150512: Nigerian Stock Market slides by -0.58%; maintains southward movement

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150512: Nigerian Stock Market slides by -0.58%; maintains southward movement

Trading activities on the Nigerian bourse closed downbeat for the second session in a row due to intense selling activities witnessed across the main amid increased volume turnover and Naira votes while market breadth closed flat and depressing as against previous outlook.

It was reported in the news today that Daar Communications Plc, on Monday, lost in its bid to ‘address’ the payment of the N7.5bn judgment sum handed against it in favour of Fidelity Bank Plc. The implications for shareholders are inherent in some facts on our website about this investment which will guide a reasonable conclusion on the stock.

Also, Nigeria's inflation rate rose to 12.9 percent in April, year on year, from 12.1 percent in March, as data from the National Bureau of Statistics revealed on Tuesday.

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

In the same vein, the market capitalization of 187 first-tier equities depreciated by N41.46 billion as market sentiments remained negative. 107 equities were traded today as against previous 88 with more activities recorded in Financial Services, Consumer Goods, Services, ICT, Conglomerates, Oil & Gas, Natural Resources, Industrial Goods and Healthcare sectors.

Today, two out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips maintained downtrend by -0.71%, NSE Insurance retraced by +0.49% while NSE Oil & Gas closed flat with NSE banking recording the highest loss with -2.26% while NSE Food recorded +0.21% gain.

At the close of trading session, the NSE All-Share Index dips by -0.58% to close at 22,422.43 as against a decline by -0.31% recorded in the previous session to close at 22,552.46. In the same vein, market capitalization depreciated by N41.46 billion (US$276.35 million) to close at N7.15 trillion (US$47.65billion) as against depreciation by N22.31 billion (US$148.74 million) recorded in preceding session to close at N7.19 trillion (US$47.93billion).

The number of gainers at the close of trading session closed lower at 20 as against 24 recorded in the previous session while decliners closed higher at twenty (20) as against fifteen (19) losers recorded in the previous trading day – suggesting a flat market breadth.

Today, the following companies presented their results

1. GlaxoSmithKline Plc: in its Q1 2012 result recorded positive turnover growth of 28% and negative PAT growth of -11.6%.

2. Learn Africa Plc: in its Q1 2012 result positive turnover growth of +58.8% and positive PAT growth of +148.7%.

As usual, Financial Services sector led the market transaction volume today with 302.08 million units valued at N2.76 billion (US$18.41 million) exchanged in 2,535 deals as against 235.89 million units valued at N1.58 billion (US$10.56 million) exchanged in 2,474 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of GUARANTY, UBA, FIRSTBANK, ZENITHBANK and ACCESS Plc and the total volume of 227.28 million units valued at N2.57 billion traded in five stocks accounted for 50.60% of the entire market volume and their value represented 62.37% of the market’s value.

Transaction volume on the exchange moved up by +53.36% to close at 449.21 million units exchanged in 4,426 deals as against an upbeat by +5.28% recorded in the previous trading to close at 292.92 million units exchanged in 3,960 deals.

Also, market value appreciated by +75.43% to close at N4.13 billion (US$27.53 million) as against depreciation by -18.07% recorded in the previous trading session to close at N2.35 billion (US$15.69 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 302.08 million units of shares traded in 2,535 trades within the sector, followed by Consumer Goods sector to come second on the chart with 83.19 million units traded in 946 trades while Services sector recorded 16.52 million units in 176 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 41.02% contribution to market turnover, followed by Large Cap stocks with 35.38% while Small Cap stocks stake 23.59% 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 IBTC dominated Medium Cap of 23 traded stocks. Similarly, ETRANZACT, GLAXOSMITH and HONYFLOUR led 76 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with one gainer as against three gainers recorded in the previous session. Presco Plc closed with +4.95% gains after today’s trading session.

The Conglomerates sector closed with one gainer as against two gainers recorded in the previous session. Transcorp Plc closed with +4.92% gains after today’s trading session.

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

The Consumer Goods sector closed with five gainers to one loser as against five gainers to four losers recorded in previous session. Dangote Flour Mills Plc moved northwards by +4.91% after today’s trading session.

The Financial Services sector closed with five gainers to eleven losers as against four gainers to ten losers recorded in the previous session. Law Union & Rock Plc moved up by +4.00% while Skye Bank Plc moved down by -4.86% loss after today’s trading session.

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

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

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

The Services sector closed with three losers to nine unchanged prices as against two 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 34.75% gain, followed by FCMB with 28.21% while Union Bank Plc leads the chart with 116.27% gain. However, Sterling Bank recorded -5.51% loss while ETI closed positive with +0.69% gain recorded. See the tracking table below.

Acquiring Banks