240712 Equity Market closes downbeat by -0.91%; CBN retains MPR at 12%

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240712 Equity Market closes downbeat by -0.91%; CBN retains MPR at 12%

Today, trading activities on the Nigerian bourse closed downbeat after a session of positive outlook with the negative transaction witnessed in the shares of Dangote Cement Plc contributing to the outlook recorded today despite impressive market breadth while Nigeria's central bank left its benchmark interest rate on hold at 12% as expected but took measures to tighten liquidity to support the weakening local naira currency.

Nevertheless, the key benchmark indices sustained uptrend as sentiments remained positive, taking supports majorly from Large CAP stocks which was particularly driven by FIRSTBANK while Medium CAP stocks also contributed to the outlook recorded today due to continuous bargain activities witnessed in Conglomerates, Consumer Goods, Industrial Goods and Oil & Gas sectors.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N67.40 billion as market sentiments turned negative. 99 equities were traded today as against previous 102 with more activities recorded in, Financial Services, Consumer Goods, Services, Oil & Gas, Conglomerates, Healthcare, Industrial Goods, Agriculture, Construction/Real Estate and ICT sectors.

Today, one NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips retraced by +0.60%, NSE Insurance closed with +0.35% gains while NSE Oil & Gas closed positive with +0.10% gains, NSE banking records +0.50% gains while NSE Food also records +0.06% marginal gains.

At the close of trading session, the NSE All-Share Index dips by -0.91% to close at 23,169.24 as against a decline by +1.24% recorded in the previous session to close at 23,381.05. In the same vein, market capitalization depreciated by N67.40 billion (US$449.20 million) to close at N7.37 trillion (US$49.13billion) as against appreciation by N90.93 billion (US$605.99 million) recorded in preceding session to close at N7.44 trillion (US$48.97billion).

The number of gainers at the close of trading session closed higher at 23 as against 16 recorded in the previous session while decliners closed lower at sixteen (16) as against twenty-four (24) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following company presented its result

1. First Bank Plc in its Q2 ’12 result recorded positive turnover growth of +25.65% and positive PAT growth of +124.59%.

As usual, Financial services sector led the market transaction volume today with 203.81 million units valued at N1.66 billion (US$11.07 million) exchanged in 2,459 deals as against 129.71 million units valued at N1.11 billion (US7.43million) exchanged in 2,115 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of FIRSTBANK, GUARANTY, STERLNBANK, ZENITHBANK and ACCESS Plc and the total volume of 139.62 million units valued at N1.50 billion traded in five stocks accounted for 55.71% of the entire market volume and their value represented 63.65% of the market’s value.

Transaction volume on the exchange moved down by -43.45% to close at 250.62 million units exchanged in 4,062 deals as against an upbeat by +59.48% recorded in the previous trading to close at 443.15 million units exchanged in 4,508 deals.

Also, market value appreciated by +10.04% to close at N2.36 billion (US15.73 million) as against appreciation by +2.59% recorded in the previous trading session to close at N2.14 billion (US$14.29 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 203.81 million units of shares traded in 2459 trades within the sector, followed by Consumer Goods sector to come second on the chart with 27.11 million units traded in 840 trades while Services sector recorded 7.53 million units in 109 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 Large Cap stocks according to new market segmentation topped today's market activity with 40.60% contribution to market turnover, followed by Medium Cap stocks with 33.66% while Large Cap stocks stake 25.74% 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 IBTC, UBA and ACCESS dominated Medium Cap of 24 traded stocks. Similarly, ASHAKACEM, CONOIL and UNITYBNK led 68 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

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

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

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

The Financial Services sector closed with ten gainers to five losers as against seven gainers to eight losers recorded in the previous session. Access Bank Plc moved up by +4.20% while Custodian & Allied Insurance Plc moved down by -4.70% loss after today’s trading session.

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

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

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

The Services sector closed with three gainers as against 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 +50.30% gains with FCMB recording -19.23% losses while Union Bank Plc leads the chart with +111.96% gains. However, Sterling Bank Plc recorded -10.24% losses while ETI also closed negative with -10.88% loss recorded. See the tracking table below.

Acquiring Banks