110712 NSE ASI resumes northwards movement; inches up by +0.60%.

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110712 NSE ASI resumes northwards movement; inches up by +0.60%.

The bulls re-surfaced on the Nigerian bourse to dominate market activities just as bargain activities significantly outweighed sell pressure amid increased market turnover and negative market breadth while market sentiments remain relatively weak in short term.

Nevertheless, the key benchmark indices resumed uptrend as sentiments turned positive, 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 bargain activities witnessed in Conglomerates, Financial Services and Oil & Gas sectors.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N42.53 billion as market sentiments turned optimistic. 111 equities were traded today as against previous 113 with more activities recorded in Financial Services, Oil & Gas, Industrial Goods, Consumer Goods, Agriculture, Conglomerates, Services, Healthcare, ICT, Construction/Real Estate and Natural Resources sectors.

Today, three NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips resumed uptrend by +0.74%, NSE Insurance closed with -0.11% losses while NSE Oil & Gas also closed negative with -0.06% marginal loss, NSE banking records -1.76% gains while NSE Food also records +0.22% gains.

At the close of trading session, the NSE All-Share Index inches up by +0.60% to close at 22,253.71 as against a decline by -0.32% recorded in the previous session to close at 22,120.47. In the same vein, market capitalization appreciated by N42.53 billion (US$283.48 million) to close at N7.10 trillion (US$47.34billion) as against depreciation by N22.56 billion (US$150.36 million) recorded in preceding session to close at N7.06 trillion (US$47.06billion).

The number of gainers at the close of trading session closed lower at 20 as against 22 recorded in the previous session while decliners closed higher at twenty-three (23) as against twenty-one (21) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. NewGold Issuer Ltd in its Audited Mar ’12 result recorded positive turnover growth of +18.8% and positive PAT growth of +26.4%.

2. Diamond Bank Plc in its Q2 ’12 result recorded positive turnover growth of +48.5% and positive PAT growth of +408.1%.

3. Unity Kapital Assurance Plc in its Audited 2011 result recorded positive turnover growth of +99.5% and positive PAT growth of +317.6%.

As usual, Financial Services sector led the market transaction volume today with 304.13 million units valued at N1.67 billion (US$11.13 million) exchanged in 2,139 deals as against 196.97 million units valued at N1.12 billion (US7.15 million) exchanged in 2,232 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of DIAMONDBNK, AIICO, ACCESS, UBA, GUARANTY and FIRSTBANK Plc and the total volume of 215.24 million units valued at N1.17 billion traded in five stocks accounted for 54.80% of the entire market volume and their value represented 38.57% of the market’s value.

Transaction volume on the exchange moved up by +69.01% to close at 392.80 million units exchanged in 3,906 deals as against an upbeat by +69.88% recorded in the previous trading to close at 232.40 million units exchanged in 3,794 deals.

Also, market value appreciated by +65.95% to close at N3.04 billion (US20.32 million) as against appreciation by +10.20% recorded in the previous trading session to close at N1.83 billion (US$12.24 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 304.13 million units of shares traded in 2,139 trades within the sector, followed by Oil & Gas sector to come second on the chart with 47.52 million units traded in 305 trades while Industrial Goods sector recorded 11.73 million units in 192 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 51.30% contribution to market turnover, followed by Small Cap stocks with 28.04% while Large Cap stocks stake 20.66% 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, ACCESS and IBTC dominated Medium Cap of 23 traded stocks. Similarly, ASHAKACEM, GLAXOSMITH and ETRANZACT led 81 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with one gainer as against one gainer recorded in the previous session.

The Conglomerates sector closed with one gainer to one loser as against one gainer to two losers recorded in the previous session. Transcorp Plc closed positive with +1.01% gains after today’s trading session.

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

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

The Financial Services sector closed with ten gainers to six losers as against nine gainers to eight losers recorded in the previous session. Zenith Bank Plc moved up by +5.00% while Continental Re-Insurance Plc moved down by -4.23% loss after today’s trading session.

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

The ICT sector closed with one loser as against any price movement recorded in previous session.

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

The Services sector closed with three 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 +55.56% gains with FCMB recording -15.38% losses while Union Bank Plc leads the chart with +105.26% gains. However, Sterling Bank Plc recorded -4.72% losses while ETI also closed negative with -12.17% loss recorded. See the tracking table below.

Acquiring Banks