060812 Market opens the week bearish, All-Share Index pulls back by -0.44%

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060812 Market opens the week bearish, All-Share Index pulls back by -0.44%

Nigerian stocks halt three days gaining streak to open the new week on bearish note as sentiments turned negative. Market succumbed to sell pressure considerably on the back of weak bargain posture witnessed across the board.

The outlook suggests price retracement as market erased previous gain completely while trading within overbought range. To this regard, a cautious approach is advised as market price volatility may gain tempo in the coming periods.

Also, the key benchmark indices pulled back by 77 basis points, taking hits majorly from Industrial Goods, Financial Services, Conglomerate, Oil & Gas and among other active sectors on the bourse.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N33.25 billion as market sentiments turned negative. 105 equities were traded today as against previous 113 with more activities recorded in Financial Services, Consumer Goods, Conglomerates, Oil & Gas, ICT, Industrial Goods, Services, Healthcare, Agriculture and Construction/Real Estate sectors.

Today, all NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips retraced uptrend by -0.58%, NSE Consumer Goods pulled back by -1.11% while NSE Banking closed with -0.33%, NSE Insurance fell -0.33% while the New NSE LII, the only gainer, sustained positive posture with +0.01% gains.

At the close of trading session, the NSE All-Share Index plunged by -0.44% to close at 23,418.66 as against an upbeat by 0.15% recorded in the previous session to close at 23,523.16. In the same vein, market capitalization depreciated by N33.25 billion (US$207.87 million) to close at N7.45 trillion (US$46.58billion) as against appreciation by N10.93 billion (US$68.35 million) recorded in preceding session to close at N7.48 trillion (US$46.79billion).

The number of gainers at the close of trading session closed lower at 21 as against 22 recorded in the previous session while decliners closed higher at nineteen (19) as against twenty-six (26) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. Conoil Plc in its Q2 ’12 result recorded negative turnover growth of -4.6% and negative PAT growth of -81.1%.

2. Aluminum Extrusion Industries Plc in its Q2 ’12 result recorded negative revenue growth of -0.1% and positive PAT growth of +35.7%.

3. Nigerian Aviation Handling Co. Plc in its Q2 ‘12 result recorded negative turnover growth of -7.9% and negative PAT growth of -42.0%.

4. Consolidated Hallmark Insu. Plc in its Q2 ‘12 result recorded positive gross premium growth of +31.1% and negative PAT growth of -53.7%.

5. Continental Reinsurance Plc in its Q2 ‘12 result recorded positive gross premium growth of +6.8% and positive PAT growth of 88.1%.

As usual, Financial services sector led the market transaction volume today with 150.00 million units valued at N1.401 billion (US$8.75 million) exchanged in 2,185 deals as against 164.01 million units valued at N1.42 billion (US8.90million) exchanged in 2,191 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of Zenith Bank, Guaranty, Fidelity Bank, Sterling Bank and Diamond bank Plc and the total volume of 106.61 million units valued at N1.19 billion traded in five stocks accounted for 56.70% of the entire market volume and their value represented 67.93% of the market’s value.

Transaction volume on the exchange moved down by -9.35% to close at 188.02 million units exchanged in 3,661 deals as against an upbeat by +88.90% recorded in the previous trading to close at 207.42 million units exchanged in 3,738 deals.

Also, market value depreciated by -25.38% to close at N1.75 billion (US10.93 million) as against appreciation by 126.62% recorded in the previous trading session to close at N2.35 billion (US$14.71 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 150.00 million units of shares traded in 2,185 trades within the sector, followed by Conglomerates sector to come second on the chart with 14.46 million units traded in 160 trades while Consumer Goods sector recorded 10.93 million units in 635 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 Large Cap stocks according to new market segmentation topped today's market activity with 41.88% contribution to market turnover, followed by Medium Cap stocks with 36.93% while Small Cap stocks stake 21.19% to come last on the chart.

Among the Large cap stocks, ZENITH, GUARANTY and FIRSTBANK Plc topped the 7 traded stocks in that class while TRANSCORP, FIDELITY and DIAMOND dominated Medium Cap of 24 traded stocks. Similarly, STERLNBANK, WEMABANK and CONTINSURE led 74 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

The Conglomerates sector closed with one gainer as against two gainers to two losers recorded in the previous 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 four eight to four losers recorded in previous session.

The Financial Services sector closed with nine gainers to eight losers as against three gainers to nine losers recorded in the previous session. CONTINSURE moved up by +4.92% while WAPIC Plc moved down by -4.76% loss after today’s trading session.

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

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

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

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

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

The Services sector closed with two gainers to three losers as against one gainer 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 +51.52% gains with FCMB recording -23.08% losses while Union Bank Plc leads the chart with +115.31% gains. However, Sterling Bank Plc recorded -10.24% losses while ETI also closed negative with -12.60% loss recorded. See the tracking table below.

Acquiring Banks