020512: Equity Market closes optimistic; ASI inches up by +1.39%

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020512: Equity Market closes optimistic; ASI inches up by +1.39%

Today, Nigerian Stock Market retraced to close in the positive territory after two consecutive sessions of negative outlook amid impressive market breadth while NSE notifies all Listed Companies that the 1st Quarter Financial Statements for 2012 is expected to be IFRS Compliant as Statements that do not meet with statutory requirement will not be recognized as appropriately filed and will not be presented to the market.

Nevertheless, the key benchmark indices resumed uptrend as sentiments turned green, taking support majorly from Large CAP stock which was particularly driven by GUARANTY 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 appreciated by N97.37 billion as market sentiments turned green. 104 equities were traded today as against previous 98 with more activities recorded in Financial Services, Consumer Goods, Oil & Gas, Services, Conglomerates, Industrial Goods, Healthcare, Agriculture, Construction/Real Estate, ICT and Oil & Gas sectors.

Today, three out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips retraced by +1.60%, NSE Insurance closed downbeat by -0.45% while NSE Oil & Gas recorded the highest loss by -1.03% with NSE banking recording +4.15% gain while NSE Food recorded +1.08% gain.

At the close of trading session, the NSE All-Share Index inches up by +1.39% to close at 22,351.00 as against a decline by -0.29% recorded in the previous session to close at 22,045.66. In the same vein, market capitalization appreciated by N97.37billion (US$648.95 million) to close at N7.12trillion (US$47.50billion) as against depreciation by N20.33 billion (US$135.55 million) recorded in preceding session to close at N7.03trillion (US$46.85billion).

The number of gainers at the close of trading session closed higher at 31 as against 19 recorded in the previous session while decliners closed lower at eleven (11) as against eighteen (18) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. Union Diagnostics & Clinical Services Plc: in its Audited 2011 result recorded positive turnover growth of 27.7% and negative PAT growth of -40.7%.

2. McNichols Plc: in its Audited 2011 result recorded positive turnover growth of +48.5% and positive PAT growth of +193.7%.

3. Guinness Nigeria Plc: in its Q1 2012 result recorded positive turnover growth of +2.5% and negative PAT growth of -24%.

4. First Bank Plc: in its Q1 2012 result recorded negative turnover growth of +42.5% and positive PAT growth of +101.6%.

5. UAC of Nigeria Plc: in its Q1 2012 result recorded negative turnover growth of +23.5% and positive PAT growth of +1.74%.

6. Lafarge WAPCO Plc: in its Q1 2012 result recorded positive turnover growth of +59.3% and positive PAT growth of +151.1%.

As usual, Financial Services sector led the market transaction volume today with 443.14 million units valued at N3.57 billion (US$23.79 million) exchanged in 2,375 deals as against 485.76 million units valued at N4.03 billion (US$26.89 million) exchanged in 2,235 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of FCMB, ZENITHBANK, SKYEBANK, ACCESS and GUARANTY Plc and the total volume of 306.42 million units valued at N2.83 billion traded in five stocks accounted for 61.50% of the entire market volume and their value represented 58.22% of the market’s value.

Transaction volume on the exchange moved down by -25.56% to close at 498.26 million units exchanged in 4,146 deals as against an upbeat by +61.78% recorded in the previous trading to close at 669.36 million units exchanged in 4,143 deals.

Also, market value depreciated by -22.71% to close at N4.87 billion (US$32.47 million) as against appreciation by +102.7% recorded in the previous trading session to close at N6.30 billion (US$42.01 million).

Sectoral Performance (According to New Market Segmentation)
Financial Services sector led the market sectoral performance with 443.14 million units of shares traded in 2,375 trades within the sector, followed by Consumer Goods sector to come second on the chart with 19.26 million units traded in 786 trades while Oil & Gas sector recorded 16.71 million units in 331 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 58.27% contribution to market turnover, followed by Large Cap stocks with 29.73% while Small Cap stocks stake 12.00% 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 76 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. Livestock Feeds Plc closed with +4.30% while Presco Plc closed with -2.95% loss after today’s trading session.

The Conglomerates sector closed with one gainer to one loser as against one gainer and three unchanged prices recorded in the previous session. Transcorp Plc closed with +3.85% gains after today’s trading session.

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

The Consumer Goods sector closed with eight gainers to seven unchanged prices as against one gainer to five losers recorded in previous session. Cadbury Plc moved northwards by +4.96% after today’s trading session.

The Financial Services sector closed with thirteen gainers to three losers as against nine gainers to six losers recorded in the previous session. Guaranty Plc moved up by +4.99% while Goldlink Insurance Plc moved down by -5.00% after today’s trading session.

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

The Information & Communication Technology sector closed with no price movement as against no price movement recorded in the previous session.

The Industrial Goods sector closed with two gainers to two losers as against four losers to five unchanged prices 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 two losers to six unchanged prices as against one gainer to one loser recorded in previous session. Japaul Oil closed negative by -3.57% after today’s trading session.

The Services sector closed with three gainers to seven unchanged prices as against one gainer to one loser recorded in the previous session. RT Briscoe Plc closed positive by +4.86% after today’s trading session.

Further analysis on Acquiring Banks since transaction date showed that the share price of Access Bank Plc has recorded 24.44% gain, followed by FCMB with 46.15% while Union Bank Plc leads the chart with 98.09% gain. However, Sterling Bank and ETI Plc both recorded -9.45% loss and +0.17% gain respectively. See the tracking table below.

Acquiring Banks