110612 NSE ASI inches up by +1.34% to halt bearish trend
Category: Daily & Weekly Market Updates
The bulls resurfaced on the Nigerian bourse after nine consecutive session of negative position as bargain activities outweighed sell pressure amid improve breadth while the positive transactions witnessed in the share price of Dangote Cement Plc also contributed to the lifting of the key market indicator to the positive territory as ASI closed above 21,000 psychological lines.
Nevertheless, the key benchmark indices resumed uptrend as sentiments turned positive, taking supports majorly from Large CAP stock which was particularly driven by NB while Medium CAP stocks also contributed to the outlook recorded today due to renewed bargain activities witnessed in Conglomerates and Oil & Gas sectors.
In the same vein, the market capitalization of 187 first-tier equities appreciated by N96.22billion as market sentiments turned positive. 102equities were traded today as against previous 113 with more activities recorded in Financial Services, Conglomerates, Oil & Gas, Services, Healthcare, Industrial Goods, Consumer Goods, 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 +1.35%, NSE Insurance closed with -0.91% loss while NSE Oil & Gas closed with +0.39% gain NSE banking recording +0.15% gain while NSE Food also recorded +1.53% gain.
At the close of trading session, the NSE All-Share Index inches up by +1.34% to close at 21,183.34 as against a decline by -1.00% recorded in the previous session to close at 20,902.95. In the same vein, market capitalization appreciated by N96.22 billion (US$641.29 million) to close at N6.76 trillion (US$45.06billion) as against depreciation by N67.52 billion (US$450.01 million) recorded in preceding session to close at N6.66 trillion (US$44.42billion).
The number of gainers at the close of trading session closed higher at 20 as against 18 recorded in the previous session while decliners closed lower at eighteen (18) as against thirty-one (31) losers recorded in the previous trading day – suggesting a positive market breadth.
Today, the following company presented its result.
1. Airline Services & Logistics Plc: in its Q1 2012 result recorded negative turnover growth of -1% and positive PAT growth of +21.1%.
Also, the following companies presented their forecasts
2. Tantalizer Plc Q3 2012 forecast: Sales N1.270b Net Sales N1.209b Cost of Sales (N637.614m) Gross Profit N572.217m Admin Expenses (N580.509m) Other Operating Income N36.295m Profit before Interest N28.003m Total Interest Expense (N4.839m) Operating Profit/(Loss) after Interest N23.163m Taxation Provision (N19.363m) Profit after Tax N3.800m
3. Total Nigeria Plc Q3 2012 forecast: Turnover N54.466b Cost of Sales (N47.537b) Gross Profit N6.929b Admin, Selling & Distribution Expenses (N4.358b) Other Operating Income N165.864m Interest Payable & Similar Charges (N225.837m) Profit before Taxation N2.552b Forecast Taxation (N707.867m) Profit after Taxation N1.804b
4. Stanbic IBTC Bank Plc Q3 2012 forecast: Total Income N20.598b Operating Expense (N14.013b) Credit Impairment Charges (N2.696b) Profit before Tax N3.890b Forecast Taxation (N846.261m) Profit after Tax N3.043b Profit attributable to: Non-Controlling Interest (N2.751b) Equity holders of the Parent (N267.560m) Profit after Taxation and Non- Controlling Interest (N3.043b)
5. Red Star Express Plc Q3 2012 forecast: Turn Over N2.888b Profit before Taxation N286.510m Taxation Provision (N85.953m) Profit after Tax N200.557m
6. Julius Berger Plc Q3 2012 forecast: Turnover N125.541b Profit before Tax N7.030b Taxation (N3.037b) Profit after Tax N3.993b
7. Diamond Bank Plc Q3 2012 forecast: Gross Earnings N27.315b Interest Expenses (N3.634b) Operating Expense & Loan Provision (N19.424b) Profit before Tax N4.257b Taxation (N1.149b) Profit after Tax N3.107b
8. Cadbury Plc Q3 2012 forecast: Turnover N9.873b Cost of Sales (N6.700b) Profit before Interest N1.070b Taxation Provision (N335m) Profit after Tax N735m
As usual, Financial Services sector led the market transaction volume today with 103.59 million units valued at N659.60 million (US$4.39 million) exchanged in 1,965 deals as against 187.78 million units valued at N1.50 billion (US10.04 million) exchanged in 2,172 deals recorded in previous session.
The volume recorded in the sector was driven by transaction in the shares of FIRSTBANK, FCMB,ACCESS, DIAMOND and FIDELITY BANK Plc and the total volume of 66.40 million units valued at N413.47 million traded in five stocks accounted for 41.17% of the entire market volume and their value represented 33.85% of the market’s value.
Transaction volume on the exchange moved down by -32.29% to close at 161.26 million units exchanged in 3,462 deals as against an upbeat by +24.83% recorded in the previous trading to close at 238.17 million units exchanged in 3,708 deals.
Also, market value depreciated by -41.94% to close at N1.22 billion (US8.14 million) as against appreciation by +17.71% recorded in the previous trading session to close at N2.10 billion (US$14.02 million).
Sectoral Performance (According to New Market Segmentation)
Financial Services sector led the market sectoral performance with 103.59 million units of shares traded in 1,965 trades within the sector, followed by Conglomerates sector to come second on the chart with 14.00 million units traded in 131 trades while Oil & Gas sector recorded 13.21 million units in 328 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 47.79% contribution to market turnover, followed by Small Cap stocks with 27.68% while Large Cap stocks stake 24.54% 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 UACN, TRANSCORP and WAPCO dominated Medium Cap of 23 traded stocks. Similarly, ASHAKACEM, GLAXOSMITH and ETRANZACT led 72 traded stocks in the Small Cap category in that order. See table below
SECTORAL REVIEW The Agriculture sector closed with one gainer to one loser 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 +4.96% gains after today’s trading session.
The Construction/Real Estate sector closed with no price movement as against two losers recorded in the previous session.
The Consumer Goods sector closed with one gainer to one loser as against two gainers to six losers recorded in previous session.
The Financial Services sector closed with five gainers to six losers as against four gainers to thirteen losers recorded in the previous session. Law Union & Rock Plc moved up by +3.85% while Custodian & Allied Insurance Plc moved down by -4.97% loss after today’s trading session.
The Healthcare sector closed with two gainers to one loser compared to two gainers recorded in previous session.
The ICT sector closed with no price movement as against any price movement in the previous session.
The Industrial Goods sector closed with two gainers to six losers as against two gainers 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 two losers as against two gainers to one loser recorded in previous session.
The Services sector closed with three gainers to one loser as against two gainers 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 26.26% gain with FCMB recording -12.31% losseswhile Union Bank Plc leads the chart with +44.50% gains. However, Sterling Bank Plc recorded -13.39% losses while ETI also closed negative with -7.28% loss recorded. See the tracking table below.