070512: NSE ASI dips by -0.42% as sentiments turn negative

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070512: NSE ASI dips by -0.42% as sentiments turn negative

As investors return from the weekend, trading activities on the Nigerian bourse closed downbeat after three days rally to open the first trading day of the week negative as envisaged in our Sentiments Analysis Report amid slightly improved volume turnover and depressed market breadth.

Nevertheless, the key benchmark indices retraced as sentiments turned negative, taking hits majorly from Large CAP stock which was particularly driven by Zenith Bank Plc.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N30.04 billion as market sentiments turned negative. 91 equities were traded today as against previous 98 with more activities recorded in Financial Services, Consumer Goods, Oil & Gas, Conglomerates, Services, Industrial Goods, ICT, Healthcare, Agriculture, Construction/Real Estate and Natural Resources sectors.

Today, three out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips retraced by -0.61%, NSE Insurance also retraced to close downtick by -0.03% while NSE Oil & Gas recorded +0.15% gain with NSE banking recording -0.74% loss while NSE Food also recorded -0.90% loss.

At the close of trading session, the NSE All-Share Index dips by -0.42% to close at 22,571.78 as against an upbeat by +0.57% recorded in the previous session to close at 22,665.99. In the same vein, market capitalization depreciated by N30.04billion (US$200.03 million) to close at N7.19trillion (US$47.97billion) as against appreciation by N40.82 billion (US$272.08 million) recorded in preceding session to close at N7.22trillion (US$48.17billion).

The number of gainers at the close of trading session closed lower at 21 as against 32 recorded in the previous session while decliners also closed lower at fifteen (15) as against twenty-three (23) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. First Aluminium Plc: in its Q1 2012 result recorded positive turnover growth of +11.6% and positive PBT growth of +11.2%.

2. Eterna Oil & Gas Plc: in its Q1 2012 result recorded positive turnover growth of +974.8% and positive PAT growth of +7.6%.

3. Capital Hotel Plc: in its Q1 2012 result recorded negative turnover growth of -8.7% and negative PAT growth of -8.2%.

4. Oasis Insurance Plc: in its Q1 2012 result recorded positive turnover growth of +12.2% and positive PAT growth of +24.6%.

5. Omatek Ventures Plc: in its Audited 2011 result recorded negative turnover growth of -66.7% and negative PAT growth of -477.5%.

As usual, Financial Services sector led the market transaction volume today with 694.67 million units valued at N5.44 billion (US$36.26 million) exchanged in 3,453 deals as against 598.01 million units valued at N3.57 billion (US$24.39 million) exchanged in 2,469 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UBA, FIRSTBANK, DIAMONDBNK, GUARANTY and ACESS Plc and the total volume of 557.14 million units valued at N4.35 billion traded in five stocks accounted for 74.64% of the entire market volume and their value represented 71.67% of the market’s value.

Transaction volume on the exchange moved up by +5.60% to close at 746.41 million units exchanged in 5,132 deals as against an upbeat by +22.96% recorded in the previous trading to close at 706.86 million units exchanged in 4,234 deals.

Also, market value appreciated by +24.39% to close at N6.07 billion (US$40.46 million) as against appreciation by +4.19% recorded in the previous trading session to close at N4.88 billion (US$32.52 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 694.67 million units of shares traded in 3,453 trades within the sector, followed by Consumer Goods sector to come second on the chart with 16.96 million units traded in 755 trades while Oil & Gas sector recorded 12.78 million units in 415 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 55.12% contribution to market turnover, followed by Large Cap stocks with 36.13% while Small Cap stocks stake 8.75% 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 23 traded stocks. Similarly, CONOIL, GLAXOSMITH and UNITYBNK led 61 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with one loser and two unchanged prices as against one gainer to one unchanged price recorded in the previous session. Livestock Feeds Plc closed with -3.03% loss after today’s trading session.

The Conglomerates sector closed with two losers as against two gainers to one unchanged price recorded in the previous session. Transcorp Plc closed with -1.79% loss after today’s trading session.

The Construction/Real Estate sector closed with no price movement as against one gainer to one loser recorded in the previous session.

The Consumer Goods sector closed with five gainers to one loser as against seven gainers to seven unchanged prices recorded in previous session. International Breweries Plc moved northwards by +4.99% after today’s trading session.

The Financial Services sector closed with nine gainers to six losers as against eleven gainers to four losers recorded in the previous session. Diamond Bank Plc moved up by +5.00% while GTAssure Plc moved down by -4.38% loss after today’s trading session.

The Healthcare sector closed with two losers to three unchanged prices compared to three losers and four unchanged prices recorded in previous session.

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

The Industrial Goods sector closed with one gainer to one loser as against five gainers to three losers recorded in previous session.

The Natural Resources sector closed with no price movement as against one loser to one unchanged price recorded in previous session. All stocks in the sector closed flat after today’s trading session.

The Oil & Gas sector closed with three gainers to five unchanged prices as against four gainers to two unchanged prices recorded in previous session.

The Services sector closed with three gainers to two losers as against one gainer to four losers recorded in the previous session.

Further analysis on Acquiring Banks since transaction date showed that the share price of Access Bank Plc has recorded 41.41% gain, followed by FCMB with 41.03% while Union Bank Plc leads the chart with 118.66% gain. However, Sterling Bank recorded -2.36% loss while ETI closed positive with +0.69% gain recorded. See the tracking table below.

Acquiring Banks