Daily Stock News (Aug 17,2011)

Today, the uptrend continues on the bourse as market activities ended on positive notes for the second time in the week amid sustained weak breadth while the market indicators closed mixed with waning bargain tendency- an indication of pessimistic trading, ridding on the weak commitment observed yesterday.

More so, the key benchmark indices defied the growing bearish tendency to close with a modest gain of 0.08%, taking sustained support from banking, Insurance and Oil & Gas stocks while Blue chips and Food & Beverages stocks closed with bears.
To this regard, we resound cautious treading for investors as commitment in the market remained weak and low.

The positive market sentiment witnessed in Automobiles, Banking, Building Materials, Commercial Services, Construction, Hotel & Tourism, ICT, Leasing, Maritime, Petroleum Marketing and Insurance impacted the outlook recorded today. Meanwhile, moderate selling was witnessed in Breweries, Other Financial Institutions, Conglomerates, Food & Beverages, Healthcare, Packaging and Printing & Publishing sectors.

In the same vein, the market capitalization of 199 first-tier equities appreciated by N6.18billion as the sentiments recorded a positive outlook. 103 equities were traded today as against previous 100 with more activities recorded in Banking, Insurance, Conglomerates, Automobile, Breweries, Commercial Services, Construction, Petroleum, Food & Beverages, Other Financial Institutions, ICT, Packaging, Building Materials and Maritime.

The Shares prices of Afribank Plc, Spring Bank Plc and Bank PHB Plc remained stagnant as a result of the Full Suspension placed on them following the nationalization while Intercontinental Bank Plc, FinBank Plc, Oceanic Bank Plc and Union Bank Plc also experienced no price movement due to the Technical Suspension following the signing of their Transaction Implementation Agreement. In addition, analysis revealed that -5.00% loss was recorded by Wema Bank Plc while Unity Bank Plc also recorded -1.64% loss as normal trading activities continued on them.

Today, three out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips moved down marginally by -0.03%, NSE Banking inches up by +0.62%, NSE Food & Beverages moved down by -0.64% and NSE Oil & Gas closed positive with +0.51% while NSE Insurance also closed positive by+0.76%.

At the close of trading session, the NSE All-Share Index inches up marginally by +0.08% to close at 22,811.39 as against an upbeat by +1.03% recorded in the previous session to close at 22,792.06.  In the same vein, market capitalization appreciated byN6.18billion (US41.20million) to close at N7.29trillion (US$48.64billion) as against appreciation by N74.52billion (US$496.86million) recorded on preceding session to close at N7.29trillion (US$48.60billion).

The number of gainers at the close of trading session closed lower at 22 compared with (21) gainers recorded in the previous session while decliners closed higher at twenty-one (21) as against fifteen (15) losers recorded in the previous trading day – suggesting a weak market breadth.

The following companies presented their results

1. Access Bank Plc: in its Q2 2011 result recorded positive gross earnings growth by 6.19% and positive PAT growth by 21.20%. Dividend of 20k was proposed with closure of 7th September, 2011. The payment date is 21st September, 2011
2. Nigerian Ropes Plc: in its Q2 2011 result recorded positive turnover growth by 32.53% and positive PAT growth by 187.04%.
3. Cement Co. of Northern Nigeria Plc: in its Q2 2011 result recorded positive turnover growth by 10.54% and positive PAT growth by 106.63%.

As usual, Banking sector led the market transaction volume today with 122.51 million units valued at N768.40billion (US$5.12million) exchanged in 2,173 deals as against 174.40 million units valued at N1.33billion (US$8.87million) exchanged in 3,392 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of Guaranty Trust Bank, First Bank, UBA, Oceanic Bank and Access Bank Plc and the total volume of 93.68 million units valued at N629.02million traded in the shares of five stocks accounted for 47.94% of the entire market volume and their value represented 25.92% of the market’s value.

Transaction volume on the exchange moved down by 43.64% to close at 195.42 million units exchanged in 4,283 deals as against negative position of 8.65% recorded in the previous trading to close at 346.77 million units exchanged in 4,613 deals.

Also, market value appreciated by 17.41% to close at N2.42billion (US$16.17million) as against appreciation by 34.08% recorded in the previous trading session to close at N2.06billion (US$13.77million)

SECTORAL REVIEW

The Agriculture/Agro-Allied sector closed with no price movement just as no price movement was also recorded on Tuesday. All stocks in the sector closed flat after today’s trading session.

The Air Services sector recorded no price movement compared with no price movement was also recorded on previous trading day. All stocks in the sector closed flat after today’s trading session.

The Banking sector closed today with seven (7) gainers to six (6) losers compared with eight (8) gainers to three (3) losers recorded on previous trading day. Ecobank Plc moved up by +4.85% to top the gainers’ chart while Wema Bank Plc moved down by -5.00% to the losers’ chart after today’s trading session.

The Breweries sector closed with two losers to one unchanged price compared with one loser to two unchanged prices was also recorded on previous trading day. International Breweries and Guinness Nigerian Plc both closed negative with -0.33% and -0.23% loss recorded while Nigeria Breweries Plc closed flat after today’s trading session.

The Building materials sector, today, closed with one gainer to one loser compared with two gainers to one loser recorded on previous trading day. Cement Co. of Northern Nigeria Plc moved upwards by +0.63% while Lafarge WAPCO Plc moved down by -0.11% after today’s trading session.

The Conglomerates sector recorded one gainer to two losers compared with one loser to six unchanged prices recorded on Tuesday. UAC of Nigeria Plc moved up marginally by +0.03% while Transcorp Plc closed negative with -4.60% loss after today’s trading session.

The Food and Beverages sector closed with one gainer to two losers compared with two gainers to three losers recorded on previous trading day. NASCON Plc closed positive with +0.91% while Dangote Sugar Refinery Nigeria Plc closed negative with -3.48% loss recorded after today’s trading session.

The Insurance sector closed with three gainers to two losers compared with four gainers to one loser recorded on previous trading day.

The Petroleum sector records one gainer to seven unchanged prices compared with one gainer to one loser recorded on Tuesday. Oando Plc moved up by +1.75% while Eterna Oil Plc and six other stocks closed flat after today’s trading session.

Source via proshareng.com