100812: Nigerian stocks shed N90.43 billion in the week on profit taking
Category: Daily & Weekly Market Updates
Pessimistic trading dominated Nigerian bourse in the week along with increased market price volatility as speculators booked profit considerably while Nigerian stocks experienced price correction due to the overbought posture of the market. The outlook recorded came in with our position as envisaged in our previous mid-week analysis report.
Consequently, the key benchmark indices experienced retracement while it failed to break its 52weeks resistance level due to strong profit-taking tendency and unrelenting sell pressure witnessed in the week. Meanwhile, improved speculative trading and risk appetite witnessed towards Small and Medium CAP stocks in the week despite weak market breadth.
Market opened the week bearish by -0.44% loss to erase the previous gain and traded below-the-line till Wednesday, extending downtrend by -0.96% loss as against -0.11% loss recorded on Tuesday as bears dominated market terrain till mid-week.
Conversely, market leveraged on mixed sentiments witnessed on Thursday to record a modest gain of +0.05% while the improved patronage reclaimed market breadth with an impressive margin of positive divergent.
On Friday, the All Share Index sustained the uptrend by 0.26% gain and closed negative for the week by -1.21% loss amid negative breadth.
Further analysis on acquiring banks since transaction date showed that the share price of Access Bank Plc has recorded +51.52% gains with FCMB recording -20.77% losseswhile Union Bank Plc leads the chart with +133.49% gains. However, Sterling Bank Plc recorded -14.17% losses while ETI also closed negative with -11.48% loss recorded.See the tracking table below
However, the All-Share Index in the week under review dipped by -1.21% to close at 23,239.03 as against an upbeat by +0.99% recorded last week to close at23,523.15.
In the same vein, the market capitalization in the week depreciated by N90.43 billion (US$565.21 million) to close at N7.39 trillion (US$46.22 billion) as against appreciation by N73.31 billion (US$488.78 million) recorded last week to close at N7.48 trillion (US$ 49.89billion).
The total volume traded in the week closed at 1.31 billion units valued at N9.13 billion (US$57.09 million) compared with 1.63 billion units valued at N11.88 billion (US$74.17 million) exchanged in 17,532 deals last week. The volume transaction in the week when compared with the previous week data moved down by -19.58% as against decline by -16.43% recorded last week. Weekly value also went down by -23.03% as against negative position of -5.58% recorded last week.
The volume traded in the top ten most traded stocks for the week represented 73.00% of the entire market volume transactions and their total value accounted for 72.20% of the market value.
Financial Services sector emerged the most traded sector in the week in terms of volume. The volume traded in the sector this week alone closed at 1.11biillion units, valued at N7.05billion and exchanged in 11,381 deals compared with 982.54 million units, valued at N7.94billion and exchanged in 10,281 deals in the preceding week. The volume traded in the sector accounted for 84.46% of the entire market compared with 71.74% of the ratio recorded last week.
Law Union Plc led the market volume for the week to displace Union Zenith Bank Plc as top traded stock on the transaction volume chart last week.
The sector’s volume transaction was mainly boosted by trading in the shares of the companies in the top-ten category.
Conglomerates sector followed with 55.75 million units valued at N96.00 million and exchanged in 741 deals compared with 34.69 million units, valued at N89.29 million and exchanged in 574 recorded in the sector last week.
NSE All-Share Index opened the week on a negative note with -0.44% loss, mixed sentiments dominated the week while ASI closed positive on Friday by +0.26% with negative market breadth.
In the week under review, two NSE sectoral Indices closed positive as NSE Insurance recorded the highest gain by +0.39% while NSE Banking closed with the lowest gain by +0.08%.
Top 10 Gainers of the week
The numbers of gainers in the week closed at thirty (30) compared with thirty-two (32) appreciations recorded last week. SMURFIT Plc topped the gainers chart for the week with +19.44% appreciations. Other gainers in the top ten appreciation class are outlined below.
Top 10 Losers of the week
Thirty-seven (37) stocks recorded price decline of different magnitude in the week under review compared with thirty-seven (37) stocks declined in the previous week. WAPIC Plc topped the losers chart for the week with-12.70% depreciation. Other losers in the top ten classes are outlined below.