130612 NSE ASI inches up by +0.28% as rally continues

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130612 NSE ASI inches up by +0.28% as rally continues

The bulls continue to exert their dominance on the Nigerian bourse as they further consolidate on previous gains with the market indicators closing northwards for the third successive session amid improved market breadth.

Nevertheless, the key benchmark indices sustained uptrend as sentiments remained positive, taking supports majorly from Large CAP stock which was particularly driven by ZENITH while Medium CAP stocks also contributed to the outlook recorded today due to renewed bargain activities witnessed in Financial Services and Industrial Goods sectors.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N18.86 billion as market sentiments remained positive. 96 equities were traded today as against previous 104 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Agriculture, ICT, Services, Industrial Goods, Oil & Gas, Healthcare, Construction/Real Estate and Natural Resources sectors.

Today, two out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips maintained uptrend by +0.30%, NSE Insurance closed with -0.71% loss while NSE Oil & Gas maintained downtrend with -0.29% loss with NSE banking recording the highest gain by +1.07% loss while NSE Food also recorded -0.19% loss.

At the close of trading session, the NSE All-Share Index inches up by +0.28% to close at 21,298.62 as against an upbeat by +1.34% recorded in the previous session to close at 21,239.52. In the same vein, market capitalization appreciated by N18.86 billion (US$125.75 million) to close at N6.79 trillion (US$45.31billion) as against appreciation by N17.93 billion (US$119.52 million) recorded in preceding session to close at N6.78 trillion (US$45.18billion).

The number of gainers at the close of trading session closed higher at 25 as against 16 recorded in the previous session while decliners closed lower at nineteen (19) as against twenty-three (23) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following company presented its result

1. NASCON Plc: in its Q1 2012 result recorded positive turnover growth of +51.7% and positive PAT growth of +72.3%.

Also, the following companies presented their forecasts

2. Access Bank Plc Q3 2012 forecast: Gross Earnings N54.782b Profit before Taxation N15.266b Forecast Taxation (N3.358b) Profit after Taxation N11.907b

3. Consolidated Hallmark Insurance Plc Q3 2012 forecast: Gross Premium N4.110b Net Premium Earned N3.397b Net Claims Incurred (N1.562b) Investment Income N170.250m Net Operating Income N2.005b Management Expenses (N832.500m) Provision for bad and Doubtful Debts (N369.900m) Profit before Exceptional Items N802.554m Exceptional Items (N50.252m) Profit before Tax N752.301m Forecast Taxation (N240.736m) Profit after Taxation N511.564m

4. Eterna Plc Q3 2012 forecast: Turnover N56.413b Cost of Sales (N54.156b) Profit before Taxation N1.264b Forecast Taxation (N404.581m) Profit after Taxation N859.734m

5. GTAssure Plc Q3 2012 forecast: Gross Premium N9.525b Net Premium Earned N3.667b Net Claims Incurred (N1.216) Underwriting Profit N2.450b Investment & Other Income N1.266b Management Expenses (N2.200b) Profit before Taxation N1.516b Forecast Taxation (N275.406m) Profit after Taxation N1.241b

6. MRS Oil Plc Q3 2012 forecast: Turnover N76.804b Cost of Sales (N71.095b) Operating Expenses (N4.139b) Profit before Taxation N1.570b Forecast Taxation (N502m) Profit after Taxation N1.068b

7. Pharma-Deko Plc Q3 2012 forecast: Turnover N454m Cost of Sales (N329m) Underwriting Profit N2.450b Investment & Other Income N1.266b Management Expenses (N2.200b) Profit before Taxation N10m

8. Regency Alliance Insurance Plc Q3 2012 forecast Gross Premium N133.154m Outward Reinsurance (N286.034m) Commission Earned N14.302m Net Claims (N488.017m) Investment & Other Income N19.621m Management Expenses (N236.859m) Profit before Taxation N323.167m Forecast Taxation (N19.390m) Profit after Taxation N303.777m

9. Resort Savings & Loans Plc Q3 2012 forecast Gross Earnings N960.736m Profit before Taxation N236.486m Forecast Taxation (N70.946m) Profit after Taxation N165.540m

As usual, Financial Services sector led the market transaction volume today with 131.40 million units valued at N625.57 million (US$4.16 million) exchanged in 1,760 deals as against 92.34 million units valued at N628.42 million (US4.18 million) exchanged in 1,870 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of SOVRENINS, ACCESS, FIRSTBANK, FIDELITY and ZENITH BANK Plc and the total volume of 92.08 million units valued at N480.44 million traded in five stocks accounted for 46.62% of the entire market volume and their value represented 46.58% of the market’s value.

Transaction volume on the exchange moved up by +41.77% to close at 197.51 million units exchanged in 2,889 deals as against a decline by -13.60% recorded in the previous trading to close at 139.32 million units exchanged in 3,339 deals.

Also, market value depreciated by -19.78% to close at N1.03 billion (US6.87 million) as against appreciation by +5.26% recorded in the previous trading session to close at N1.28 billion (US$8.56 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 131.40 million units of shares traded in 1,760 trades within the sector, followed by Conglomerates sector to come second on the chart with 23.20 million units traded in 116 trades while Consumer Goods sector recorded 14.65 million units in 466 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 47.28% contribution to market turnover, followed by Small Cap stocks with 37.60% while Large Cap stocks stake 15.11% 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 UBA, IBTC and WAPCO dominated Medium Cap of 22 traded stocks. Similarly, ASHAKACEM, GLAXOSMITH and UNITYBNK led 67 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with two losers as against any price movement recorded in the previous session.

The Conglomerates sector closed with two gainers to one loser as against two gainers recorded in the previous session. Transcorp Plc closed with +4.51% gains after today’s trading session.

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

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

The Financial Services sector closed with eleven gainers to five losers as against four gainers to ten losers recorded in the previous session. Fidelity Bank Plc moved up by +5.00% while GTAssure Plc moved down by -5.00% loss after today’s trading session.

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

The Services sector closed with two gainers to two losers as against three gainers 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 23.23% gain with FCMB recording -18.72% losses while Union Bank Plc leads the chart with +51.20% gains. However, Sterling Bank Plc recorded -14.96% losses while ETI also closed negative with -5.74% loss recorded. See the tracking table below.

Acquiring Banks