180612 NSE ASI dips by -0.74% as Dangote Cement Plc records -4.00% losses

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180612 NSE ASI dips by -0.74% as Dangote Cement Plc records -4.00% losses

As investors return from the weekend, the bears continue to dominate market activities as tradings closed pessimistic for the third consecutive session to open the first trading day of the week negative while the -4.00% loss recorded in the share price of Dangote Cement Plc, market leader by capitalization, also contributed to the outlook witnessed today despite the positive market breadth observed.

Nevertheless, the key benchmark indices sustained downtrend as sentiments remained negative, taking hits majorly from Large CAP stock which was particularly driven by DANGCEM while Small CAP stocks also contributed to the outlook recorded today due to renewed selling activities witnessed in Agriculture, Conglomerates, Financial Services, Healthcare Industrial Goods and Oil & Gas sectors.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N49.86 billion as market sentiments remained negative. 102 equities were traded today as against previous 95 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Agriculture, Services, Healthcare, Industrial Goods, Oil & Gas, Construction/Real Estate, ICT and Natural Resources sectors.

Today, three out of five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips resumed downtrend by -0.40%, NSE Insurance closed with -0.17% loss while NSE Oil & Gas maintained downtrend with -0.98% loss with NSE banking recording +0.10% gain while NSE Food also recorded +0.68% gain.

At the close of trading session, the NSE All-Share Index dips by -0.74% to close at 21,028.39 as against a decline by -0.32% recorded in the previous session to close at 21,184.58. In the same vein, market capitalization depreciated by N49.86 billion (US$332.29 million) to close at N6.71 trillion (US$44.73billion) as against depreciation by N21.49 billion (US$143.24 million) recorded in preceding session to close at N6.76 trillion (US$45.07billion).

The number of gainers at the close of trading session closed higher at 24 as against 17 recorded in the previous session while decliners closed lower at nineteen (19) as against twenty-one (21) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following company presented its result

1. Premier Paints Plc in its Audited 2011 result recorded positive turnover growth of +10% and positive PAT growth of +39.2%.

Also, the following companies presented their forecasts

1. Learn Africa Plc Q3 2012 forecast: Revenue N2.628b Cost of Sales (N1.524b) Gross Profit N1.104b Other Operating Income N5.00m Expenses (N986.972m) Operating (Loss) Profit N121.848m Finance Income N21.460m Profit before Tax N143.308m Taxation (N45.859m) Profit after Tax N97.449m

2. Equity Assurance Medical Plc Q3 2012 forecast: Gross Premium N2.975b Accretion to Unexpired Risk (N148.750m) Gross Premium Earned N2.826b Outward Reinsurance Premium (N386.750m) Net Premium Earned N2.440b Commission Received N96.687m Expenses (N1.146b) Net Operating Income N1.659b Operating Expenses, Diminution in value and Provision for Bad debts (N1.183b) Profit before Tax N433.588m Taxation (N121.320m) Profit after Tax N312.267m Accretion to Contingency Reserve (N89.250m) Retained Profit for the Period N223.017m

As usual, Financial Services sector led the market transaction volume today with 106.05 million units valued at N600.68 million (US$4.00 million) exchanged in 1,847 deals as against 1.89 billion units valued at N1.86 billion (US12.40 million) exchanged in 2,003 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of WAPIC, FIRSTBANK, UBA, ZENITH and DIAMOND BANK Plc and the total volume of 73.09 million units valued at N392.41 million traded in five stocks accounted for 46.93% of the entire market volume and their value represented 34.32% of the market’s value.

Transaction volume on the exchange moved down by -92.29% to close at 155.77 million units exchanged in 3,432 deals as against an upbeat by +742.22% recorded in the previous trading to close at 2.02 billion units exchanged in 3,676 deals.

Also, market value depreciated by -59.29% to close at N1.14 billion (US7.61 million) as against depreciation by +71.16% recorded in the previous trading session to close at N2.80 billion (US$18.71 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 106.05 million units of shares traded in 1,847 trades within the sector, followed by Conglomerates sector to come second on the chart with 22.30 million units traded in 217 trades while Consumer Goods sector recorded 6.56 million units in 723 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 47.05% contribution to market turnover, followed by Small Cap stocks with 32.51% while Large Cap stocks stake 20.44% 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 23 traded stocks. Similarly, ASHAKACEM, GLAXOSMITH and HONYFLOUR 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 one gainer to two losers as against one gainer recorded in the previous session. Transcorp Plc closed with -4.93% losses after today’s trading session.

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

The Consumer Goods sector closed with five gainers to one loser as against three gainers to three losers recorded in previous session.

The Financial Services sector closed with nine gainers to six losers as against seven gainers to seven losers recorded in the previous session. Union Bank Plc moved up by +4.90% while Law Union & Rock Insurance Plc moved down by -5.00% loss after today’s trading session.

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

The Services sector closed with four gainers 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 +24.24% gains with FCMB recording -18.46% losses while Union Bank Plc leads the chart with +74.16% gains. However, Sterling Bank Plc recorded -13.39% losses while ETI also closed negative with -13.62% loss recorded. See the tracking table below.

Acquiring Banks