210612 Equity Market slides by -0.76% as the bears re-surface

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210612 Equity Market slides by -0.76% as the bears re-surface

Market activities closed with the bears after two sessions of positive stance due to renewed selling activities witnessed in some sectors across the main board amid increased market turnover while market breadth closed depressed as against previous outlook.

Nevertheless, the key benchmark indices resumed southwards movement as sentiments turned red, taking hits majorly from Medium CAP stock which was particularly driven by TRANSCORP while Large CAP stocks also contributed to the outlook recorded today due to renewed sell pressure witnessed in Financial Services and Consumer Goods sectors.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N51.90 billion as market sentiments turned negative. 104 equities were traded today as against previous 118 with more activities recorded in Financial Services, ICT, Services, Oil & Gas, Consumer Goods, Healthcare, Industrial Goods, Agriculture, Construction/Real Estate and Conglomerates sectors.

Today, four out of five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips resumed downtrend by -0.95%, NSE Insurance closed with +1.61% gains while NSE Oil & Gas maintaining downtrend by -0.29%, NSE banking records -2.10% loss while NSE Food also records -0.47% loss.

At the close of trading session, the NSE All-Share Index dips by -0.76% to close at 21,348.11 as against an upbeat by +2.03% recorded in the previous session to close at 21,510.70. In the same vein, market capitalization depreciated by N51.90 billion (US$345.91 million) to close at N6.81 trillion (US$45.41billion) as against appreciation by N136.82 billion (US$911.85 million) recorded in preceding session to close at N6.86 trillion (US$45.76billion).

The number of gainers at the close of trading session closed lower at 20 as against 29 recorded in the previous session while decliners closed higher at twenty-two (22) as against eighteen (18) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their forecasts

1. ABC Transport Plc Q3 2012 forecast: Turnover N1.642b Expenses (N1.162b) Depreciation (N255.245m) Finance Charges (N65.8811m) Profit before Tax N158.459m Taxation (N42.784m) Profit after Tax N115.675m

2. Unity Bank Plc Q4 2012 forecast: Gross Earnings N12.589b Interest Income N9.594b Interest Expenses (N3.218b) Net Revenue from Funds N6.376b Other Income N2.995b Net Operating Income N9.372b Operating Expenses (N6.503b) Profit before Tax N2.869b Taxation (N946.747m) Profit after Tax N1.922b

3. DN Meyer Plc Q3 2012 forecast: Net Turnover N592.453m Cost of Sales (N369.140m) Gross Profit N223.314m Marketing & Admin Expenses (N145.702m) Other Income N733,000 Profit before Interest & Tax N78.344m Finance Charges (N27.209m) Profit before Tax N51.135m Taxation (N1.185m) Profit after Tax N49.950m

4. Vitafoam Plc Q3 2012 forecast: Turnover N15.621b Cost of Sales (N10.726b) Gross Profit N4.896b Profit before Tax N1.171b Taxation (N374.785m) Profit after Tax N796.420m

As usual, Financial Services sector led the market transaction volume today with 149.82 million units valued at N908.00 million (US$6.05 million) exchanged in 2,154 deals as against 127.58 million units valued at N844.39 million (US5.62 million) exchanged in 2,355 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of DIAMONDBNK, FIRSTBANK, ZENITHBANK, UBA and GUARANTY Plc and the total volume of 110.28 million units valued at 766.40 million traded in five stocks accounted for 45.99% of the entire market volume and their value represented 54.43% of the market’s value.

Transaction volume on the exchange moved up by +45.23% to close at 239.78 million units exchanged in 3,793 deals as against a decline by -29.02% recorded in the previous trading to close at 165.11 million units exchanged in 3,692 deals.

Also, market value appreciated by +18.54% to close at N1.40 billion (US9.38 million) as against depreciation by -18.33% recorded in the previous trading session to close at N1.18 billion (US$7.91 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 149.82 million units of shares traded in 2,154 trades within the sector, followed by ICT sector to come second on the chart with 28.49 million units traded in 29 trades while Services sector recorded 24.54 million units in 115 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 42.53% contribution to market turnover, followed by Small Cap stocks with 37.45% while Large Cap stocks stake 20.03% to come last on the chart.

Among the Large cap stocks, DANGCEM, NB and NESTLE 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 74 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 loser as against two losers recorded in the previous session. Transcorp Plc closed with -4.88% losses 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 five losers as against four gainers to three losers recorded in previous session.

The Financial Services sector closed with six gainers to ten losers as against fourteen gainers to three losers recorded in the previous session. Custodian & Allied Insurance Plc moved up by +4.67% while Wapic Insurance Plc moved down by -494% loss after today’s trading session.

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

The ICT sector closed with no price movement as against any price movement recorded in previous session.

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

The Services sector closed with three gainers 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 +22.22% gains with FCMB recording -20.26% losses while Union Bank Plc leads the chart with +91.39% gains. However, Sterling Bank Plc recorded -10.24% losses while ETI also closed negative with -10.80% loss recorded. See the tracking table below.

Acquiring Banks