010812 Nigerian Stock Market resumes uptrend; records +1.16% gain

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010812 Nigerian Stock Market resumes uptrend; records +1.16% gain

The bulls re-surfaced in style on the Nigerian bourse as the renewed bargain activities witnessed across the main board pull the market benchmark indicator back to the green zone while the positive transaction recorded in the share price of Dangote Cement Plc also contributed to the outlook witnessed after today’s session.

Nevertheless, the key benchmark indices resumed uptrend as sentiments turned positive, taking supports majorly from Large CAP stocks which was particularly driven by ZENITHBANK.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N85.28 billion as market sentiments turned negative. 99 equities were traded today as against previous 105 with more activities recorded in Financial Services, Healthcare, ICT, Conglomerates, Consumer Goods, Industrial Goods, Oil & Gas, Services, Agriculture and Construction/Real Estate sectors.

Today, four NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips retraced by +1.06%, NSE Insurance closed with -2.00% loss while NSE Oil & Gas closed flat, NSE banking records +1.06% gain while NSE Food also records +0.10% gain. The New NSE LII closed positive with +1.02% gains.

At the close of trading session, the NSE All-Share Index inches up +1.16% to close at 23,329.34 as against a decline by -1.03% recorded in the previous session to close at 23,061.38. In the same vein, market capitalization appreciated by N85.28 billion (US$568.38 million) to close at N7.42 trillion (US$49.48billion) as against depreciation by N76.65 billion (US$510.84 million) recorded in preceding session to close at N7.34 trillion (US$48.91billion).

The number of gainers at the close of trading session closed lower at 21 as against 23 recorded in the previous session while decliners closed flat at twenty-four (24) as against twenty-four (24) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. Regency Alliance Insurance Plc in its Q2 ’12 result recorded positive turnover growth of +16.5% and negative PAT growth of -11.9%.

2. Japaul Oil & Maritime Plc in its Q2 ’12 result recorded positive interest income growth of +17.3% and positive PAT growth of +22.9%.

3. CAP Plc in its Audited result recorded positive turnover growth of +28.9% and positive PAT growth of +43.5%.

4. GlaxoSmithKline Plc in its Q2 ‘12 result recorded positive turnover growth of +26.1% and positive PAT growth of +15.1%.

5. DN Meyer Plc in its Q2 ‘12 result recorded positive turnover growth of +7.4% and positive PAT growth of +120.9%.

As usual, Financial services sector led the market transaction volume today with 351.60 million units valued at N2.32 billion (US$15.47 million) exchanged in 2,359 deals as against 260.71 million units valued at N2.76 billion (US18.45million) exchanged in 2,504 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of FIDELITYBK, ZENITHBANK, FCMB, PRESTIGE and GUARANTY Plc and the total volume of 273.15 million units valued at N1.94 billion traded in five stocks accounted for 55.31% of the entire market volume and their value represented 69.28% of the market’s value.

Transaction volume on the exchange moved up by +20.81% to close at 493.84 million units exchanged in 3,990 deals as against an upbeat by +173.21% recorded in the previous trading to close at 408.78 million units exchanged in 4,291 deals.

Also, market value depreciated by -24.12% to close at N2.80 billion (US18.69 million) as against appreciation by +189.98% recorded in the previous trading session to close at N3.69 billion (US$24.63 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 351.60 million units of shares traded in 2359 trades within the sector, followed by Healthcare sector to come second on the chart with 81.62 million units traded in 62 trades while ICT sector recorded 27.89 million units in 10 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 42.91% contribution to market turnover, followed by Small Cap stocks with 32.67% while Large Cap stocks stake 24.43% 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 WAPCO, UBA and UNILEVER 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 gainer to one loser as against two gainers to one loser recorded in the previous session.

The Conglomerates sector closed with one gainer to two losers as against one gainer to two losers recorded in the previous session.

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

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

The Financial Services sector closed with seven gainers to nine losers as against eight gainers to five losers recorded in the previous session. Zenith Bank Plc moved up by +3.89% while Union Bank Plc moved down by -3.87% loss after today’s trading session.

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

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

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

The Services sector closed with one gainer to three losers as against three 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 +44.24% gains with FCMB recording -17.95% losses while Union Bank Plc leads the chart with +101.91% gains. However, Sterling Bank Plc recorded -8.66% losses while ETI also closed negative with -12.60% loss recorded. See the tracking table below.

Acquiring Banks