040712 NSE Index firms up by +1.11% as market sentiments remain optimistic

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040712 NSE Index firms up by +1.11% as market sentiments remain optimistic

The bulls continue to dominate market activities for the second consecutive session due to intense positive deals witnessed across the main board while the key market indicator garnered more weight to suggest that it may close above 22,000 psychological lines soonest.

Nevertheless, the key benchmark indices maintained uptrend as sentiments remained positive, taking supports majorly from Medium CAP stock which was particularly driven by ACCESS while Large CAP stocks also contributed to the outlook recorded today due to intense buying activities witnessed in Consumer Goods and Financial Services sectors.

In the same vein, the market capitalization of 187 first-tier equities appreciated by N76.62 billion as market sentiments remained positive. 125 equities were traded today as against previous 117 with more activities recorded in Financial Services, Consumer Goods, ICT, Conglomerates, Services, Natural Resources, Healthcare, Oil & Gas, Industrial Goods, Agriculture, and Construction/Real Estate sectors.

Today, all five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips maintained uptrend by +1.35%, NSE Insurance closed with +0.02% marginal gains while NSE Oil & Gas closed positive with +1.21%, NSE banking records +2.06% gains while NSE Food also records +1.50% gains.

At the close of trading session, the NSE All-Share Index inches up by +1.11% to close at 21,930.90 as against an upbeat by +0.55% recorded in the previous session to close at 21,690.54. In the same vein, market capitalization appreciated by N76.72 billion (US$511.36 million) to close at N7.00 trillion (US$46.65billion) as against appreciation by N37.94 billion (US$252.91 million) recorded in preceding session to close at N6.92 trillion (US$46.14billion).

The number of gainers at the close of trading session closed higher at 36 as against 27 recorded in the previous session while decliners closed flat at twenty-one (21) as against twenty-one (21) losers recorded in the previous trading day – suggesting a positive market breadth.

Today, the following companies presented their results

1. Studio Press Plc in its Q1 2012 result recorded negative turnover growth of -23.06% and negative PAT growth of -388.35%.

2. Royal Exchange Plc in its Audited 2011 result recorded negative turnover growth of +59.25% and negative PAT growth of -61.09%.

As usual, Financial Services sector led the market transaction volume today with 171.33 million units valued at N1.00 billion (US$6.69 million) exchanged in 2,537 deals as against 141.71 million units valued at N875.06 million (US5.83 million) exchanged in 2,196 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of UBA, FIRSTBANK, CONTINSURE, GUARANTY and ZENITHBANK Plc and the total volume of 98.30 million units valued at N826.93 million traded in five stocks accounted for 36.38% of the entire market volume and their value represented 36.20% of the market’s value.

Transaction volume on the exchange moved up by +31.20% to close at 270.21 million units exchanged in 4,300 deals as against a decline by -1.84% recorded in the previous trading to close at 205.95 million units exchanged in 3,792 deals.

Also, market value appreciated by +42.80% to close at N2.28 billion (US15.22 million) as against depreciation by -2.14% recorded in the previous trading session to close at N1.59 billion (US$10.66 million).

Sectoral Performance (According to New Market Segmentation)
Financial Services sector led the market sectoral performance with 171.33 million units of shares traded in 2,537 trades within the sector, followed by Consumer Goods sector to come second on the chart with 27.06 million units traded in 760 trades while ICT sector recorded 20.63 million units in 17 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 Small Cap stocks according to new market segmentation topped today's market activity with 42.00% contribution to market turnover, followed by Medium Cap stocks with 37.14% while Large Cap stocks stake 20.86% 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, HONYFLOUR and UNITYBNK led 94 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 two gainers recorded in the previous session.

The Conglomerates sector closed with two gainers to one loser as against two losers recorded in the previous session. Transcorp Plc closed with +2.04% price appreciations after today’s trading session.

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

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

The Financial Services sector closed with fourteen gainers to six losers as against nine gainers to seven losers recorded in the previous session. Access Bank Plc moved up by +5.00% while Wapic Insurance Plc moved down by -5.00% loss after today’s trading session.

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

The Services sector closed with one gainer to four losers as against four 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 +44.24% gains with FCMB recording -14.36% losses while Union Bank Plc leads the chart with +81.82% gains. However, Sterling Bank Plc recorded -7.87% losses while ETI also closed negative with -10.37% loss recorded. See the tracking table below.

Acquiring Banks