080812: Stocks edge lower by -0.96% for third day as sell-side revved up

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080812: Stocks edge lower by -0.96% for third day as sell-side revved up

Nigerian market extends two days losing streak as sell-sides revved up amid sustained low optimism while profit-taking tendency continued to overwhelm the moderate bargain tendency observed on the board while sentiments remained unfavourable.

Also, the sustained weak breadth and continued pessimistic activities towards blue chips and big counters impacted market outlook significantly while the market volume turnover and Naira votes dipped considerably by -40.00% and -43.09% respectively.

Furthermore, the key benchmark indices shed above 200 basis points on the back of unrelenting sell activities witnessed in the last three days, taking major hits from Consumer goods, Financials Services and Industrial Goods while improved rally witnessed in Oil & Gas, Healthcare, Constructions and Conglomerates sectors could not save the day.

In the same vein, the market capitalization of 187 first-tier equities depreciated by N71.68 billion as market sentiments remained negative. 117 equities were traded today as against previous 108 with more activities recorded in Financial Services, Consumer Goods, Oil & Gas, Conglomerates and Oil & Gas sectors.

Today, all NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips slipped again by -0.69%, NSE Consumer Goods plunged by -0.61% while NSE Banking sustained uptrend previous by 0.73%, NSE Oil & Gas pull back by -0.10%, NSE Insurance fell by -1.33% while the New NSE LII slipped further by -1.41%.

At the close of trading session, the NSE All-Share Index dipped further by -0.96% to close at 23,166.58 as against a dip by -0.11% recorded in the previous session to close at 23,391.79. In the same vein, market capitalization depreciated by N71.68 billion (US$448.00 million) to close at N7.37trillion (US$46.08billion) as against depreciation by N8.55 billion (US$53.45 million) recorded in preceding session to close at N7.44trillion (US$46.53billion).

The number of gainers at the close of trading session closed lower at 22 as against 23 recorded in the previous session while decliners also closed lower at nineteen (19) as against twenty-one (21) losers recorded in the previous trading day- suggesting weak breadth.

Today, the following companies presented their results

1. Portland Paints & Products Nig Plc in its Q2 ’12 result recorded positive turnover growth of +29.8% and positive PAT growth of +24.7%.

2. Pharma Deko Plc in its Q2 ’12 result recorded negative turnover growth of -21.2% and negative PAT growth of -92.1%.

3. Aiico Insurance Plc in its Q2 ‘12 result recorded positive gross premiums growth of +20.4% and positive PAT growth of +7.4%.

Also, Forte Oil Plc forecasts turnover of 72.9billion and PAT of 952.06million for its Q3’12 financial period.

As usual, Financial services sector led the market transaction volume today with 158.27 million units valued at N1.16 billion (US$7.23 million) exchanged in 2,521 deals as against 256.47 million units valued at N2.24 billion (US$14.95 million) exchanged in 2,521 recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of GUARANTY, DIAMONDBNK, FIRSTBANK, UBA and FCMB and the total volume of 96.20 million units valued at N 304.17 million traded in five stocks accounted for 50.5% of the entire market volume and their value represented 19.1% of the market’s value.

Transaction volume on the exchange moved down by 40% to close at 190.36 million units exchanged in 3,926 deals as against up by 68.72% recorded in the previous trading to close at 317.24 million units exchanged in 4,388 deals.

Also, market value depreciated by -43.06% to close at N1.59 billion (US9.98 million) as against appreciation by +59.46% recorded in the previous trading session to close at N2.80 billion (US17.51 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 158.27 million units of shares traded in 2,342 trades within the sector, followed by Consumer Goods sector to come second on the chart with 8.96 million units traded in 750 trades while Conglomerates sector recorded 6.52 million units in 119 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 70.59% contribution to market turnover, followed by Medium Cap stocks with 23.45% while Small Cap stocks stake 5.96% to come last on the chart.

Among the Large cap stocks, GUARANTY Plc, ZENITHBANK and FIRSTBANK, and topped the 7 traded stocks in that class while UBA, ACCESS and UNILEVER dominated Medium Cap of 24 traded stocks. Similarly, ASHAKACEM, UNITYBANK and GTASSURE led 86 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

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

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

The Financial Services sector closed with nine gainers to six losers as against eight gainers to six losers recorded in the previous session.

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

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

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

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

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

The Services sector closed with three gainers to one loser as against with three 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 +53.74% gains with FCMB recording -21.28% losses while Union Bank Plc leads the chart with +126.32% gains. However, Sterling Bank Plc recorded -14.17% losses while ETI also closed negative with -10.88% loss recorded. See the tracking table below.

Acquiring Banks