160712 NSE Index records +1.04% gains; sustains northwards movement

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160712 NSE Index records +1.04% gains; sustains northwards movement

As investors return from the weekend, Nigerian Stock Market sustained uptrend to close market activities positive for the fourth session in a row due to continuous bargain activities witnessed on the bourse despite low market turnover observed while market breadth closed impressive as against previous outlook.

Nevertheless, the key benchmark indices maintained uptrend as sentiments remained positive, taking supports majorly from Large CAP stocks which was particularly driven by ZENITHBANK while Medium CAP stocks also contributed to the outlook recorded today due to continuous bargain activities witnessed in Conglomerates, Financial Services, Healthcare, Industrial Goods and Oil & Gas sectors.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N75.68 billion as market sentiments remained optimistic. 96 equities were traded today as against previous 118 with more activities recorded in Financial Services, Conglomerates, Consumer Goods, Oil & Gas, Industrial Goods, Construction/Real Estate, Services, Agriculture, Healthcare, Natural Resources and ICT sectors.

Today, all NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips maintained uptrend by +1.44%, NSE Insurance closed with +0.88% gains while NSE Oil & Gas also closed positive with +0.81% gains, NSE banking records +2.95% gains while NSE Food also records +0.62% gains.

At the close of trading session, the NSE All-Share Index inches up by +1.04% to close at 22,978.14 as against an upbeat by +1.10% recorded in the previous session to close at 22,741.06. In the same vein, market capitalization appreciated by N75.68 billion (US$504.38 million) to close at N7.33 trillion (US$48.88billion) as against appreciation by N79.20 billion (US$283.48 million) recorded in preceding session to close at N7.25 trillion (US$48.38billion).

The number of gainers at the close of trading session closed higher at 33 as against 24 recorded in the previous session while decliners closed lower at thirteen (13) as against eighteen (18) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following company presented its result

1. Skye Bank Plc in its Q2 ’12 result recorded positive turnover growth of +22.00% and positive PAT growth of +39.8%.

As usual, Financial Services sector led the market transaction volume today with 215.79 million units valued at N792.19 million (US$5.27 million) exchanged in 2,414 deals as against 364.81 million units valued at N934.87 million (US6.23 million) exchanged in 2,070 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of FIDELITYBK, NEM, UBA, FIRSTBANK and DIAMONDBNK Plc and the total volume of 151.12 million units valued at N362.65 million traded in five stocks accounted for 55.87% of the entire market volume and their value represented 26.90% of the market’s value.

Transaction volume on the exchange moved down by -38.97% to close at 270.48 million units exchanged in 4,129 deals as against an upbeat by +75.66% recorded in the previous trading to close at 443.18 million units exchanged in 3,511 deals.

Also, market value depreciated by -6.28% to close at N1.34 billion (US8.98 million) as against depreciation by -10.81% recorded in the previous trading session to close at N1.43 billion (US$9.58 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 215.79 million units of shares traded in 2,414 trades within the sector, followed by Conglomerates Goods sector to come second on the chart with 29.39 million units traded in 162 trades while Consumer Goods sector recorded 11.15 million units in 821 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 53.88% contribution to market turnover, followed by Small Cap stocks with 33.47% while Large Cap stocks stake 12.65% 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 WAPCO dominated Medium Cap of 24 traded stocks. Similarly, ASHAKACEM, STERLNBANK and UNITYBNK led 65 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

The Conglomerates sector closed with one gainer as against two gainers recorded in the previous session. Transcorp Plc closed positive with +4.76% gains after today’s trading session.

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

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

The Financial Services sector closed with ten gainers to six losers as against eleven gainers to four losers recorded in the previous session. Royal Exchange Plc moved up by +4.00% while Union Bank Plc moved down by -4.95% loss after today’s trading session.

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

The ICT sector closed with no price movement compared with no price movement recorded in previous session.

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

The Services sector closed with four gainers as against two gainers to three 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 +61.01% gains with FCMB recording -14.10% losses while Union Bank Plc leads the chart with +111.48% gains. However, Sterling Bank Plc recorded -1.57% losses while ETI also closed negative with -12.08% loss recorded. See the tracking table below.

Acquiring Banks