040612 NSE ASI slides by -0.81% as downtrend continues.

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040612 NSE ASI slides by -0.81% as downtrend continues.

As investors return from the weekend, trading activities on the Nigerian bourse closed downbeat for the fifth uninterrupted session to open the week negative as sell pressure significantly outweighed bargain activities amid low volume turnover while market YTD performance also plunged further to close at +5.09%.

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

In the same vein, the market capitalization of 187 first-tier equities depreciated by N56.92billion as market sentiments remained negative. 91 equities were traded today as against previous 110 with more activities recorded in Financial Services, Conglomerates, ICT, Consumer Goods, Oil & Gas, Industrial Goods, Healthcare, Services, Services 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 -1.10%, NSE Insurance closed flat while NSE Oil & Gas closed negative by -0.50% with NSE banking recording -1.56% loss while NSE Food also recorded -1.15% loss.

At the close of trading session, the NSE All-Share Index dips by -0.81% to close at 21,785.37 as against a decline by -0.46% recorded in the previous session to close at 21,963.87. In the same vein, market capitalization depreciated by N56.92 billion (US$379.37 million) to close at N6.94 trillion (US$46.30billion) as against depreciation by N32.69 billion (US$217.91 million) recorded in preceding session to close at N7.00 trillion (US$46.68billion).

The number of gainers at the close of trading session closed lower at 15 as against 16 recorded in the previous session while decliners also closed lower at twenty-two (22) as against twenty-seven (27) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. Etranzact International Plc: in its Q1 2012 result recorded positive turnover growth of +105.1% and positive PAT growth of +34.7%.

2. Regency Alliance Insurance Plc: in its Q1 2012 result recorded positive turnover growth of +54.3% and positive PAT growth of +4.6%.

As usual, Financial Services sector led the market transaction volume today with 168.37 million units valued at N1.55 billion (US$10.38 million) exchanged in 2,160 deals as against 174.13 million units valued at N1.39 billion (US9.28 million) exchanged in 2,053 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of FIRSTBANK, UBA, ZENITH GUARANTY and ACCESS BANK Plc and the total volume of 135.04 million units valued at N1.47 billion traded in five stocks accounted for 48.25% of the entire market volume and their value represented 68.96% of the market’s value.

Transaction volume on the exchange moved down by -28.78% to close at 279.90 million units exchanged in 3,866 deals as against an upbeat by +19.49% recorded in the previous trading to close at 393.03 million units exchanged in 3,868 deals.

Also, market value depreciated by -12.50% to close at N2.14 billion (US$14.27 million) as against appreciation by +8.91% recorded in the previous trading session to close at N2.44 billion (US$16.31 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 168.37 million units of shares traded in 2,160 trades within the sector, followed Conglomerates sector to come second on the chart with 53.54 million units traded in 389 trades while ICT sector recorded 26.33 million units in 31 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 41.87% contribution to market turnover, followed by Medium Cap stocks with 35.64% while Small Cap stocks stake 22.49% 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, ASHAKACEM, GLAXOSMITH and UNITYBNK led 61 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 loser recorded in the previous session.

The Conglomerates sector closed with one gainer as against two losers recorded in the previous session. Transcorp Plc closed with +4.12% gains after today’s trading session.

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

The Consumer Goods sector closed with two gainers to four losers as against three gainers to five losers recorded in previous session. NASCON Plc moved northwards by +4.29% while HONYFLOUR Plc moved southwards by -4.29% after today’s trading session.

The Financial Services sector closed with two gainers to ten losers as against five gainers to ten losers recorded in the previous session. Fidelity Bank Plc moved up by +2.36% while Diamond Bank Plc moved down by -4.94% loss after today’s trading session.

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

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

The Industrial Goods sector closed with two gainers to four losers as against one gainer to three 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 three gainers to one loser as against one gainer to three 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 32.32% gain with FCMB recording -8.21% loss while Union Bank Plc leads the chart with 70.81% gain. However, Sterling Bank Plc recorded -7.09% losses while ETI also closed negative with -6.60% loss recorded. See the tracking table below.

Acquiring Banks