020610: Market turns south after three days of appreciations: NSE ASI sheds 0.14%

Proshare

 

The weakened performance rate recorded at the close of the previous trading session consequently dipped further today with NSE All-Share Index posting negative outlook, after three days of consistent appreciations. The aggregate ASI appreciation of 2.58% recorded for the three trading days was halted today with -0.14% depreciations posted.

The decline recorded in Insurance, Food and Beverages and some blue chips stocks as indicated by the performance of NSE-30 index contributed to the overall market decline. Insurance sector led the decline chart among all the four NSE sectoral indexes.
There are evidences of high volatility rate in all the sectors of the market. This trend shows clear indications of lack of investors’ commitment to holding the stocks as it seems majority of players in the market now resort to buy and sell within the short period of time.
Meanwhile, notwithstanding the present situations in the market, we still hold the optimistic view that there are better days ahead. Therefore, we reiterate our view that investors should take a closer look at valued stocks with strong fundamentals in the market while waiting for the much expected sustainable rebound.
When all the pending issues relating to AMC bills are finally resolved and CBN policy on margin lending takes effect and banks resume lending to stockbrokers, there should be a level of improvement in both the market activities and price movements. Therefore, this may be the best opportunities for discerning investors to take strategic positions while waiting for the good days envisaged.
The share price of Custodian and Allied Insurance Plc was today adjusted for a dividend of 12k per share earlier declared. Also, Pinnacle Points Group Plc today notified the exchange of change in its share capital following the acquisition of by Trilinear of ABSA entire holding in Pinnacle Point. The acquisition has been approved by the completion Commission of South Africa.
Banking sector led the market transaction volume today 119.246 million units valued at N1.118 billion exchanged in 3,467 deals. Transactions in the shares of Zenith Bank Plc and First Bank Nigeria Plc largely boosted the volume traded in the sector. Transactions volume in the shares of the banks alone accounted for 35.83% of the entire banking sector volume traded for the day.  
The number of gainers at the close of trading session closed lower at thirty one (31) compared with forty two (42) recorded yesterday while decliners closed higher at forty three (43) compared with thirty (30) losers of the previous trading day. Market closed with 1:1.3 advancers to decliners’ ratio.
At the close of trading session, the All-Share Index declined by -0.14% to close at 26,195.74 as against appreciation by +0.19% recorded yesterday to close at 26,232.57. Market capitalisation shed N8.957 billion (US$59.837 million) to close at N6.372 trillion (US$42.564 billion) as against appreciation by N12.004 billion (US$80.188 million) recorded yesterday to close at N6.380 trillion (US$42.624 billion).
Two of the four sectoral indexes recorded appreciation at the close of trading session: NSE-Oil and Gas index gained +0.24% to close at 420.28 compared with +0.36% appreciation recorded yesterday, NSE-Banking index appreciated by +0.51% to close at 407.44 compared with appreciation by +0.41% recorded yesterday. NSE-30 index declined by -0.22% to close at 1,083.81 as against appreciation by +0.20% recorded yesterday, NSE-Food and Beverages dipped by -0.65% to close at 855.59 compared with decline by -0.02% recorded yesterday. NSE-Insurance index depreciated by -1.38% to close at 195.52 as against appreciation by 0.41% recorded at the close of trading session yesterday.
SECTORAL REVIEW
There was a reverse of the previous trading day’s trend in the sector today as the number of the decliners closed higher; there were two decliners to a gainer at the close of trading session.
Transactions in the shares of Air Services sector posted bearish outlook as against considerable improvement recorded yesterday. Sellers besieged all the shares in the sector, hence the massive decline recorded.
There were still indications of bearish trend in the Breweries sector as the boost in price performance recorded at the close of the previous month is yet to resurface. Transactions in the sector closed with a gainer to a loser.
Evidence of investors’ interest still remained in the shares of the Building Materials as the shares price of almost all the stocks traded closed higher above their day’s closed prices.  
Stocks in the Construction sector posted a gainer and a loser at the close of trading session.
The performance of banking sector still remained below average at the close of trading session as sell pressures continued to mount in the shares of majority of stocks. Only seven stocks could make the gainers chart for the day as against ten decliners.
Performance of stocks in the Conglomerate sector remained below expectation. The sector could not maintain the tempo of price movement recorded in the latter trading days of the previous month.
As applicable to some other sectors, stocks in the Food and Beverages sector closed on southward note as sell pressures waxed stronger at the close of trading session. Only one stock could survive the bears to make the gainers’ chart for the day.
There were both mixtures of buy and sell in the shares of Insurance companies today, giving indications high volatility rate in the shares of the sector. The sector recorded four decliners to four gainers.
Stocks in Petroleum Marketing sector maintained the positive outlook posted at the close of previous trading session. Investors’ interest seems remain in these stocks and this may likely continue in the days ahead.
The total transaction volume at the close of market session today dipped by -10.01% to close at 349.342 million units exchanged in 7,294 deals as against marginal value growth by +7.55% recorded yesterday to close at 388.219 million exchanged in 6,595 deals.
Market value also declined by -10.72% to close at N2.193 billion (US$14.652 million) compared with value decline by -27.05% recorded yesterday to close at N2.457 billion (US$16.411 million). Law Union and Rock Insurance Plc and Mobil Nigeria Plc topped the gainers chart for the day with price appreciation of +5%. However, NSLTECH Plc and Berger Paints Plc topped the losers chart for the day with -5% price depreciations.
 The total volume traded in the shares of top five trades at the close of trading session stood at 141.041 million units valued at N692.183 million (US$4.623 million) exchanged in 1,432 deals. The volume and value of the top five trades for the day accounted for 40.37% and 31.55% of the market volume and value in that other.
 
 
 
 

 research@proshareng.com, 00234-1-7624131, June 2, 2010; 1515hrs

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