160812 Nigerian equities tank again by -0.17% as heavy counters hit

Category: Daily & Weekly Market Updates

Read (1601)

160812 Nigerian equities tank again by -0.17% as heavy counters hit

Today, Nigerian Stocks lost ground again to extend two days losing streak in the week as pessimistic trading continued to dominate market atmosphere along with negative turnover posture despite improved breadth.

Meanwhile, further analysis reveals sustained mild price correction tendency witnessed towards blue chip stocks and heavy counters impacted market outlook.

More so, the key benchmark indices maintained southwards movement, taking hits majorly from Large CAP stocks led by Dangote Cement and Zenith Bank Plc among others while continued sell activities reigned in Financial Services sectors.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N12.19 billion as market sentiments remained negative. 114 equities were traded today as against previous 114 with more activities recorded in Financial Services, Consumer Goods, Oil & Gas, Industrial Goods, Conglomerates.

Today, three NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips pulled back by 0.04%, NSE Food closed with +0.52% gain while NSE Banking also closed with +0.71% gain while NSE Insurance records -1.74% loss, NSE Oil & Gas also dipped by- 0.61%. The New NSE LII sustained negative posture with -0.57% loss.

At the close of trading session, the NSE All-Share Index dips by -0.17% to close at 23,066.74 as against a decline by -0.09% recorded in the previous session to close at 23,105.05. In the same vein, market capitalization depreciated by N12.19 billion (US$76.22 million) to close at N7.34 trillion (US$45.88billion) as against depreciation by N5.90 billion (US$39.34 million) recorded in preceding session to close at N7.35 trillion (US$49.01billion).

The number of gainers at the close of trading session closed higher at 25 as against 17 recorded in the previous session while decliners closed lower at fifteen (15) as against twenty-four (24) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. Fidson Healthcare Plc in its Q2 ’12 result recorded positive turnover growth of +47.5% and positive PAT growth of +181.0%.

2. Law Union & Rock Insurance Plc in its Q2 ’12 result recorded negative gross premium growth of -12.4% and negative PAT growth of -122.8%.

3. Niger Insurance Plc in its Q1 ’12 result recorded positive gross premium growth of +23.9% and negative PAT growth of -22.9%.

4. Intercontinental Wapic Insurance Plc Q2 ’12 result recorded negative gross premium growth of -21.5% and negative PAT growth of -42.7%.

As usual, Financial services sector led the market transaction volume today with 113.40 million units valued at N605.33 million (US$4.03 million) exchanged in 2,030 deals as against 176.87 million units valued at N1.25 billion (US8.37 million) exchanged in 2,168 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of DIAMONDBNK, IBTC, NEM, FIRSTBANK and GUARANTY Plc and the total volume of 59.32 million units valued at N405.12 million traded in five stocks accounted for 42.34% of the entire market volume and their value represented 32.24% of the market’s value.

Transaction volume on the exchange plunged by -39.60% to close at 140.10 million units exchanged in 3,474 deals as against an upbeat by +12.10% recorded in the previous trading to close at 231.98 million units exchanged in 3,757 deals.

Also, market value depreciated by -23.70% to close at N1.25 billion (US7.85 million) as against appreciation by +21.81% recorded in the previous trading session to close at N1.64 billion (US$10.97 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 113.40 million units of shares traded in 2,030 trades within the sector, followed by Consumer Goods sector to come second on the chart with 7.64 million units traded in 653 trades while Oil & Gas sector recorded 5.57 million units in 235 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 47.62% contribution to market turnover, followed by Small Cap stocks with 32.65% while Large Cap stocks stake 19.72% to come last on the chart.

Among the Large cap stocks, FIRSTBANK, GUARANTY and ZENITHBANK Plc topped the 7 traded stocks in that class while DIAMONDBNK, IBTC and UBA dominated Medium Cap of 24 traded stocks. Similarly, NEM, WEMABANK and STERLNBANK led 83 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

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

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

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

The Financial Services sector closed with seven gainers to six losers as against four gainers to eleven losers recorded in the previous session. Intercontinental Wapic Insurance Plc moved up by +3.77% while Continental Re-Insurance Plc moved down by -4.76% loss after today’s trading session.

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

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

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

The Services sector closed with four gainers to one loser as against two 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 -23.08% losses while Union Bank Plc leads the chart with +130.62% gains. However, Sterling Bank Plc recorded -18.90% losses while ETI also closed negative with -12.60% loss recorded. See the tracking table below.

Acquiring Banks