140612 All-Share Index dips by -0.22% as the bears re-surface

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140612 All-Share Index dips by -0.22% as the bears re-surface

Today, trading activities closed with the bears to halt the three-day rally as sell pressure outweighed bargain hunting while market breadth closed considerably weak compared to previous outlook amid increased volume turnover and Naira votes.

Nevertheless, the key benchmark indices resumed downtrend as sentiments turned negative, taking hits majorly from Large CAP stock which was particularly driven by ZENITH while Medium CAP stocks also contributed to the outlook recorded today due to renewed selling activities witnessed in Consumer Goods, Financial Services and Oil & Gas sectors.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N14.91 billion as market sentiments turned negative. 95 equities were traded today as against previous 96 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Oil & Gas, Healthcare, Industrial Goods, Services, ICT, Agriculture, Construction/Real Estate and Natural Resources sectors.

Today, all five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips resumed downtrend by -0.15%, NSE Insurance closed with -0.32% loss while NSE Oil & Gas maintained downtrend with -2.54% loss with NSE banking recording -0.73% loss while NSE Food also recorded -0.04% marginal loss.

At the close of trading session, the NSE All-Share Index dips by -0.22% to close at 21,251.91 as against an upbeat by +0.28% recorded in the previous session to close at 21,298.62. In the same vein, market capitalization depreciated by N14.91 billion (US$99.38 million) to close at N6.78 trillion (US$45.21billion) as against appreciation by N18.86 billion (US$125.75 million) recorded in preceding session to close at N6.79 trillion (US$45.31billion).

The number of gainers at the close of trading session closed lower at 24 as against 25 recorded in the previous session while decliners closed higher at twenty-three (23) as against nineteen (19) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their forecasts

1. AIICO Insurance Plc Q3 2012 forecast: Gross Premium N2.561b Net Premium Earned N1.911b Net Claims Incurred (N733.984m) Underwriting Profit N667.451m Investment & Other Income N443.689m Management Expenses & Provisions for Doubtful Accounts (N766.734m) Profit before Taxation N344.406m Taxation (Nil) Profit after Tax N344.406m Other Comprehensive Income N166.560m Total Comprehensive Income before Taxation N510.966m

2. Evans Medical Plc Q3 2012 forecast: Revenue N1.619b Expenses (N1.522b) Profit before Taxation N96.501m Taxation (N31.845m) Profit after Tax N64.656m

3. GlaxoSmithKline Plc Q3 2012 forecast: Turnover N6.756b Profit before Taxation N848.713m Forecast Taxation (N267.888m) Profit after Taxation N580.824m

4. GTAssure Plc Q3 2012 forecast: Gross Insurance Premium Written N9.525b Insurance Premium Revenue N5.810b Profit before Tax N1.516bTaxation (N275.406m)Profit after Tax N1.241b

5. Transcorp Plc Q3 2012 forecast: Total Income N2.658b Total Operating Expenses (N487.032m) Profit before Interest & Taxation (PBIT) N2.171b Finance Charges (N397.642m) Profit before Tax N1.773b Taxation (N265.933m) Profit after Tax N1.507b

6. Pharma-Deko Plc Q3 2012 forecast: Revenue N454m Expenses (N329m) Profit before Taxation N10m Forecast Taxation (Nil)Profit after Taxation N10m

As usual, Financial Services sector led the market transaction volume today with 138.93 million units valued at N1.10 billion (US$7.36 million) exchanged in 2,027 deals as against 131.40 million units valued at N625.57 million (US4.16 million) exchanged in 1,760 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of GUARANTY, ACCESS, FIRSTBANK, UBA and WAPIC Plc and the total volume of 105.20 million units valued at N915.35 million traded in five stocks accounted for 43.86% of the entire market volume and their value represented 55.78% of the market’s value.

Transaction volume on the exchange moved up by +21.44% to close at 239.87 million units exchanged in 3,595 deals as against an upbeat by +41.77% recorded in the previous trading to close at 197.51 million units exchanged in 2,889 deals.

Also, market value appreciated by +59.11% to close at N1.64 billion (US10.93 million) as against depreciation by -19.78% recorded in the previous trading session to close at N1.03 billion (US$6.87 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 138.93 million units of shares traded in 2,027 trades within the sector, followed by Conglomerates sector to come second on the chart with 68.75 million units traded in 257 trades while Consumer Goods sector recorded 9.18 million units in 697 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 Medium Cap stocks according to new market segmentation topped today's market activity with 55.47% contribution to market turnover, followed by Large Cap stocks with 26.64% while Small Cap stocks stake 17.89% to come last on the chart.

Among the Large cap stocks, DANGCEM, NB and GUARANTY Plc topped the 7 traded stocks in that class while UBA, IBTC and WAPCO dominated Medium Cap of 23 traded stocks. Similarly, ASHAKACEM, GLAXOSMITH and UNITYBNK led 65 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with one loser as against two losers recorded in the previous session.

The Conglomerates sector closed with two gainers as against two gainers to one loser recorded in the previous session. Transcorp Plc closed with +2.16% gains after today’s trading session.

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

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

The Financial Services sector closed with eight gainers to nine losers as against eleven gainers to five losers recorded in the previous session. Union Bank Plc moved up by +4.75% while Goldlink Insurance Plc moved down by -4.69% loss after today’s trading session.

The Healthcare sector closed with two gainers to one loser compared to three gainers recorded in previous session.

The ICT sector closed with one loser as against any price movement in the previous session.

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

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

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

The Services sector closed with two gainers to three losers as against two gainers to two 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 +23.84% gains with FCMB recording -20.00% losses while Union Bank Plc leads the chart with +58.37% gains. However, Sterling Bank Plc recorded -13.39% losses while ETI also closed negative with -6.60% loss recorded. See the tracking table below.

Acquiring Banks