160610: ASI glides north with 0.76% as Continental Reinsurance gives 5.5k dividend


Equity market at the close of trading session retained its positive outlook on a higher note when compared with appreciation recorded in the entire market yesterday; the appreciation recorded at the close of trading showed indications of improvement on buy transactions on the floor of the Nigerian Stock Exchange. Both the transaction volume and value for the day recorded significant growth; the transaction value closed with more than double of the figures recorded yesterday.

The higher performance growth recorded could be attributed to performances of some of the blue chip as well as upbeat recorded in the banking stocks. Among all the four NSE sectoral indexes, banking sector index posted the highest appreciation figure to overtake Insurance sector that recorded the highest appreciation yesterday.

However, the positive performance recorded in the shares of Insurance companies yesterday could not be sustained at the close of trading today as sell pressures took toll on many of the stocks, and the sector consequently shed weight very considerably. This further buttress the fact speculative activities remain predominant in the sector.

We still enjoin investors to keep a closer watch on the market as trend across all the sectors in the market shows indications that market may continued to post encouraging outlook in the days ahead as most of the prices seem to have reached rock bottom. This trend is most prominent in most of the blue chip stocks and stocks in this category may post more positive rally in the days ahead. We said this in our report yesterday. (http://www.proshareng.com/news/singleNews.php?id=10971).

The share price of Smart Products Plc was today marked down for 9k dividend per share doled out to its numerous investors. Continental Reinsurance Plc today published its 2009 audited account and rewarded its numerous investors with 5.5k dividend per share.

As usual, banking sector led the market transaction volume today with 171.209 million units valued at N1.677 billion (US$11.202 million) exchanged in 3,658 deals. Transactions in the shares of First Bank Nigeria Plc, Zenith Bank Plc and Diamond Bank Plc boosted the volume traded in the sector. The total volume of 79.532 million units valued at N993.893 million accounted for 46.45% of the entire sector volume.

The number of gainers at the close of trading session rose to thirty nine (39) compared with twenty nine (29) recorded yesterday while decliners closed at thirty four (34) compared with twenty four (24) of the previous trading day. Market closed with 1.15:1 advancers to decliners’ ratio.

At the close of trading session, the All-Share Index appreciated by +0.76 to close at 25,719.32 compared with appreciation by +0.32% recorded yesterday to close at 25,529.49. Market capitalisation also gained by N46.904 billion (US$313.21 million) to close at N6.256 trillion (US$41.790 billion) compared with N19.831 billion (US$132.474 million) appreciation recorded yesterday to close at N6.209 trillion (US$41.477 billion).

Two of the four sectoral indexes recorded appreciations at the close of trading session: NSE-Oil and Gas index declined by -0.42% to close at 414.34 compared zero appreciation recorded yesterday, NSE-Insurance index declined by -1.66% to close at 192.92 as against appreciation by +1.80% recorded yesterday, NSE-Food and Beverages index inched up by +0.18% to close at 831.08 as against decline by -0.47% recorded yesterday, NSE-30 index appreciated by +0.53% to close at 1,064.21 compared with +0.23% appreciation recorded yesterday and NSE-Banking index gained by +1.55% to close at 401.93 compared with +0.89% appreciation recorded yesterday.

The bearish trend in the Agriculture sector returned at the close of trade season as the two price changes recorded were on the negative note as against the seemly improved outlook recorded in the sector yesterday.

The depressive outlook of Air Services sector remained at the close of trading session; Nahco Plc stock price retained its previous price as against decline recorded yesterday while Air Service Plc price turned south.

The performance of stocks in the banking sector at the close of trading session improved the more when compared with yesterday performance in the sector as the sector eventually recorded twelve gainers to five losers compared with eleven gainers against six losers recorded yesterday.  

The general outlook of stocks in the Breweries sector reversed to negative at the close of trading with two of the three stocks traded recording price decline; only International Breweries Plc stock recorded price appreciation at the close of trading session.

Positive outlook returned to stocks in the Building Materials sector as the number of gainers closed on the high side; three of the four stocks traded posted price growth as against passive mood that greeted stocks in this sector yesterday.

Performance of stocks in the Conglomerate sector at the close of trading session recorded improvement over what had been in the sector in the recent times. The number of gainer increased to two compared with One recorded yesterday. However, one stock recorded price loss as well. Some stocks in the sector also present buy opportunities for discerning investors.  

The performance of shares in the Construction sector closed on a low ebb at the end of trading session with all the stock price at their previous closed compared with improved outlook recorded yesterday to record three gainers. Stocks in the sector also present buy opportunities for discerning investors.

The grip of bear closed on a weakened note in the Food and Beverages sector at the close of trading session as against overwhelming bearish trend of the previous trading day. Our view as contained in our yesterday’s report that the sector might post improved performance was made good by the trend recorded at the close of trading session. More improvement is expected in the trading days ahead, all things being equal.

The general outlook of shares in Insurance sector posted mixtures of buy and sells. Prestige Insurance recorded considerable growth in the sector. However, sell pressure consequently overwhelmed the buy pressures for the day.

Stocks in Petroleum Marketing at the close of trading recorded one gainer to a loser compared with two losers posted yesterday.

The total transaction volume at the close of market session today rose more significantly by +52.75% to close at 360.610 million units exchanged in 7,063 deals compared with moderate volume growth by +14.48% recorded yesterday to close at 236.072 million units exchanged in 6,536 deals.

In the same vein, market value inched up very impressively by +124.01% to close at N4.167 billion (US$27.838 million) compared with marginal value increase of +0.02% recorded yesterday to close at N1.860 billion (US$12.427 million). AIICO Insurance Plc and Chevron Nigeria Plc topped the gainers chart for the day with price appreciation by +5%. However, Afromedia Plc and FTN Cocoa 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 145.205 million units valued at N2.408 billion (US$16.087 million) exchanged in 1,709 deals. The volume and value of the top five trades for the day accounted for 40.27% and 57.78% of the market volume and value in that other.

research@proshareng.com, 00234-1-7624131, June 16, 2010; 1535hrs


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