220512: NSE ASI retraces by +0.15% to close green; CBN retains MPR at 12%

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220512: NSE ASI retraces by +0.15% to close green; CBN retains MPR at 12%

The bulls returned to the bourse in style as the key market indicator closed northwards after three sessions of negative outlook due to renewed and weak bargain activities witnessed in some sectors on the main board while the CBN kept its monetary policy rate on hold at 12% for the fourth time in a row citing the need to balance inflationary concerns with slowing growth as the basis for retention.

Nevertheless, the key benchmark indices resumed uptrend as sentiments turned green, taking supports majorly from Large CAP stocks which was particularly driven by FIRSTBANK.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N10.360billion as market sentiments turned positive. 96 equities were traded today as against previous 89 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Oil & Gas, Industrial Goods, Healthcare, ICT, Services, Agriculture, Construction/Real Estate and Natural Resources sectors.

Today, four out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips retraced by +0.25%, NSE Insurance maintained uptrend by +0.16% while NSE Oil & Gas closed negative by -1.14% with NSE banking recording +0.51% gain while NSE Food also recorded +0.15% gain.

At the close of trading session, the NSE All-Share Index inches up by +0.15% to close at 22,342.13 as against a decline by -0.32% recorded in the previous session to close at 22,309.62. In the same vein, market capitalization appreciated by N10.36 billion (US$69.10 million) to close at N7.12 trillion (US$47.48billion) as against depreciation by N22.80 billion (US$151.91 million) recorded in preceding session to close at N7.11 trillion (US$47.41billion).

The number of gainers at the close of trading session closed lower at 14 as against 18 recorded in the previous session while decliners closed higher at twenty-three (23) as against twenty (20) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. Transcorp Plc: in its Q1 2012 result recorded negative turnover growth of -22.4% and positive PAT growth of +52.9%.

2. UTC Nigeria Plc: in its Q1 2012 result recorded negative turnover growth of -26.1% and negative PAT growth of -64.9%.

3. Dangote Flour Mills Plc: in its Audited 2011 result recorded negative turnover growth of -2.0% and negative PAT growth of -75.1%.

As usual, Financial Services sector led the market transaction volume today with 170.96 million units valued at N1.50 billion (US$10.05 million) exchanged in 2,223 deals as against 145.21 million units valued at N958.77 million (US60.38 million) exchanged in 2,180 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UBA, GUARANTY, FIRSTBANK, ZENITHBANK, and ACCESS Plc and the total volume of 143.58 million units valued at N1.43 billion traded in five stocks accounted for 43.59% of the entire market volume and their value represented 38.56% of the market’s value.

Transaction volume on the exchange moved UP by +71.94% to close at 329.40 million units exchanged in 3,947 deals as against a decline by -32.01% recorded in the previous trading to close at 191.58 million units exchanged in 4,019 deals.

Also, market value appreciated by +63.01% to close at N3.72 billion (US$24.80 million) as against appreciation by +4.05% recorded in the previous trading session to close at N2.28 billion (US$15.21 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 170.961 million units of shares traded in 2,223 trades within the sector, followed by Conglomerates sector to come second on the chart with 84.66 million units traded in 265 trades while Consumer Goods sector recorded 25.39 million units in 763 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 Small Cap stocks according to new market segmentation topped today's market activity with 39.93% contribution to market turnover, followed by Medium Cap stocks with 33.03% while Large Cap stocks stake 27.04% 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 UNITYBNK led 66 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

The Conglomerates sector closed with one gainer to one loser as against one gainer recorded in the previous session. Transcorp Plc closed with +3.95% gains after today’s trading session.

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

The Consumer Goods sector closed with two gainers to five losers as against four gainers to three losers recorded in previous session. Honeywell Flour Mills Plc moved northwards by +3.90% after today’s trading session.

The Financial Services sector closed with eight gainers to five losers as against seven gainers to nine losers recorded in the previous session. FCMB Plc moved up by +4.42% while Union Bank Plc moved down by -4.88% loss after today’s trading session.

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

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

The Industrial Goods sector closed with two losers 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.

The Oil & Gas sector closed with one gainer to one loser as against one gainer to three losers recorded in previous session.

The Services sector closed with one gainer to four 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 39.39% gain, followed by FCMB with 15.13% while Union Bank Plc leads the chart with 77.03% gain. However, Sterling Bank recorded -5.51% loss while ETI closed positive with +0.17% gain recorded. See the tracking table below.

Acquiring Banks