140512: Equity Market opens the week pessimistic; dips by -0.31%

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140512: Equity Market opens the week pessimistic; dips by -0.31%

Today, the bears re-surfaced on the Nigerian bourse to open the first trading day of week negative as profit taking dragged market indicator back to the negative territory after a session of positive outlook while trading week in Europe opened with shares heading downward as financial stocks are the biggest fallers.

Also, China's central bank cut the bank's reserve requirement ratio (RRR) by 50 basis points to 20.0% on Saturday, freeing an estimated 400 billion yuan for lending to head off the risk of a sudden slowdown in the world's second-largest economy sending oil, copper and gold down. U.S. stock index futures pointed to a lower open on Wall St.

Nevertheless, the key benchmark indices resumed downtrend as sentiments turned red, taking hits majorly from Large CAP stock which was particularly driven by NESTLE.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N22.31 billion as market sentiments turned negative. 88 equities were traded today as against previous 85 with more activities recorded in Financial Services, Consumer Goods, Services, Conglomerates, Healthcare, Oil & Gas, Agriculture, Industrial Goods, Construction/Real Estate and Natural Resources and ICT 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 -0.18%, NSE Insurance maintained southwards movement by -1.61% while NSE Oil & Gas closed flat with NSE banking recording the only gain with +0.15% while NSE Food recorded -0.36% loss.

At the close of trading session, the NSE All-Share Index dips by -0.31% to close at 22,552.46 as against an upbeat by +0.49% recorded in the previous session to close at 22,622.44. In the same vein, market capitalization depreciated by N22.31billion (US$148.74 million) to close at N7.19 trillion (US$47.93billion) as against appreciation by N35.44 billion (US$236.22 million) recorded in preceding session to close at N7.21trillion (US$48.08billion).

The number of gainers at the close of trading session closed higher at 24 as against 22 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 companies presented their results

1. Chams Plc: in its Q1 2012 result recorded negative turnover growth of -80% and negative PAT growth of -197.5%.

2. Multiverse Resource Plc: in its Q1 2012 result positive turnover growth of -32.1% and negative PAT growth of -60.4%.

As usual, Financial Services sector led the market transaction volume today with 235.89 million units valued at N1.58 billion (US$10.56 million) exchanged in 2,474 deals as against 211.81 million units valued at N2.31 billion (US$15.39 million) exchanged in 2,177 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UBA, GUARANTY, ZENITHBANK, FIRSTBANK and FIRSTBANK Plc and the total volume of 198.33 million units valued at N1.49 billion traded in five stocks accounted for 70.18% of the entire market volume and their value represented 63.76% of the market’s value.

Transaction volume on the exchange moved up by +5.28% to close at 292.92 million units exchanged in 3,960 deals as against a decline by -16.29% recorded in the previous trading to close at 278.23 million units exchanged in 3,748 deals.

Also, market value depreciated by -18.07% to close at N2.35 billion (US$15.69 million) as against appreciation by +20.71% recorded in the previous trading session to close at N2.87 billion (US$19.15 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 235.89 million units of shares traded in 2,474 trades within the sector, followed by Consumer Goods sector to come second on the chart with 26.44 million units traded in 726 trades while Services sector recorded 9.23 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 Medium Cap stocks according to new market segmentation topped today's market activity with 58.95% contribution to market turnover, followed by Large Cap stocks with 23.90% while Small Cap stocks stake 17.16% 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, UBA and ACCESS dominated Medium Cap of 23 traded stocks. Similarly, CONOIL, GLAXOSMITH and OKOMUOIL led 58 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with three gainers as against one gainer to one unchanged price recorded in the previous session. Presco Plc closed with +4.98% gains after today’s trading session.

The Conglomerates sector closed with two gainers as against one gainer to one loser recorded in the previous session. Transcorp Plc closed with +3.39% gain after today’s trading session.

The Construction/Real Estate sector closed with two gainers as against two gainers recorded in the previous session.

The Consumer Goods sector closed with five gainers to four losers as against four gainers to two losers recorded in previous session. National Salt Co. of Nig Plc moved northwards by +5.00% after today’s trading session.

The Financial Services sector closed with four gainers to ten losers as against eight gainers to seven losers recorded in the previous session. UBA Plc moved up by +4.99% while Custodian & Allied Insurance Plc moved down by -5.00% loss after today’s trading session.

The Healthcare sector closed with one gainer to two losers compared to two losers to two unchanged prices recorded in previous session.

The ICT sector closed with no price movement as against no price movement recorded in the previous session.

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

The Services sector closed with two gainers to two losers as against two 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 38.79% gain, followed by FCMB with 34.62% while Union Bank Plc leads the chart with 127.27% gain. However, Sterling Bank recorded -1.57% loss while ETI also closed negative with -1.46% loss recorded. See the tracking table below.

Acquiring Banks