060612 NSE ASI dips by -1.15% as Dangote Cement Plc records -5.00% loss

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060612 NSE ASI dips by -1.15% as Dangote Cement Plc records -5.00% loss

Today, Nigerian Stock Market witnessed intense selling activities across the main board to sustain southwards movement for the seventh trading session amid low volume turnover and Naira votes while the -5.00% loss recorded in the share price of Dangote Cement Plc, market leader by capitalisation, also contributed to the negative outlook despite the positive market breadth witnessed after trading session.

Nevertheless, the key benchmark indices sustained downtrend as sentiments remained negative, taking hits majorly from Medium CAP stock which was particularly driven by Fidelity Bank Plc.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N79.24billion as market sentiments remained negative. 101 equities were traded today as against previous 112 with more activities recorded in Financial Services, Conglomerates, Oil & Gas, Consumer Goods, Healthcare, Industrial Goods, Services and Agriculture sectors.

Today, three out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips maintained downtrend by -0.69%, NSE Insurance closed with -1.13% loss while NSE Oil & Gas closed flat with NSE banking recording +1.51% gain while NSE Food also recorded -0.50% loss.

At the close of trading session, the NSE All-Share Index dips by -1.15% to close at 21,383.61 as against a decline by -0.70% recorded in the previous session to close at 21,632.11. In the same vein, market capitalization depreciated by N79.24 billion (US$528.15 million) to close at N6.81 trillion (US$45.44billion) as against depreciation by N48.87 billion (US$325.73 million) recorded in preceding session to close at N6.89 trillion (US$45.97billion).

The number of gainers at the close of trading session closed lower at 22 as against 11 recorded in the previous session while decliners closed higher at fifteen (15) as against twenty-nine (29) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following company presented its result.

1. Continental Re-Insurance Plc: in its Q1 2012 result recorded positive turnover growth of +25.5% and positive PAT growth of +34.9%.

Also, the following companies presented their forecasts

2. UAC of Nig Plc in its Q3 2012 forecast: Turnover N48.313b Cost of Sales (Nil) Profit before Tax N6.586b Taxation (N2.075b) Profit after Tax N4.611b

3. Nestle Nig Plc in its Q3 2012 forecast: Turnover N28.850b Cost of Sales (Nil) Profit before Tax N4.700b Taxation (N686m) Profit after Tax N4.014b

As usual, Financial Services sector led the market transaction volume today with 170.31 million units valued at N909.65 billion (US$6.06 million) exchanged in 2,032 deals as against 171.37 million units valued at N1.08 billion (US7.20 million) exchanged in 2,373 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of EQUITYASUR, FIRSTBANK, GUARANTY, SKYEBANK and FIDELITY BANK Plc and the total volume of 120.77 million units valued at N667.72 million traded in five stocks accounted for 58.72% of the entire market volume and their value represented 53.45% of the market’s value.

Transaction volume on the exchange moved down by -9.95% to close at 205.68 million units exchanged in 3,331 deals as against an upbeat by -18.39% recorded in the previous trading to close at 228.41 million units exchanged in 4,016 deals.

Also, market value depreciated by -20.84% to close at N1.24 billion (US$8.32 million) as against appreciation by -26.34% recorded in the previous trading session to close at N1.57 billion (US$10.51 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 170.31 million units of shares traded in 2,032 trades within the sector, followed Conglomerates sector to come second on the chart with 13.18 million units traded in 95 trades while Oil & Gas sector recorded 8.74 million units in 265 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 41.04% contribution to market turnover, followed by Medium Cap stocks with 31.38% while Large Cap stocks stake 27.57% 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 ACCESS, UBA and TRANSCORP dominated Medium Cap of 23 traded stocks. Similarly, ASHAKACEM, GLAXOSMITH and ETRANZACT led 71 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

The Conglomerates sector closed with one gainer as against one gainer to one loser recorded in the previous session. Transcorp Plc closed with +4.72% gains after today’s trading session.

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

The Consumer Goods sector closed with one gainer to three losers as against four losers recorded in previous session.

The Financial Services sector closed with seven gainers to nine losers as against three gainers to thirteen losers recorded in the previous session. Zenith Bank Plc moved up by +4.48% while GTAssure Bank Plc moved down by -4.52% loss after today’s trading session.

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

The Services sector closed with four gainers to one loser as against three 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 30.10% gain with FCMB recording -8.46% losses while Union Bank Plc leads the chart with 54.55% gain. However, Sterling Bank Plc recorded -7.87% losses while ETI also closed negative with -10.03% loss recorded. See the tracking table below.