230811: Sell pressure defies improved breadth as NSE ASI dips by -1.03%

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Sell-off tendency continued to depress equity market despite improved breadth as bear traders intensified activities with volume turnover surging by +40.97% while market sustained the downwards trend for the third consecutive day in a row amid improved Naira votes.
 
More so, market sentiment remained bearish with market dipping further while two losers for every gainer was witnessed, plunging the key benchmark indices considerably by 234.39 basis points- an indication of intense bearish sentiments in comparison with previous outlook.
 
The negative market sentiment witnessed in Automobiles, Banking, Breweries, Building Materials, Chemical & Paints, Conglomerates, Food & Beverages, Insurance, Healthcare, Maritime and Foreign Listing impacted the outlook recorded today. Meanwhile moderate buying was witnessed in Air Services, Commercial Services, Computer & Office Equipments, Engineering Technology, Healthcare and Petroleum Marketing sectors.
 
In the same vein, the market capitalization of 199 first-tier equities depreciated by N74.97billion as the sentiments recorded a negative outlook. 116 equities were traded today as against previous 105 with more activities recorded in Automobiles, Banking, Insurance, Air Services, Conglomerates, Breweries, Commercial Services, Petroleum Marketing, Food & Beverages, ICT, Building Materials and Maritime.
 
The Shares prices of Afribank Plc, Spring Bank Plc and Bank PHB Plc remained stagnant as a result of the Full Suspension placed on them following the nationalization while Intercontinental Bank Plc, FinBank Plc, Oceanic Bank Plc and Union Bank Plc also experienced no price movement due to the Technical Suspension following the signing of their Transaction Implementation Agreement. In addition, analysis revealed Wema Bank Plc closed flat while Unity Bank Plc also recorded +4.76% loss as normal trading activities continued on them. See the performance chart below
 
Today, all five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips moved down by -1.23%, NSE Banking dips by -1.93%, NSE Food & Beverages moved down by -1.22% and NSE Oil & Gas closed negative with -0.42% while NSE Insurance closed negative by -0.32%.
 
At the close of trading session, the NSE All-Share Index dips by -1.04% to close at 22,313.23 as against a decline by -0.46% recorded in the previous session to close at 22,547.62.  In the same vein, market capitalization depreciated by N74.97billion (US499.84million) to close at N7.13trillion (US$47.58billion) as against depreciation by N56.42billion (US$376.15million) recorded on preceding session to close at N7.21trillion (US$48.08billion).
 
The number of gainers at the close of trading session closed higher at 13 compared with (4) gainers recorded in the previous session while decliners closed lower at twenty-six (26) as against twenty-seven (27) losers recorded in the previous trading day – suggesting a negative market breadth.
 
The following companies presented their results
 
  1. Premier Paints Plc: in its Q1 2011 result recorded negative turnover growth by 54.3% and negative PAT growth by 1617.3%.
  2. Premier Paints Plc: in its Q2 2011 result recorded negative turnover growth by 20.8% and negative PAT growth by 342.6%.
  3. Premier Paints Plc: in its Audited 2010 result recorded negative turnover growth by 25.7% and negative PAT growth by 1617.3%.
  4. Guinea Insurance Plc: in its Audited 2010 result recorded negative turnover growth by 0.4% and negative PAT growth by 691.4%.
  5. Studio Press Plc: in its Q1 2011 result recorded negative turnover growth by 69.89% and negative PAT growth by 28.43%.
Also, the following company presented its forecast
Premier Paints Plc: Q3 2011 Turnover N185.628million, Cost Of Sales (N126.193million) Profit Before Tax   (N21.075million), Taxation Nil, Profit After Taxation (N21.075million)
As usual, Banking sector led the market transaction volume today with 183.49 million units valued at N1.04billion (US$6.97million) exchanged in 2,800 deals as against 145.30 million units valued at N1.14billion (US$7.63million) exchanged in 2,103 deals recorded in previous session.
The volume recorded in the sector was driven by transaction in the shares of Fin Bank, Guaranty Trust Bank, UBA, Zenith Bank and First Bank Plc and the total volume of 131.11 million units valued at N850.62million traded in the shares of five stocks accounted for 50.66% of the entire market volume and their value represented 28.17% of the market’s value.
Transaction volume on the exchange moved up by 40.97% to close at 258.81 million units exchanged in 4,679 deals as against positive position of 58.47% recorded in the previous trading to close at 183.59 million units exchanged in 3,545 deals.
Also, market value appreciated by 80.90% to close at N3.01billion (US$20.12million) as against appreciation by 45.28% recorded in the previous trading session to close at N1.66billion (US$11.12million)
SECTORAL REVIEW 
                                                                                          
The Agriculture/Agro-Allied sector closed with no price movement just as no price movement was also recorded on Monday. All stocks in the sector closed flat after today’s trading session.
 
The Air Services sector recorded one gainer to one unchanged price just as one loser to one unchanged price was also recorded on previous trading day. Nacho Aviance Plc moved up by +0.60% while Air Service and Logistics Plc closed flat after today’s trading session.
 
The Banking sector closed today with three (3) gainers to nine (9) losers compared with one (1) gainer to ten (10) losers recorded on previous trading day. Ecobank Plc moved up by +4.71% to top the gainers’ chart while UBA Plc moved down by -4.98% to top the losers’ chart after today’s trading session.
 
The Breweries sector closed with one loser to three unchanged prices compared with one gainer to two unchanged prices recorded on previous trading day. Nigerian Breweries Plc closed negative with -1.73% loss recorded while Champion Breweries, International Breweries and Guinness Nigerian Plc closed flat after today’s trading session.
 
The Building materials sector, today, closed with one loser to three unchanged prices compared with no price movement recorded on previous trading day. Lafarge WAPCO Plc moved down by -3.30% while Ashaka Cement, Cement Co. of Northern Nigeria and Dangote Cement Plc closed flat after today’s trading session.
 
The Conglomerates sector recorded one gainer to three losers compared with one gainer to four unchanged prices recorded on Monday. Transcorp Plc moved up by +2.27 while Chellarams Plc moved down with -4.99% after today’s trading session.
 
The Food and Beverages sector closed with four losers to nine unchanged prices compared with three losers to ten unchanged prices recorded on previous trading day. Dangote Sugar Refinery Plc closed negative with -5.00% while Honeywell Flour Mills Plc and eight other stocks closed flat after today’s trading session.
 
The Insurance sector closed with three gainers to two losers compared with five losers to nine unchanged prices recorded on previous trading day.
 
The Petroleum sector records one gainer to two losers compared with one loser to seven unchanged prices recorded on Monday. Conoil Plc moved up by +4.98% while Oando Plc moved down by -2.75% 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.
 

 
Corporate Declaration
 

 
 
Follow the link to get the latest banking results details
 
analyst@proshareng.com , 00234-1-7624131, August 23rd, 2011; 16.30hrs
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