090712 Equity Market records +0.36% gain to open the week positive; sustains rally

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090712 Equity Market records +0.36% gain to open the week positive; sustains rally

As investors return from the weekend, equity market sustained positive position for the fifth consecutive session as value investing continue to permeate the bourse amid low volume turnover while market YTD performance currently stands at +7.05% as it continued to garner more weights due to the recent rally.

Nevertheless, the key benchmark indices sustained uptrend as sentiments remained positive, taking supports majorly from Medium CAP stock which was particularly driven by 7UP while small CAP stocks also contributed to the outlook recorded today due to continuous buying activities witnessed in Agriculture, Consumer Goods, Financial Services, Healthcare, Industrial Goods and Oil & Gas sector.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N25.61 billion as market sentiments remained positive. 98 equities were traded today as against previous 94 with more activities recorded in Financial Services, Agriculture, Consumer Goods, Industrial Goods, Conglomerates, Healthcare, Services, Oil & Gas, Construction/Real Estate, ICT and Natural Resources sectors.

Today, two NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips maintained uptrend by +0.45%, NSE Insurance closed with +1.84% losses while NSE Oil & Gas closed negative with -0.48%, NSE banking records -0.12% gains while NSE Food also records +1.23% gains.

At the close of trading session, the NSE All-Share Index inches up by +0.36% to close at 22,191.14 as against an upbeat by +0.28% recorded in the previous session to close at 22,110.91. In the same vein, market capitalization appreciated by N25.61 billion (US$170.69 million) to close at N7.08 trillion (US$47.21billion) as against appreciation by N19.66 billion (US$511.36 million) recorded in preceding session to close at N7.05 trillion (US$47.04billion).

The number of gainers at the close of trading session closed lower at 22 as against 24 recorded in the previous session while decliners also closed lower at fifteen (15) as against twenty-two (22) losers recorded in the previous trading day – suggesting a positive market breadth.

As usual, Financial Services sector led the market transaction volume today with 83.77 million units valued at N664.06 million (US$4.42 million) exchanged in 1,645 deals as against 109.07million units valued at N625.30 million (US4.16 million) exchanged in 1,871 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UBA, GUARANTY, ZENITHBANK, FIRSTBANK and ACCESS Plc and the total volume of 59.96 million units valued at N610.88 million traded in five stocks accounted for 43.83% of the entire market volume and their value represented 36.63% of the market’s value.

Transaction volume on the exchange moved down by -15.33% to close at 136.80 million units exchanged in 2,954 deals as against a decline by -1.24% recorded in the previous trading to close at 161.58 million units exchanged in 3,315 deals.

Also, market value appreciated by +12.34% to close at N1.66 billion (US11.11 million) as against appreciation by +0.28% recorded in the previous trading session to close at N1.48 billion (US$9.89 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 83.77 million units of shares traded in 1,645 trades within the sector, followed by Agriculture sector to come second on the chart with 16.52 million units traded in 58 trades while Consumer Goods sector recorded 13.00 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 40.98% contribution to market turnover, followed by Small Cap stocks with 33.76% while Large Cap stocks stake 25.26% 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 68 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

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

The Construction/Real Estate sector closed with one loser as against two losers recorded in the previous session.

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

The Financial Services sector closed with seven gainers to seven losers as against nine gainers to eight losers recorded in the previous session. Stanbic IBTC Bank Plc moved up by +4.82% while ETI Plc moved down by -1.91% loss after today’s trading session.

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

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

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

The Services sector closed with two gainers to one loser as against three 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 +53.54% gains with FCMB recording -14.10% losses while Union Bank Plc leads the chart with +89.00% gains. However, Sterling Bank Plc recorded -4.72% losses while ETI also closed negative with -12.17% loss recorded. See the tracking table below.

Acquiring Banks