200612 NSE ASI firms up by +2.03% as Exchange lists FORTISMFB by Introduction

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200612 NSE ASI firms up by +2.03% as Exchange lists FORTISMFB by Introduction

Trading activities on the Nigerian Stock Exchange closed positive to maintain uptrend for the second session in a row as bargain activities significantly outweighed sell pressure amid low volume turnover and Naira votes while NSE today list by introduction 1,630,091,000 Ordinary Shares of 50 kobo each of Fortis Microfinance Bank at N5.00 per share.

Nevertheless, the key benchmark indices maintained northwards as sentiments remained green, taking supports majorly from Large CAP stock which was particularly driven by ZENITHBANK while Medium CAP stocks also contributed to the outlook recorded today due to continuous bargain activities witnessed in Financial Services and Consumer Goods sectors.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N136.82 billion as market sentiments remained positive. 118 equities were traded today as against previous 111 with more activities recorded in Financial Services, Consumer Goods, Industrial Goods, Healthcare, Services, Oil & Gas, Agriculture, Conglomerates, Construction/Real Estate, ICT and Natural Resources sectors.

Today, three out of five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips maintained uptrend by +1.75%, NSE Insurance closed with -0.38% loss while NSE Oil & Gas maintained downtrend with -0.07% loss with NSE banking recording +3.28% gain while NSE Food also recorded +0.01% marginal gain.

At the close of trading session, the NSE All-Share Index inches by +2.03% to close at 21,510.70 as against a decline by -0.32% recorded in the previous session to close at 21,082.10. In the same vein, market capitalization appreciated by N136.82 billion (US$911.85 million) to close at N6.86 trillion (US$45.76billion) as against appreciation by N17.14 billion (US$114.28 million) recorded in preceding session to close at N6.73 trillion (US$44.85billion).

The number of gainers at the close of trading session closed higher at 29 as against 23 recorded in the previous session while decliners closed lower at eighteen (18) as against twenty-five (25) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. Union Ventures & Petroleum Plc in its 2011 Audited result recorded positive turnover growth of +3925.5% and negative PAT growth of -1561.5%.

2. C & I leasing Plc in its 2012 Audited result recorded positive turnover growth of +21.4% and positive PAT growth of +184.8%.

Also, the following companies presented their forecasts

3. Airline Services & Logistics Plc Q3 2012 forecast: Turnover N1.131b Cost of Sales (N429.670m) Gross Profit N701.041m Operating Cost (N575.857m) Profit before Tax N125.184m Taxation (Nil) Profit after Tax N125.184m Earning Per Share (k) 0.20 Annualized Earnings Per Share (k) 0.79

4. Aso Savings & Loans Plc Q3 2012 forecast: Gross Earnings N6.646b Cost of Sales (N1.908b) Net Income N4.738b Operating Expenses (N4.240b) Profit before Tax N498.146m Taxation (N149.444m) Profit after Tax N348.702mAccretion to Contingency Reserve (N89.250m) Retained Profit for the Period N223.017m

5. Okomu Oil Palm Plc Q3 2012 forecast: Turnover N2.176b Cost of Sales (N1.430b) Profit before Taxation N745.133m Forecast Taxation (N78.065m) Profit after Taxation N667.068m

6. Courtville Business Solutions Oil Palm Plc Q3 2012 forecast: Total Income N441.816m Direct Costs (N147.102m) Operating Expenses (N147.499m) Interest & Similar Charges (N40.435m) Profit before Tax N106.780m Taxation (N17.085m) Profit after Tax N89.695m

7. UTC Nigeria Plc Q3 2012 forecast: Total Income N1.003b Cost of Sales (N631.247m) Admin, Selling & Distribution Expenses (N260.711m) Profit from Operations N110.642m Finance Expenses (N27.300m) Profit for the Year N83.342m Other Comprehensive Income N2.799m Total Comprehensive Income N86.141m Basic Earnings per share (k) 7

As usual, Financial Services sector led the market transaction volume today with 127.58 million units valued at N844.39 million (US$5.62 million) exchanged in 2,355 deals as against 187.52 million units valued at N853.26 million (US5.68 million) exchanged in 2,312 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of GUARANTY, DIAMONDBNK, FIRSTBANK, UBA and ZENITHBANK Plc and the total volume of 73.09 million units valued at N392.41 million traded in five stocks accounted for 44.27% of the entire market volume and their value represented 33.04% of the market’s value.

Transaction volume on the exchange moved down by -29.02% to close at 165.11 million units exchanged in 3,691 deals as against an upbeat by +49.33% recorded in the previous trading to close at 232.61 million units exchanged in 3,432 deals.

Also, market value depreciated by -18.33% to close at N1.18 billion (US7.91 million) as against appreciation by +27.21% recorded in the previous trading session to close at N1.45 billion (US$9.69 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 127.58 million units of shares traded in 2,355 trades within the sector, followed by Consumer Goods sector to come second on the chart with 8.71 million units traded in 592 trades while Industrial Goods sector recorded 6.06 million units in 175 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 41.38% contribution to market turnover, followed by Large Cap stocks with 28.46% while Small Cap stocks stake 26.14% 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 UNITYBNK led 87 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 gainer recorded in the previous session.

The Conglomerates sector closed with two losers as against three losers recorded in the previous session. Transcorp Plc closed with -4.65% losses after today’s trading session.

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

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

The Financial Services sector closed with fourteen gainers to three losers as against nine gainers to seven losers recorded in the previous session. Zenith Bank Plc moved up by +4.82% while Goldlink Insurance Plc moved down by -5.00% loss after today’s trading session.

The Healthcare sector closed with two gainers to two losers compared to two gainers to three losers recorded in previous session.

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

The Industrial Goods sector closed with five gainers to three losers as against four 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 two losers as against two gainers to two losers recorded in previous session.

The Services sector closed with three gainers to one loser as against three gainers recorded in the previous session.

Further analysis on Acquiring Banks since transaction date showed that the share price of Access Bank Plc has recorded +27.88% gains with FCMB recording -20.51% losses while Union Bank Plc leads the chart with +87.56% gains. However, Sterling Bank Plc recorded -11.02% losses while ETI also closed negative with -8.31% loss recorded. See the tracking table below.

Acquiring Banks