100512: NSE ASI slides further as profiteering continues

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100512: NSE ASI slides further as profiteering continues

Today, Nigerian Stock Market maintained southwards movement for the second consecutive session as profit taking continues on the bourse amid low volume turnover and Naira Votes while Dangote plans to list his $11 billion cement company on the London stock exchange by Q3 2013.

Nevertheless, the key benchmark indices continued downtrend as sentiments remained red, taking hits majorly from Small CAP stock which was particularly driven by PORTPAINT while Large CAP stocks also contributed to the outlook recorded today due to continuous selling activities witnessed in Financial Services sector.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N7.14 billion as market sentiments remained negative. 85 equities were traded today as against previous 93 with more activities recorded in Financial Services, Consumer Goods, Conglomerates, Services, Healthcare, Oil & Gas, Industrial Goods, Agriculture, ICT, 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 maintained downtrend by -0.23%, NSE Insurance retraced to close northwards by +0.15% while NSE Oil & Gas recorded -0.02% marginal loss with NSE banking recording the highest loss with -0.84% while NSE Food recorded +0.29% gain.

At the close of trading session, the NSE All-Share Index dips by -0.10% to close at 22,511.30 as against an upbeat by +0.38% recorded in the previous session to close at 22,533.72. In the same vein, market capitalization depreciated by N7.14billion (US$47.65 million) to close at N7.17 trillion (US$47.84billion) as against appreciation by N27.10 billion (US$180.61 million) recorded in preceding session to close at N7.22trillion (US$48.15billion).

The number of gainers at the close of trading session closed lower at 19 as against 24 recorded in the previous session while decliners closed flat at twenty-three (23) as against twenty-three (23) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. Sterling Bank Plc: in its Q1 2012 result recorded positive turnover growth of +78.8% and positive PAT growth of +16.3%.

2. Dangote Sugar Refinery Plc: in its Q1 2012 result positive turnover growth of +24.1% and positive PAT growth of +101.1%.

3. Beco Petroleum Plc: in its Audited 2011 result recorded positive turnover growth of -3.4% and positive PAT growth of +46.7%.

Also, the following companies presented their forecasts

4. Dangote Cement Plc Q2 2012 forecast: Turnover N150.346b Cost of Sales (N63.082b) Admin, Selling & Distribution Expenses (N6.361b) Other Gains & Losses N599.668m Finance Income N618.055m Finance Charges (N4.669b) Net Finance Costs (N3.451b) Profit before Tax N77.450b Taxation N9.691m Profit after Tax N77.460b

5. Staco Insurance Plc Q2 2012 forecast: Turnover N4.694b Underwriting Profit N2.052b Profit before Tax N813.488m Taxation (N183.034m) Profit after Tax N630.454m

As usual, Financial Services sector led the market transaction volume today with 263.60 million units valued at N1.97 billion (US$13.14 million) exchanged in 2,592 deals as against 408.44 million units valued at N3.31 billion (US$22.09 million) exchanged in 2,925 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UBA, GUARANTY, FCMB, FIRSTBANK and ZENITHBANK Plc and the total volume of 205.55 million units valued at N1.76 billion traded in five stocks accounted for 61.85% of the entire market volume and their value represented 74.10% of the market’s value.

Transaction volume on the exchange moved down by -31.31% to close at 332.36 million units exchanged in 4,245 deals as against an upbeat by +20.22% recorded in the previous trading to close at 483.89 million units exchanged in 4,657 deals.

Also, market value depreciated by -37.71% to close at N2.38 billion (US$15.86 million) as against depreciation by -9.21% recorded in the previous trading session to close at N3.82 billion (US$25.47 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 263.60 million units of shares traded in 2,592 trades within the sector, followed by Consumer Goods sector to come second on the chart with 25.85 million units traded in 708 trades while Conglomerates sector recorded 12.60 million units in 98 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 53.49% contribution to market turnover, followed by Large Cap stocks with 27.17% while Small Cap stocks stake 19.34% 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 WAPCO, IBTC and ACCESS dominated Medium Cap of 23 traded stocks. Similarly, CONOIL, GLAXOSMITH and HONYFLOUR led 81 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 three unchanged prices recorded in the previous session. Presco Plc closed with +4.92% gains after today’s trading session.

The Conglomerates sector closed with two gainers as against two losers recorded in the previous session. Transcorp Plc closed with +3.64% 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 five gainers to one loser as against six gainers to two losers recorded in previous session. Dangote Flour Mills Plc moved northwards by +4.95% after today’s trading session.

The Financial Services sector closed with seven gainers to eight losers as against seven gainers to twelve losers recorded in the previous session. Goldlink Insurance Plc moved up by +3.64% while UBA Plc moved down by -4.97% loss after today’s trading session.

The Healthcare sector closed with one gainer to one loser compared to one gainer to three losers recorded in previous session.

The Information & Communication Technology sector closed with one loser as against one loser to two unchanged prices recorded in the previous session.

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

The Natural Resources sector closed with no price movement as against any 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 five unchanged prices as against three gainers to five unchanged prices recorded in previous session.

The Services sector closed with two gainers to three losers as against four gainers to one loser 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

Earnings Report for Banks