190712: All Share index retraces by -0.77%, after hitting overbought region

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190712: All Share index retraces by -0.77%, after hitting overbought region

Thursday, July 19, 2012 / Proshare Research

REFERENCES:
Sentiment Analysis Report – W/E July 13, 2012
…..considering the market RSI at its top, market may experience short term retracement soon as we have observed slight weakness in market optimism level (frail bargain appetite observed in the week)- the strong gain recorded in few big caps saved the week as subtle profit taking is brewing.

Mid-Week: Market consolidates with 12.28% YTD gains as value investors increase stake:
….Meanwhile, market regained its uptrend momentum to stay healthy as revealed by market RSI, indicating increased bargain activities in the market terrain. Though, price correction may set in soon as market trades within overbought range.

Today, equity market closed in the red zone to halt the six-day rally as the bears re-surfaced with renewed sell pressure witnessed across the main board while the -2.16% losses recorded in the share price of Dangote Cement Plc, market leader by capitalisation, also contributed to the outlook witnessed

Nevertheless, the key benchmark indices retraced as sentiments turned negative, taking hits majorly from Medium CAP stock which was particularly driven by FCMB while Large CAP stocks also contributed to the outlook recorded today due to renewed selling activities witnessed in Industrial Goods and Financial Services sectors.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N57.17 billion as market sentiments turned pessimistic. 96 equities were traded today as against previous 102 with more activities recorded in Financial Services, Consumer Goods, Conglomerates, Oil & Gas, Industrial Goods, Construction/Real Estate, Services, Healthcare, Agriculture, Natural Resources and ICT sectors.

Today, three NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips retraced by -0.73%, NSE Insurance closed with +0.06% gains while NSE Oil & Gas closed negative with -0.90% loss, NSE banking records -0.89% loss while NSE Food also records +0.41% gains.

At the close of trading session, the NSE All-Share Index dips by -0.77% to close at 23,098.30 as against an upbeat by +1.03% recorded in the previous session to close at 23,277.30. In the same vein, market capitalization appreciated by N57.17 billion (US$381.01 million) to close at N7.37 trillion (US$49.14billion) as against appreciation by N75.98 billion (US$506.40 million) recorded in preceding session to close at N7.43 trillion (US$49.52billion).

The number of gainers at the close of trading session closed lower at 21 as against 31 recorded in the previous session while decliners closed higher at twenty-six (26) as against thirteen (13) losers recorded in the previous trading day – suggesting a negative market breadth.

As usual, Financial Services sector led the market transaction volume today with 350.39 million units valued at N1.71 billion (US$11.41 million) exchanged in 2,938 deals as against 199.22 million units valued at N1.32 billion (US8.85 million) exchanged in 2,511 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of AIICO, FIRSTBANK, UBA, STERLNBANK and FIRSTBANK Plc and the total volume of 278.41 million units valued at N1.13 billion traded in five stocks accounted for 67.58% of the entire market volume and their value represented 35.77% of the market’s value.

Transaction volume on the exchange moved down by +58.71% to close at 411.97 million units exchanged in 4,690 deals as against an decline by -37.32% recorded in the previous trading to close at 259.58 million units exchanged in 4,182 deals.

Also, market value appreciated by +43.82% to close at N3.17 billion (US21.16 million) as against appreciation by -28.20% recorded in the previous trading session to close at N2.20 billion (US$14.71 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 350.39 million units of shares traded in 2,938 trades within the sector, followed by Consumer Goods sector to come second on the chart with 27.82 million units traded in 22947 trades while Conglomerates sector recorded 20.09 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 Small Cap stocks according to new market segmentation topped today's market activity with 48.22% contribution to market turnover, followed by Medium Cap stocks with 28.83% while Large Cap stocks stake 22.95% 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 ACCESS, UBA and WAPCO dominated Medium Cap of 24 traded stocks. Similarly, ASHAKACEM, CONOIL and UNITYBNK led 65 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with two gainers to one loser as against one gainer recorded in the previous session.

The Conglomerates sector closed with one gainer to one loser as against three gainers recorded in the previous session. Transcorp Plc closed negative with -4.17% 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 five gainers to two losers as against ten gainers to one loser recorded in previous session.

The Financial Services sector closed with SEVEN gainers to ten losers as against ten gainers to six losers recorded in the previous session. Royal Exchange Plc moved up by +3.70% while FCMB Plc moved down by -4.60% loss after today’s trading session.

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

The ICT sector closed with no price movement compared with no price movement recorded in previous session.

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

The Services sector closed with one gainer to four losers as against one gainer 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 +59.19% gains with FCMB recording -12.08% losses while Union Bank Plc leads the chart with +94.26% gains. However, Sterling Bank Plc recorded -6.30% losses while ETI also closed negative with -12.08% loss recorded. See the tracking table below.

Acquiring Banks