070812: Bleeding continues, Nigerian stocks fall again by -0.11%

Category: Daily & Weekly Market Updates

Read (1354)

070812: Bleeding continues, Nigerian stocks fall again by -0.11%

Today, pessimistic trading continued on the Nigerian bourse for the second day as stocks extend losses by 26.87 basis points while investors increased tempo towards profiteering, putting weak market breadth under pressure as stocks opened flat and maintained below-the-line activities throughout the volatile session. The outlook recorded today came in line with our previous position as we had hinted yesterday.

More so, further analysis suggests that downtrend may halt soon, considering the last minutes rally observed. Nevertheless, cautious bargain approach is advised as investors bargain strength remained weak.

Furthermore, the key benchmark indices slipped again to extend the southward trend by -0.11%, taking major hits from Agriculture, Conglomerates, Natural Resources and Industrial Goods sectors while bargains witnessed in Oil & Gas sector coupled with impressive rally observed in Banking and Insurance sub-sectors failed to salvage the day.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N88.55 billion as market sentiments remained negative. 108 equities were traded today as against previous 105 with more activities recorded in Financial Services, Oil & Gas, Conglomerates, Consumer Goods, Industrial Goods, ICT, 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 slipped again by -0.20%, NSE Consumer Goods plunged by -1.03% while NSE Banking erased previous loss by 0.53%, NSE Oil & Gas gained by +0.40% NSE Insurance retraced 1.44% while the New NSE LII erased previous gain by -0.59%.

At the close of trading session, the NSE All-Share Index dipped further by -0.11% to close at 23,391.79 as against a dip by -0.44% recorded in the previous session to close at 23,418.66. In the same vein, market capitalization depreciated by N8.55 billion (US$53.45 million) to close at N7.44trillion (US$46.53billion) as against depreciation by N33.25 billion (US$46.25 million) recorded in preceding session to close at N7.45 trillion (US$46.58billion).

The number of gainers at the close of trading session closed higher at 23 as against 21 recorded in the previous session while decliners closed higher at twenty-one (21) as against nineteen (19) losers recorded in the previous trading day – suggesting a weak market breadth.

Today, the following companies presented their results

1. International Breweries Plc in its Q2 ’12 result recorded positive turnover growth of +28.7% and positive PAT growth of +1276.7%.

2. Forte Oil Plc in its Q2 ’12 result recorded negative revenue growth of -19.1% and positive PAT growth of +159.1%.

3. Capital Hotels Plc in its Q2 ‘12 result recorded negative turnover growth of -8.8% and negative PAT growth of -15.3%.

As usual, Financial services sector led the market transaction volume today with 256.47 million units valued at N2.24 billion (US$14.95 million) exchanged in 2,521 deals as against 1504.00 million units valued at N1.401 billion (US8.75million) exchanged in 2,185 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of First Bank, Zenith Bank, Diamond Bank Plc, Guaranty and Sterling Bank and the total volume of 187.43 million units valued at N2.07 billion traded in five stocks accounted for 59.08% of the entire market volume and their value represented 74.17% of the market’s value.

Transaction volume on the exchange moved up by 68.72% to close at 317.24 million units exchanged in 4,388 deals as against a decline by -9.35% recorded in the previous trading to close at 188.02 million units exchanged in 3,661 deals.

Also, market value appreciated by +59.46% to close at N2.80 billion (US17.51 million) as against depreciation by -25.38% recorded in the previous trading session to close at N1.75 billion (US$10.93 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 256.47 million units of shares traded in 2,521 trades within the sector, followed by Oil & Gas sector to come second on the chart with 26.20 million units traded in 240 trades while Conglomerates sector recorded 9.87 million units in 204 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 45.46% contribution to market turnover, followed by Small Cap stocks with 30.11% while Medium Cap stocks stake 24.43% to come last on the chart.

Among the Large cap stocks, FIRSTBANK, ZENITHBANK and GUARANTY Plc topped the 7 traded stocks in that class while DIAMOND BANK, UBA and TRANSCORP dominated Medium Cap of 24 traded stocks. Similarly, JAPAULOIL, STERLNBANK and LASACO led 77 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

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

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

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

The Financial Services sector closed with eight gainers to six losers as against nine gainers to eight losers recorded in the previous session. CONTINSURE led the gainers again by +4.69% while ROYALEX Plc led the losers by -5.00% loss after today’s trading session.

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

The ICT sector closed with one gainer compared with its flat position recorded in previous session.

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

The Natural Resources sector closed with one loser as against flat position recorded in previous session.

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

The Services sector closed with three gainers to two losers 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 +51.92% gains with FCMB recording -20.51% losses while Union Bank Plc leads the chart with +117.70% gains. However, Sterling Bank Plc recorded -14.17% losses while ETI also closed negative with -12.60% loss recorded. See the tracking table below.

Acquiring Banks