050712 ASI inches up by +0.54% to close above 22,000 psychological lines

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050712 ASI inches up by +0.54% to close above 22,000 psychological lines

Trading activities on the Nigerian bourse closed positive to sustain the rally for the third day in succession as profitable transactions continue across the main board while the key benchmark indicator closed above 22,000 psychological lines as envisaged in our previous report.

Nevertheless, the key benchmark indices sustained uptrend as sentiments remained positive, taking supports majorly from Medium CAP stock which was particularly driven by FIDELITYBK while Large CAP stocks also contributed to the outlook recorded today due to continuous buying activities witnessed in Financial Services sector.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N37.79 billion as market sentiments remained positive. 105 equities were traded today as against previous 117 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Agriculture, Oil & Gas, Healthcare, Services, Industrial Goods, Construction/Real Estate sectors. Natural Resources and ICT sectors

Today, four NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips maintained uptrend by +0.74%, NSE Insurance closed with +0.40% gains while NSE Oil & Gas closed negative with -1.12%, NSE banking records +0.69% gains while NSE Food also records +1.14% gains.

At the close of trading session, the NSE All-Share Index inches up by +0.54% to close at 22,049.30 as against an upbeat by +1.11% recorded in the previous session to close at 21,930.90. In the same vein, market capitalization appreciated by N37.79 billion (US$251.89 million) to close at N7.03 trillion (US$46.91billion) as against appreciation by N76.72 billion (US$511.36 million) recorded in preceding session to close at N7.00 trillion (US$46.65billion).

The number of gainers at the close of trading session closed lower at 28 as against 36 recorded in the previous session while decliners also closed lower at fifteen (15) as against twenty-one (21) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. Nigerian Bags Manufacturing Co. Plc in its Audited 2011 result recorded positive turnover growth of +30.3% and positive PAT growth of +35.4%.

2. Universal Insurance Plc in its Audited 2011 result recorded positive turnover growth of +21.9% and positive PAT growth of +110.6%.

As usual, Financial Services sector led the market transaction volume today with 122.27 million units valued at N1.00 billion (US$6.70 million) exchanged in 2,040 deals as against 171.733million units valued at N1.00 billion (US6.69 million) exchanged in 2,537 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of ZENITHBANK, UBA, FIRSTBANK, FIDELITYBK and DIAMONDBAK Plc and the total volume of 88.01 million units valued at N794.93 million traded in five stocks accounted for 55.30% of the entire market volume and their value represented 52.89% of the market’s value.

Transaction volume on the exchange moved down by -41.10% to close at 159.15 million units exchanged in 3,437 deals as against an upbeat by +31.20% recorded in the previous trading to close at 270.21 million units exchanged in 4,300 deals.

Also, market value depreciated by -34.20% to close at N1.50 billion (US10.01 million) as against appreciation by +42.80% recorded in the previous trading session to close at N2.28 billion (US$15.22 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 122.27 million units of shares traded in 2,040 trades within the sector, followed by Conglomerates sector to come second on the chart with 12.14 million units traded in 144 trades while Consumer Goods sector recorded 10.40 million units in 596 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 46.72% contribution to market turnover, followed by Large Cap stocks with 37.01% while Small Cap stocks stake 16.27% 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, ACCESS and IBTC dominated Medium Cap of 23 traded stocks. Similarly, ASHAKACEM, GLAXOSMITH and UNITYBNK led 75 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

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

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

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

The Financial Services sector closed with fifteen gainers to one loser as against fourteen gainers to six losers recorded in the previous session. Fidelity Bank Plc moved up by +4.88% while Zenith Bank Plc moved down by -3.70% loss after today’s trading session.

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

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

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

The Services sector closed with four losers as against 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 +50.71% gains with FCMB recording -10.51% losses while Union Bank Plc leads the chart with +81.82% gains. However, Sterling Bank Plc recorded -3.94% losses while ETI also closed negative with -9.17% loss recorded. See the tracking table below.

Acquiring Banks