230512 Nigerian Stock Market dips by -0.12%; resumes southwards movement

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230512 Nigerian Stock Market dips by -0.12%; resumes southwards movement

Equity Market resumed downtrend after closing green in the previous session as sell pressure outweighed bargain hunting across board while market breadth closed depressed amid increased volume turnover.

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

In the same vein, the market capitalization of 187 first-tier equities depreciated by N8.750billion as market sentiments turned negative. 102 equities were traded today as against previous 96 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Oil & Gas, Industrial Goods, Services, Healthcare, Agriculture, Construction/Real Estate, 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 -0.004%, NSE Insurance maintained uptrend by +0.45% while NSE Oil & Gas closed negative by -1.09% with NSE banking recording +0.44% gain while NSE Food recorded -0.26% loss.

At the close of trading session, the NSE All-Share Index dips by -0.12% to close at 22,314.67 as against an upbeat by +0.15% recorded in the previous session to close at 22,342.13. In the same vein, market capitalization depreciated by N8.75 billion (US$58.36 million) to close at N7.11 trillion (US$47.42billion) as against appreciation by N10.36 billion (US$69.10 million) recorded in preceding session to close at N7.12 trillion (US$47.48billion).

The number of gainers at the close of trading session closed higher at 15 as against 14 recorded in the previous session while decliners also closed higher at twenty-six (26) as against twenty-three (23) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following company presented its result

1. Oando Plc: in its Q1 2012 result recorded positive turnover growth of +37.94% and negative PAT growth of -5.38%.

As usual, Financial Services sector led the market transaction volume today with 263.14 million units valued at N2.40 billion (US$16.01 million) exchanged in 3,079 deals as against 170.96 million units valued at N1.50 billion (US10.05 million) exchanged in 2,223 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of GUARANTY, FIRSTBANK, UBA, ZENITHBANK, and DIAMONDBNK Plc and the total volume of 194.25 million units valued at N2.18 billion traded in five stocks accounted for 56.68% of the entire market volume and their value represented 66.57% of the market’s value.

Transaction volume on the exchange moved up by +4.04% to close at 342.71 million units exchanged in 4,647 deals as against an upbeat by +71.94% recorded in the previous trading to close at 329.40 million units exchanged in 3,947 deals.

Also, market value depreciated by -11.65% to close at N3.28 billion (US$21.91 million) as against appreciation by +63.01% recorded in the previous trading session to close at N3.72 billion (US$24.80 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 263.14 million units of shares traded in 3,079 trades within the sector, followed by Conglomerates sector to come second on the chart with 39.79 million units traded in 138 trades while Consumer Goods sector recorded 23.76 million units in 755 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 Large Cap stocks according to new market segmentation topped today's market activity with 43.01% contribution to market turnover, followed by Medium Cap stocks with 30.86% while Small Cap stocks stake 26.13% 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 ASHAKACEM led 73 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

The Conglomerates sector closed with two gainers as against one gainer to one loser recorded in the previous session. Transcorp Plc closed with +3.80% gains after today’s trading session.

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

The Consumer Goods sector closed with two losers as against two gainers to five losers recorded in previous session. NASCON Plc moved southwards by -4.89% after today’s trading session.

The Financial Services sector closed with four gainers to eleven losers as against eight gainers to five losers recorded in the previous session. Continental Re-insurance Plc moved up by +4.11% while Union Bank Plc moved down by -4.59% loss after today’s trading session.

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

The Services sector closed with four gainers to one loser as against one gainer to four 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 38.38% gain, followed by FCMB with 12.31% while Union Bank Plc leads the chart with 68.90% gain. However, Sterling Bank recorded -5.51% loss while ETI also closed negative with -1.46% loss recorded. See the tracking table below.

Acquiring Banks