290911: ASI gains more points as market regains breadth, Shareholders of FCMB Plc assent to M&A deal

Proshare

Today, equity market regains its breadth as more stocks joined gainers' camp while market continued the northwards movement for the second day in a row despite sustained negative posture of Naira votes as the bulls continued to uphold their postures in style.

 

Furthermore, the key benchmark indices gained above 100 basis points to maintain the positive position, taking boost from Blue chip, Oil & Gas and Banking stocks while major NSE sectoral indices also maintained the mixed postures.

 

On the other hand, the shareholders of the FCMB today approved the merger and acquisition deal with FinBank Plc with 99.97% votes recorded for the approval. However, A full Yes vote is expected from FinBank’s shareholders as vote counting was in progress at time of preparing this report.

 

More so, we observed that the acquiring banks sustained the improved outlook observed yesterday when compared with previous postures recorded. Specifically, Access Bank Plc and FCMB bank Plc recorded sustained price uptrend by 4.86% and 4.91% respectively.

 

However, strong buy sentiments was observed towards FCMB Plc with significant volume and value growth while Access Bank Plc retained low volume posture-which suggests hold/optimistic posture of investors towards the stocks. However, Ecobank moved back to flat position with significant drop in volume traded. See the tracking table below.

 

Nevertheless, our tracking analysis of the trend is on course as part of our duty of care to the investing community.

 

The positive sentiment witnessed in Air services, Automobiles, Banking, Hotel & Tourism, Maritime, Packaging and Foreign Listing sectors impacted the outlook recorded today. Meanwhile moderate selling activities was witnessed in Breweries, Building Materials, Chemical & Paints, Conglomerates, Construction, Food & Beverages, Healthcare, Insurance, Petroleum Marketing, Printing & Publishing and  Real Estate sectors
 

In the same vein, the market capitalization of 199 first-tier equities appreciated by N36.85billion as the sentiments remained positive. 85 equities were traded today as against previous 105 with more activities recorded in Air Services, Banking, Insurance, Conglomerates, Breweries, Building Materials, Chemical & Paints, Petroleum Marketing, Printing & Publishing, Foreign Listing, Food & Beverages, Healthcare, Hotel & Tourism and Maritime.

 

Today, three out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips moved up by +0.66%, NSE Banking inches up by +4.23%, NSE Food & Beverages moved down by -1.21% and NSE Oil & Gas closed negative with -0.21% while NSE Insurance also closed negative with -0.14%.

 

At the close of trading session, the NSE All-Share Index inches up by +0.58% to close at 20,145.24 as against a decline by +0.07% recorded in the previous session to close at 20,029.66.  In the same vein, market capitalization appreciated by N36.85billion (US245.70million) to close at N6.42trillion (US$42.82billion) as against appreciation by N4.47billion (US$29.83million) recorded on preceding session to close at N6.38trillion (US$42.58billion).

 

The number of gainers at the close of trading session closed higher at 25 as against (23) gainers recorded in the previous session while decliners closed lower at sixteen (16) as against twenty-five (25) losers recorded in the previous trading day – suggesting a positive market breadth.

 

Today, Pinnacle Point Group notified the exchange that the Directors of the company have applied to the NSE for voluntary suspension of its securities with immediate effect following the Notice of Motion  received by the company on Monday, 26 September 2011. The company will be considering a further application for business rescue while shareholders will be kept abreast of developments in due course.

 

The following company presented its forecast. 

1.  Triple Gee & Company Plc Q3 2011: Turnover N174.768m, Cost of Sales (N99.268m), Operating Expenses (N58.913m), Profit before Tax N6.347m, Forecast Taxation (N952,000), Profit After Tax N5.395m.
 

As usual, Banking sector led the market transaction volume today with 112.99 million units valued at N702.66million (US$4.68million) exchanged in 1,859 deals as against 192.52 million units valued at N934.33million (US$6.22million) exchanged in 2,300 deals recorded in previous session.

 

The volume recorded in the sector was driven by transaction in the shares of zenith Bank, Diamond Bank, UBA, Access Bank and First Bank Plc and the total volume of 86.29 million units valued at N513.33 million traded in the shares of five stocks accounted for 48.68% of the entire market volume and their value represented 41.47% of the market’s value.

 

Transaction volume on the exchange moved down by 35.71% to close at 177.26 million units exchanged in 3,370 deals as against positive negative of 17.26% recorded in the previous trading to close at 275.72 million units exchanged in 4,159 deals.

 

Also, market value depreciated by 44.94% to close at N1.23billion (US$8.25million) as against depreciation by 2.67% recorded in the previous trading session to close at N2.24billion (US$14.98million). 

 

SECTORAL REVIEW                                                                                

The Agriculture/Agro-Allied sector closed with no price movement just as no price movement was also recorded on Wednesday. All stocks in the sector closed flat after today’s trading session.

The Air Services sector recorded one gainer to one unchanged price compared with no price movement recorded on previous trading day. Nacho Aviance Plc closed positive with +3.705 gain recorded while Air Services & Logistics Plc closed flat after today’s trading session. 

 

The Banking sector closed today with eleven (11) gainers to one (1) loser compared with nine (9) gainers to five (5) losers recorded on previous trading day. Guaranty Trust Bank Plc moved up by +4.98% to top the gainers’ chart while Fidelity Bank Plc moved down by -0.49% to top the losers’ chart after today’s trading session. 

 

The Breweries sector closed with one loser to one unchanged price compared with two losers to two unchanged prices recorded on previous trading day. Nigeria Breweries Plc moved down by -3.57% while Guinness Nigeria Plc closed flat after today’s trading session.  

 

The Building materials sector, today, closed with one loser to three unchanged prices compared with two losers to two unchanged prices recorded on previous trading day. Ashaka Cement Plc moved down by -0.68% while Dangote Cement and two other stocks closed flat after today’s trading activities.

 

The Conglomerates sector recorded one gainer to two losers compared with two losers to five unchanged prices recorded on Wednesday. PZ Plc both moved down by +0.07% while UAC of Nigeria and Transcorp Plc moved down by -5.00% and -4.00% respectively after today’s trading session.

 

The Food and Beverages sector closed with three gainers to three losers compared with one gainer to four losers recorded on previous trading day. Dangote Flour Mills Plc moved up by +4.85% while Flour Mills Plc moved down by -5.00% after today’s trading session.

 

The Insurance sector closed with one loser to ten unchanged prices compared with one gainer to two losers recorded on previous trading day.

 

The Petroleum sector records one gainer to two losers just as one gainer to two losers was also recorded on Wednesday. Oando Plc moved up by +4.48% while Forte Oil and Total Plc both moved down by -4.92% and -1.63% after today’s trading session.              

                                                                                                   

 Acquiring 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, September 29th, 2011; 16.50hrs

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