080512: Equity market resumes uptrend; ASI inches up by +0.38%

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080512: Equity market resumes uptrend; ASI inches up by +0.38%

Nigerian Stock Market resumed uptrend after a day of negative position just as bargain hunting permeate market activities across the main board while the positive transaction witnessed in the share price of Dangote Cement Plc, market leader by capitalization, also contributed to the lifting of the NSE Index further to positive territory.

Nevertheless, the key benchmark indices recommence uptrend as sentiments turned green, taking support majorly from Small CAP stock which was particularly driven by Presco while Large CAP stocks also contributed to the outlook recorded today due to selling activities witnessed in Financial Services, Industrial Goods and Consumer Goods sectors.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N27.10 billion as market sentiments turned positive. 85 equities were traded today as against previous 91 with more activities recorded in Financial Services, Conglomerates, Industrial Goods, Services, Oil & Gas, Healthcare, Agriculture, ICT, Construction/Real Estate and Natural Resources sectors.

Today, all five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips retraced by +0.26%, NSE Insurance also retraced to close northwards by +1.96% while NSE Oil & Gas recorded +0.54% gain with NSE banking recording +0.02% marginal gain while NSE Food also recorded +0.42% gain.

At the close of trading session, the NSE All-Share Index inches up +0.38% to close at 22,656.76 as against a decline by -0.42% recorded in the previous session to close at 22,571.78. In the same vein, market capitalization appreciated by N27.10billion (US$180.61 million) to close at N7.22trillion (US$48.15billion) as against depreciation by N30.04 billion (US$200.03 million) recorded in preceding session to close at N7.19trillion (US$47.97billion).

The number of gainers at the close of trading session closed higher at 27 as against 21 recorded in the previous session while decliners also closed higher at nineteen (19) as against fifteen (15) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following company presented its result

1. Total Nigeria Plc: in its Q1 2012 result recorded positive turnover growth of +24.9% and positive PBT growth of +16.9%.

As usual, Financial Services sector led the market transaction volume today with 330.43 million units valued at N3.09 billion (US$20.61 million) exchanged in 3,516 deals as against 694.67 million units valued at N5.44 billion (US$36.26 million) exchanged in 3,453 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of ZENITHBANK, FIRSTBANK, UBA, GUARANTY and DIAMONDBNK Plc and the total volume of 275.29 million units valued at N2.94 billion traded in five stocks accounted for 68.39% of the entire market volume and their value represented 69.95% of the market’s value.

Transaction volume on the exchange moved down by -46.08% to close at 402.50 million units exchanged in 5,275 deals as against an upbeat by +5.60% recorded in the previous trading to close at 746.41 million units exchanged in 5,132 deals.

Also, market value depreciated by -30.65% to close at N4.21 billion (US$28.06 million) as against appreciation by +24.39% recorded in the previous trading session to close at N6.07 billion (US$40.46 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 330.43 million units of shares traded in 3,516 trades within the sector, followed by Consumer Goods sector to come second on the chart with 28.42 million units traded in 703 trades while Conglomerates sector recorded 20.15 million units in 128 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 Large Cap stocks according to new market segmentation topped today's market activity with 47.26% contribution to market turnover, followed by Medium Cap stocks with 35.16% while Small Cap stocks stake 17.58% 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 HONYFLOUR led 55 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 loser to two unchanged prices recorded in the previous session. Okomu Oil Palm Plc closed with +5.00% gains after today’s trading session.

The Conglomerates sector closed with one gainer and one unchanged price as against two losers recorded in the previous session. Transcorp Plc closed with +1.82% gain after today’s trading session.

The Construction/Real Estate sector closed with no price movement as against any price movement recorded in the previous session.

The Consumer Goods sector closed with six gainers to three losers as against five gainers to one loser recorded in previous session. Dangote Flour Mills Plc moved northwards by +4.84% after today’s trading session.

The Financial Services sector closed with seven gainers to nine losers as against nine gainers to six losers recorded in the previous session. Sterling Bank Plc moved up by +4.84% while UBA Plc moved down by -4.96% loss after today’s trading session.

The Healthcare sector closed with one gainer to six unchanged prices compared to two losers and three 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 six gainers to one loser as against one gainer 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 two gainers to two losers as against three gainers to five unchanged prices recorded in previous session.

The Services sector closed with two gainers to three losers as against three gainers to two 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 38.38% gain, followed by FCMB with 34.62% while Union Bank Plc leads the chart with 115.31% gain. However, Sterling Bank recorded +2.36% gain while ETI also closed positive with +0.17% gain recorded. See the tracking table below.

Acquiring Banks