210512: Equity Market dips by -0.32% as speculative trading persists

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210512: Equity Market dips by -0.32% as speculative trading persists

As investors return from the weekend, equity market sustained downwards movement for the third session in a row to open the first trading day of the week pessimistic due to continuous speculative trading as envisaged in our Sentiments Analysis Report while market breadth closed depressed as against previous position.

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

In the same vein, the market capitalization of 187 first-tier equities depreciated by N22.280billion as market sentiments remained negative. 89 equities were traded today as against previous 83 with more activities recorded in Financial Services, Consumer Goods, Oil & Gas, Conglomerates, Industrial Goods, ICT, Services, Agriculture, Healthcare, Construction/Real Estate and Natural Resources sectors.

Today, four out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips maintained downtrend by -0.13%, NSE Insurance maintained uptrend by +0.67% while NSE Oil & Gas closed negative by -1.55% with NSE banking recording -0.01% marginal loss while NSE Food also recorded -0.75% loss.

At the close of trading session, the NSE All-Share Index dips by -0.32% to close at 22,309.62 as against a decline by -0.61% recorded in the previous session to close at 22,381.11. In the same vein, market capitalization depreciated by N22.80 billion (US$151.91 million) to close at N7.11 trillion (US$47.41billion) as against appreciation by N32.60 billion (US$217.28 million) recorded in preceding session to close at N7.18 trillion (US$47.87billion).

The number of gainers at the close of trading session closed lower at 18 as against 20 recorded in the previous session while decliners also closed lower at twenty (20) as against twenty-five (25) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following company presented its result

1. Oando Plc: in its Audited 2011 result recorded positive turnover growth of 54.81% and negative PAT growth of -76.03%.

As usual, Financial Services sector led the market transaction volume today with 145.21 million units valued at N958.77 billion (US$6.38 million) exchanged in 2,180 deals as against 226.86 million units valued at N1.63 billion (US$10.88 million) exchanged in 2,198 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of GOLDINSURE, UBA, ZENITHBANK, GUARANTY and FIRSTBANK Plc and the total volume of 101.35 million units valued at N777.38 billion traded in five stocks accounted for 52.90% of the entire market volume and their value represented 34.05% of the market’s value.

Transaction volume on the exchange moved down by -32.01% to close at 191.58 million units exchanged in 4,019 deals as against a decline by -50.02% recorded in the previous trading to close at 281.78 million units exchanged in 3,987 deals.

Also, market value appreciated by +4.05% to close at N2.28 billion (US$15.21 million) as against depreciation by -20.05% recorded in the previous trading session to close at N2.19 billion (US$14.62 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 145.21 million units of shares traded in 2,180 trades within the sector, followed by Consumer Goods sector to come second on the chart with 14.06 million units traded in 904 trades while Oil & Gas sector recorded 9.86 million units in 289 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 41.08% contribution to market turnover, followed by Small Cap stocks with 33.32% while Large Cap stocks stake 25.60% 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, TRANSCORP, GLAXOSMITH and UAC-PROP led 59 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with one gainer to two losers as against one loser recorded in the previous session.

The Conglomerates sector closed with one gainer as against two gainers to one loser recorded in the previous session. Transcorp Plc closed with +4.11% gains after today’s trading session.

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

The Consumer Goods sector closed with four gainers to three losers as against one gainer to seven losers recorded in previous session. Dangote Sugar Refinery Plc moved northwards by +5.00% after today’s trading session.

The Financial Services sector closed with seven gainers to nine losers as against eight gainers to nine losers recorded in the previous session. UBA Plc moved up by +4.25% while Union Bank Plc moved down by -4.89% loss after today’s trading session.

The Healthcare sector closed with one loser compared to on gainer to one loser 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 two gainers to one loser as against four gainers 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 one gainer to three losers as against one gainer to one loser recorded in previous session.

The Services sector closed with two gainers to one loser 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 38.79% gain, followed by FCMB with 10.26% while Union Bank Plc leads the chart with 86.12% gain. However, Sterling Bank recorded -3.15% loss while ETI also closed negative with -2.31% loss recorded. See the tracking table below.

Acquiring Banks