200611: NSE ASI dips below 6 weeks low to enter full bearish mode

Proshare

 

 

Today, market breadth collapsed further as more stocks shed weight considerably on the back of low bargain drive and intense selling activities witnessed across the board particularly in the building material sector while market sustained eight days continuous bleeding with growing volatility.
 
More so, the key benchmark indices continued to hover in the negative territory and remained depressed below six weeks low as it lost ground to sell pressure in the afternoon session after moderate buying witnessed in early trades.
 
Further analysis revealed that the All Share Index is technically in full bearish mode as it closed at 25,119.41 below its 20days, 50days and 200days moving averages of 25,682.25, 25,411.16 and 25,172.80 respectively.
 
The continued sell activities witnessed towards blue chips and across the board particularly in major sectors like Banking, Food & Beverages, Insurance and Oil & Gas impacted today’s outlook.
 
 In the same vein, the market capitalization of 199 first-tier equities, depreciated by N60.67 billion as sentiments remained bearish. 125 equities were traded today as against previous 109 with more activities recorded in Building Materials, Banking, Media, Insurance and Conglomerates sectors.
 
Also, the rescued banks sustained the improved bargain outlook with mixed sentiments observed today as the league closed with 4 gainers, 4 losers and 1 flat position on the average of 3.65% gain and -3.46% loss. Unity Bank Plc shed the highest weight by -4.17% loss while Afribank Plc closed with 4.76% gain to top the league.See the performance chart below.
 
All NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips in the market fell by -1.12%, NSE Banking dropped the highest points by -1.77%, NSE Insurance declined by -1.49%, NSE Food & Beverages down by -0.95% while NSE Oil & Gas dipped by -0.81%.
 
At the close of trading session, the NSE All-Share Index dropped by -0.75% to close at 25,119.41 as against a decline by -0.47% recorded previous session to close at 25,309.17 In the same vein, market capitalization depreciated by N60.67billion (US$411.19 million) to close at N8.03trillion (US$55.10billion) as against depreciation by N38.10billion (US$258.26million) recorded on preceding session to close at N8.09trillion (US$54.84billion).
 
The number of gainers at the close of trading session closed lower at 16 as against (24) gainers recorded in the previous session while decliners closed higher at thirty-seven (24) as against twenty-five (25) losers recorded in the previous trading day – suggesting negative breadth.
 
Surprisingly, building materials sector led the market transaction volume today with 190.26 million units valued at N4.59billion (US$31.11Million) exchanged in 110 deals as against 1.99 million units valued at N85.76million (US$0.5Million) exchanged in 148 deals recorded previous session.
The volume recorded in the sector was driven by transaction in the shares of Ashaka Cement Plc and the total volume of 189.28 million units valued at N4.54 billion traded in the shares of the stock accounted for 47.46% of the entire market volume and their value represented 70.20% of the market’s value.
Transaction volume on the exchange moved down by -40.00% to close at 398.80 million units exchanged in 4,769 deals as against positive position of 192.32% recorded in the  previous trading to close at 664.69 million units exchanged in 4,498 deals.
lso, market value appreciated by 263.51% to close at N6.46 billion (US$43.84million) as against depreciation by -7.02% recorded in the previous trading session to close at N1.77 billion (US$12.06million)
SECTORAL REVIEW
 
The Agriculture/Agro-Allied sector closed with no price just as with no price movement was also recorded on Friday. All stocks in the sector closed flat after today’s trading.
 
The Air Services sector recorded one gainer to one unchanged price compared with one gainer to one unchanged price recorded on previous trading day. Air Service and Logistics Plc moved up by +4.51% while Nacho Aviance Plc closed flat after today’s trading session.
 
The Banking sector closed today with four (4) gainers to fourteen (14) losers compared with twelve (12) gainers to eight (8) losers recorded on previous trading day. Afribank Plc led the gainers’ chart in the sector with +4.76% gain recorded while Oceanic Bank, Bank PHB and Union Bank Plc also recorded +4.50%, +4.41% and +0.93% gain respectively. First Bank Plc led the losers’ chart with -4.55% while Skye Bank, Sterling Bank and Unity Bank Plc also recorded -4.53%, -4.126% and -4.17% in that order after today’s trading session.
 
The Breweries sector closed with one loser to five unchanged prices compared with no price movement recorded on previous trading day. Nigerian Breweries Plc moved down by -0.89% while other traded stocks in the sector closed unchanged after today’s trading session.
 
The Building materials sector, today, closed with two losers to two unchanged prices compared with two gainers to two losers recorded on previous trading day. Ashaka Cement and Lafarge WAPCO Plc both moved southwards by -1.44% while Cement Company of Northern Nigeria and Dangote Cement Plc closed flat after today’s trading session.
 
The Conglomerates sector recorded two gainers to two losers compared with two gainers to one loser recorded on Friday. PZ & Unilever Nigeria Plc both moved northwards by +1.94% and +0.15% while UAC Nigeria and Transcorp Plc bothdeclined southwards by -3.32% and -1.10% respectively after today’s session.
 
The Food and Beverages sector closed with two gainers to two losers compared with one gainer to three losers recorded on previous trading day. Flour Mills and Nestle Nigeria Plc both advanced by +1.08% and +0.13% while Honeywell Flour Mills and Dangote Sugar Refinery declined by -4.84% and -4.96% after today’s trading session.
 
The Insurance sector closed with one gainer to four losers compared with one gainer to three losers recorded on previous trading day.
 
The Petroleum sector records one gainer to one loser compared with no price movement recorded on Friday. The share price of Eterna Oil Plc advanced northwards by +1.16% while Oando Plc declined by -1.96% after today’s trading session.
 
 
Rescued Banks
 
 

 

Earnings report for banks
 
 
 
Top Trades
 
 
Sectoral Index
 
 
Top Ten Gainers of the day.
 
 
Top Ten Losers of the day.
 
 
 
 
Follow the link to get the latest banking results details
 
analyst@proshareng.com , 00234-1-7624131, June 20th 2011; 17.00hrs
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