310512 Nigerian Stock Market sustains downtrend as bearish sentiments persist.

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310512 Nigerian Stock Market sustains downtrend as bearish sentiments persist.

Today, unprofitable transactions continued to permeate the Nigerian bourse as the bears further exerted their grip on the market for the third session in a row due to unrelenting sell pressure witnessed across the main board while the NSE Index looks set to dip below 22,000 psychological line.

Nevertheless, the key benchmark indices maintained downtrend as sentiments remained red, taking hits majorly from Large CAP stock which was particularly driven by Zenith Bank while Medium CAP stocks also contributed to the outlook recorded today due to continuous sell pressure witnessed in Conglomerates, Consumer Goods, Financial services and Oil & Gas sectors.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N33.34billion as market sentiments remained negative. 114 equities were traded today as against previous 97 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Services, Oil & Gas, Industrial Goods, ICT, Services, Healthcare, Construction/Real Estate and Agriculture 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 -0.59%, NSE Insurance resumed northwards movement by +0.85% while NSE Oil & Gas closed negative by -0.13% with NSE banking recording -1.45% loss while NSE Food also recorded -0.14% loss.

At the close of trading session, the NSE All-Share Index dips by -0.47% to close at 22,066.40 as against a decline by -0.04% recorded in the previous session to close at 22,170.95. In the same vein, market capitalization depreciated by N33.34 billion (US$222.21 million) to close at N7.03 trillion (US$46.89billion) as against depreciation by N2.89 billion (US$19.26 million) recorded in preceding session to close at N7.07 trillion (US$47.12billion).

The number of gainers at the close of trading session closed lower at 17 as against 20 recorded in the previous session while decliners closed higher at twenty-four (24) as against sixteen (16) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following company presented its result

1. Courtville Business solution Plc: in its Q1 2012 result recorded positive turnover growth of +37.3% and positive PAT growth of +17.6%.

As usual, Financial Services sector led the market transaction volume today with 167.50 million units valued at N1.00 billion (US$6.66 million) exchanged in 2,002 deals as against 255.85 million units valued at N2.51 billion (US16.74 million) exchanged in 2,314 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UNITYKAP, FIRSTBANK, UBA, ETI and GUARANTY TRUST BANK Plc and the total volume of 104.25 million units valued at N756.73 million traded in five stocks accounted for 31.70% of the entire market volume and their value represented 33.66% of the market’s value.

Transaction volume on the exchange moved down by -9.42% to close at 328.92 million units exchanged in 3,664 deals as against an upbeat by +68.30% recorded in the previous trading to close at 363.14 million units exchanged in 3,612 deals.

Also, market value depreciated by -30.85% to close at N2.24 billion (US$14.98 million) as against appreciation by +115.11% recorded in the previous trading session to close at N3.25 billion (US$21.66 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 167.50 million units of shares traded in 2,002 trades within the sector, followed Conglomerates sector to come second on the chart with 105.18 million units traded in 163 trades while Consumer Goods sector recorded 29.92 million units in 655 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 56.78% contribution to market turnover, followed by Small Cap stocks with 26.47% while Large Cap stocks stake 16.75% 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 24 traded stocks. Similarly, CONOIL, GLAXOSMITH and UNITYBNK led 83 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with no price movement as against one gainer to two losers recorded in the previous session.

The Conglomerates sector closed with two gainers to one loser as against one gainer recorded in the previous session. Transcorp Plc closed with +4.08% gains after today’s trading session.

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

The Consumer Goods sector closed with three gainers to six losers as against four gainers to two losers recorded in previous session. International Breweries Plc moved northwards by +4.10% while NASCON Plc moved southwards by -4.95% after today’s trading session.

The Financial Services sector closed with five gainers to eleven losers as against six gainers to eight losers recorded in the previous session. GTAssure Plc moved up by +4.49% while FCMB Plc moved down by -4.79% loss after today’s trading session.

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

The ICT sector closed with one loser as against one gainer recorded in the previous session.

The Industrial Goods sector closed with one gainer to one loser as against two 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.

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

The Services sector closed with two gainers to one loser as against one gainer 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 35.15% gain with FCMB recording -3.08% loss while Union Bank Plc leads the chart with 81.82% gain. However, Sterling Bank Plc recorded -14.17% losses while ETI also closed negative with -0.28% loss recorded. See the tracking table below.

Acquiring Banks