201112 Nigerian Equities switch into oscillating mode, returns +0.35% gain

Proshare

Today, Nigerian market witnessed improved patronage towards investment in equities to close above the line with 91.16 points despite negative breadth as value investors increased stakes in both Consumer Goods and Financial Service stocks largely in medium and small CAP categories.

Notwithstanding, the moderate rally witnessed towards large CAPs salvaged the trend, considering the intra-day market volatility. To this regard, a cautious approach is advised as market tends to switch into oscillating mode.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N29.05 billion as market sentiments turned positive. 95 equities were traded today as against previous 91 with more activities recorded in Financial Services, Oil & Gas, Industrial Goods, Consumer Goods and Conglomerates.

Also, as a result of proposed merger between Flour Mills of Nigeria Plc and Nigerian Bag Manufacturing Company Plc, the shareholders are further advised that the respective Boards of Directors of Flour Mills and Bagco propose to recommend to shareholders a consideration of 25 (twenty-five) ordinary shares of Bagco in exchange for 1 (one) ordinary share of Flour Mills, or a cash consideration of N2.75 for each ordinary share of Bagco as at the Effective Date.

The cash consideration of N2.75 represents a c.39% premium to Bagco’s closing share price as at 16 November 2012, and a c.68% premium to Bagco’s closing share price as at 5 September 2012, the date prior to announcement of the Transaction.

Today, two NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips retraced by +0.59%, NSE Food closed with +0.98% gain while NSE Banking also climbed by +0.39%, NSE Insurance dipped further by -1.47% loss as NSE Oil & Gas fell further by -1.37% gain. The New NSE LII closed positive with +0.02% loss.

At the close of trading session, the NSE All-Share Index retraced by +0.35% to close at 26,358.73 as against a decline by -0.51% recorded in the previous session to close at 26,267.57. In the same vein, market capitalization appreciated by N29.05 billion (US$181.56 million) to close at N8.39 trillion (US$52.49 billion) as against depreciation by N42.50 billion (US$283.24 million) recorded in preceding session to close at N8.37 trillion (US$55.75 billion).

The number of gainers at the close of trading session closed higher at 22 as against 21 recorded in the previous session while decliners closed higher at twenty-seven (27) as against nineteen (19) losers recorded in the previous trading day – suggesting a negative market breadth.

As usual, Financial sector led the market transaction volume today with 304.18 million units valued at N1.77 billion (US$11.07 million) exchanged in 2,440 deals as against 158.63 million units valued at N1.46 billion (US9.76 million) exchanged in 2,135 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UNIC, ACCESS and UBA Plc and the total volume of 192.32 million units valued at N800.37 Million traded in the stocks accounted for 48.44% of the entire market volume and their value represented 32.16% of the market’s value.

Transaction volume on the exchange moved up by +103.68% to close at 397.04 million units exchanged in 4,190 deals as against an upbeat by +8.38% recorded in the previous trading to close at 194.93 million units exchanged in 3,758 deals.

Also, market value appreciated by +12.04% to close at N2.48 billion (US15.55 million) as against appreciation by +94.59% recorded in the previous trading session to close at N2.22 billion (US14.80 million).

Sectoral Performance (According to New Market Segmentation)
Financial Services sector led the market sectoral performance with 304.18 million units of shares traded in 2,440 trades within the sector, followed by Oil & Gas sector to come second on the chart with 42.95 million units traded in 256 trades while Industrial Goods sector recorded 20.94 million units in 243 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 Small Cap stocks according to new market segmentation topped today's market activity with 51.23% contribution to market turnover, followed by Medium Cap stocks with 36.28% while Large Cap stocks stake 12.49% to come last on the chart.

Among the Large cap stocks, FIRSTBANK, ZENITHBANK and GUARANTY topped the 8 traded stocks in that class while ACCESS, UBA and TRANSCORP dominated Medium Cap of 24 traded stocks. Similarly, UNIC, BECOPETRO and BAGCO led 64 traded stocks in the Small Cap category in that order. See table below



SECTORAL REVIEW
The Agriculture sector closed with two gainers to one loser as against two gainers recorded in the previous session.

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

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

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

The Financial Services sector closed with nine gainers to eight losers as against eight gainers to seven losers recorded in the previous session.

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

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

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

The Natural Resources sector closed with no price movement as against no price movement recorded in previous session.

The Oil & Gas sector closed with one gainer to three losers as against two gainers recorded in previous session.

The Services sector closed with one gainer to four losers as against closed with one gainer to four 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 +74.55% gains with FCMB recording -16.41% losses while Union Bank Plc leads the chart with +247.37% gains. However, Sterling Bank Plc recorded +26.77% gains while ETI closed positive with -5.14% loss recorded. See the tracking table below.

Acquiring Banks

Stocks that made Headlines Today

Earnings Report for Banks

Top Trades

Sectoral Index

Market Outlook by Capitalisation

Top Ten Gainers of the day

Top Ten Losers of the day


analyst@proshareng.com , 00234-1-7624131, November 20th 2012; 17.40hrs

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