goods sector recorded 39.82 million units in 990 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 51.76% contribution to market turnover, followed by Small Cap stocks with 25.50% while Large Cap stocks stake 22.74% to come last on the chart.

Among the Large cap stocks, DANGCEM, NB and GUARANTY Plc topped the 7 traded stocks in that class while UBA, IBTC and WAPCO dominated Medium Cap of 21 traded stocks. Similarly, DANGFLOUR, GLAXOSMITH and ASHAKACEM led 70 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW
The Agriculture sector closed with two gainers to one loser as against one gainer and one unchanged price recorded in the previous session. Okomu Oil Palm Plc closed with +4.55% while Livestock Feeds Plc closed with -4.12% loss after today’s trading session.

The Conglomerates sector closed with one gainer and three unchanged prices as against one gainer to one loser recorded in the previous session. Transcorp Plc closed with +1.96% gain after today’s trading session.

The Construction/Real Estate sector closed with one gainer and one unchanged price as against two losers and one unchanged price recorded in the previous session.

The Consumer Goods sector closed with one gainer to five losers as against four gainers to six losers recorded in previous session. Cadbury Plc moved northwards by +5.00% while Dangote Sugar Refinery Plc moved southwards by -3.57% after today’s trading session.

The Financial Services sector closed with nine gainers to six losers as against five gainers to eight losers recorded in the previous session. FCMB Plc moved up by +4.97% while AIICO Plc moved down by -4.00% after today’s trading session.

The Healthcare sector closed with three gainers to three unchanged prices compared to one gainer to eight unchanged prices recorded in previous session.

The Information & Communication Technology sector closed with no price movement as against one gainer to four unchanged prices recorded in the previous session.

The Industrial Goods sector closed with four losers to five unchanged prices as against two gainers to one loser recorded in previous session.

The Natural Resources 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 Oil & Gas sector closed with one gainer to one loser as against one gainer to three losers recorded in previous session. Japaul Oil closed positive by +3.70% while Oando Plc closed negative by -4.65% after today’s trading session.

The Services sector closed with one gainer to one loser as against one gainer to two losers recorded in the previous session. RT Briscoe Plc closed positive by +4.35% while NAHCO Plc closed negative with -0.12% after today’s trading session.

Further analysis on Acquiring Banks since transaction date showed that the share price of Access Bank Plc has recorded 18.59% gain, followed by FCMB with 40.77% while Union Bank Plc leads the chart with 89.00% gain. However, Sterling Bank and ETI Plc both recorded -13.39% loss and +0.26% gain respectively. See the tracking table below.

Acquiring Banks