Daily Stock News (Aug 29,2011)

Today, the year to date market performance plunged further with a significant weight loss while equity market closed with the bears as investors’ appetite continued to dry-out with extended bearish sentiments dominating market activities.

More so, the market indicators dropped considerably as ASI shed above 400 basis points while volume and value turnover moved down by -69.89% and -53.07% respectively- the falling momentum indicates a falling knife pattern, which signifies a severe bearish trend is about to hit the market.

Furthermore, the key benchmark indices closed negative to continue the downwards movement, taking hits majorly from Blue Chips, Banking, Insurance, Building Materials and Oil & Gas stocks as majority of NSE sectoral indices retraced to post negative figures while NSE Oil & Gas closed flat.

The negative sentiment witnessed in Banking, Breweries, Building Materials, Chemical & Paints, Conglomerates, Food & Beverages, Industrial & Domestic Products, Insurance, Mortgage Company and Petroleum Marketing sectors impacted the outlook recorded today. Meanwhile moderate buying activities was witnessed in Agriculture, Computer & Office Equipment, Construction, Hotel & Tourism and Printing & Publishingsectors.

In the same vein, the market capitalization of 199 first-tier equities depreciated by N153.30billion as the sentiments recorded a negative outlook. 108 equities were traded today as against previous 104 with more activities recorded in Banking, Insurance, Conglomerates, Second-Tier, Breweries, Petroleum Marketing, Food & Beverages, ICT, 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 Wema Bank Plc closed flat while Unity Bank Plc also closed flat loss as normal trading activities continued on them.

Today, four of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips moved down by -2.15%, NSE Banking dips by -2.51%, NSE Food & Beverages moved down by -1.22% and NSE Oil & Gas closed flat while NSE Insurance closed negative with -0.73%.

At the close of trading session, the NSE All-Share Index dipped by -2.18% to close at 21,497.61 as against a decline by -0.38% recorded in the previous session to close at 21,976.87.  In the same vein, market capitalization depreciated by N153.30billion (US1.02billion) to close at N6.87trillion (US$44.84billion) as against depreciation by N26.97billion (US$179.85million) recorded on preceding session to close at N7.02trillion (US$46.86billion).

The number of gainers at the close of trading session closed lower at 10 compared with (12) gainers recorded in the previous session while decliners closed higher at twenty-six (26) as against twenty-four (24) losers recorded in the previous trading day – suggesting a negative market breadth.
The following company presented its result

1. Multi-Trex Integrated Foods Plc: in its Audited 2011 result recorded positive turnover growth by 116.9% and negative PAT growth by 69.8%

As usual, Banking sector led the market transaction volume today with 70.91 million units valued at N409.74million (US$2.73million) exchanged in 1,939 deals as against 241.55 million units valued at N1.02billion (US$6.84million) exchanged in 1,927 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of Fidelity Bank, Guaranty Trust Bank, Diamond Bank, Access Bank and First Bank Plc and the total volume of 44.00 million units valued at N285.09million traded in the shares of five stocks accounted for 27.22% of the entire market volume and their value represented 37.49% of the market’s value.

Transaction volume on the exchange moved down by 69.89% to close at 161.66 million units exchanged in 3,220 deals as against positive position of 71.54% recorded in the previous trading to close at 536.87 million units exchanged in 3,440 deals.

Also, market value depreciated by 53.07% to close at N760.52million (US$5.07million) as against depreciation by 5.14% recorded in the previous trading session to close at N1.62billion (US$10.80million)

SECTORAL REVIEW

The Agriculture/Agro-Allied sector closed with one gainer to two unchanged prices compared with as no price movement recorded on Friday. Presco Plc moved up by +0.27% while FTN Cocoa Processors and Livestock Feeds Plc closed flat after today’s trading session.

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

The Banking sector closed today with two (2) gainers to ten (10) losers compared with two (2) gainers to nine (9) losers recorded on previous trading day. Ecobank Plc moved up by +4.55% to top the gainers’ chart while Skye Bank Plc moved down by -4.91% to top the losers’ chart after today’s trading session.

The Breweries sector closed with one loser to one unchanged price compared with no price movement recorded on previous trading day. Nigerian Breweries Plc moved down by -1.20% while Guinness Nigeria Plc closed flat after today’s trading session.

The Building materials sector, today, closed with two losers to two unchanged prices compared with one gainer to one loser recorded on previous trading day. Dangote Cement and Cement Co. of Northern Nigeria Plc both moved down by -5.00% and -4.99% respectively while Ashaka Cement and Lafarge WAPCO Plc closed flat after today’s trading session.

The Conglomerates sector recorded two losers to two unchanged prices compared with one loser to four unchanged prices recorded on Friday. Transcorp Plc moved down by -4.49% while PZ Plc also moved in the same direction with -3.23% loss recorded after today’s trading session.

The Food and Beverages sector closed with two gainers to three losers compared with four gainers to three losers recorded on previous trading day. NASCON Plc moved up by +2.22% while Dangote Flour Mills Plc closed negative with -4.98% after today’s trading session.

The Insurance sector closed four losers to fourteen unchanged prices compared with two gainers to three losers recorded on previous trading day.

The Petroleum sector records one loser to seven unchanged prices compared with two losers to four unchanged prices recorded on Friday. Eterna Oil Plc moved down by -4.92% while MRS Oil Plc and six other stocks closed flat after today’s trading session.

Source: proshare.com.ng

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