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Stock Market defies profit taking to close higher

By on April 21, 2015

After succumbing to profit taking the previous week, the Nigerian equities market returned to positive territory last week helped by bargain hunters’s drive to take position for possible gain in the last trading day of the week.
With the week starting fairly, investors had thought the market was about to witness another days of successive rally, it was not to be as the bears took control from Tuesday to Thursday. However, the gains recorded on Monday and Friday outweighed the losses recorded in the others days as the twin market gauge closed higher. The  Nigerian Stock Exchange (NSE) All-Share Index (ASI) and market capitalisation appreciated by 0.21 per cent  to close on Friday at 35,005.05 and N11.928 trillion respectively.
Similarly, all the Indices finished higher during the week with the exception of the NSE Consumer Goods and NSE Lotus II indices that shed 1.27 per cent and 2.00 per cent respectively. However, the NSE ASeM Index closed flat.

Weekly Summary and Outlook

The NSE Banking  Index sector topped the sector advancers for the week, rising 1.5 per cent, followed by  the NSE  Oil & Gas  Index with a similar 1.5 per cent appreciation. The NSE  Insurance  Index and NSE Industrial Index added  0.4 per cent  and 0.1 per cent in that order.
The post general election rally in the Nigerian equities market came to a halt the previous week as anxious investors rush to take profit, ending the week with a 2.23 per cent decline.

Summary of Daily Performance

Trading at the market had resumed Monday on a positive note as the NSE ASI advanced by 0.74 per cent as sentiments in the equities market remained positive. Nigeria Breweries Plc, Guaranty Trust Bank Plc and Zenith Bank Plc accounted for most of the gains seen, while Nestle Nigeria Plc shaved -132 points off the index.  At the close of the session, the benchmark ASI settled at 35,190.23  with a corresponding market capitalisation  of N11.99 trillion.

However, market activity as measure by volume and value of trades moderated. At the close of the session, a total of 345 million units of shares (down 78.8 per cent ) worth N4.65 billion (down 42.2 per cent ) were traded in 4,956 deals.

Reflective of the positive market sentiments, all major sectoral trackers closed positive.
The positive sentiment lost steam on Tuesday as the benchmark index depreciated by 0.42 per cent to close at 35,042.33 points, compared with the appreciation of 0.74 per cent recorded the prior day. The depreciation in the Index could be attributed to the losses recorded in the share prices of some highly capitalised stocks such as: UBA Plc, Zenith Bank Plc, Guaranty Trust Bank Plc, Dangote Sugar Refinery Plc and Diamond Bank Plc. Similarly, the market capitalisation depreciated by 0.42 per cent to close at N11.94 trillion, compared with the appreciation of 0.74 per cent recorded yesterday to close at N11.99 trillion. The total value of the stocks traded on the day on the floors of the NSE was N3.66 billion, down by 21.26 per cent from N4.65 billion traded the previous day.
The benchmark index declined further on Wednesday due largely to negative sentiments towards Nigeria Breweries Plc and Zenith Bank Plc, which offset mild gains in the likes of Guinness Nigeria Plc, Guaranty Trust Bank Plc and SEPLAT Plc (cumulative 90pts). The benchmark index thus slid 0.22 per cent to close at 34,965.88 points. In the same way, market capitalization declined by N26.09 billion to N11.81 trillion. Contrary to the outcome of the session, sentiments in the market were rather positive, 33 stocks advanced while 24 declined. This was reflective in the volume and value of trades which improved by 17.1 per cent and 1.7 per cent respectively. Trades in the banking sector accounted for over 55 per cent of the market’s total volume, with UBA Plc, ETI Plc and Guaranty Trust Bank Plc emerging as the most active stocks. At the close of the session, 291 million units of shares worth N3.73 billion were exchanged in 4,659 deals.
The market again closed in the red on Thursday as the benchmark index settled at 34,832.62 while market capitalisation declined by N45.41 billion to end at N11.87 trillion. Activity level however increased as volume and value traded were up by 147 per cent and 3.5 per cent respectively. As a result, a total of 719 million shares worth N3.86 billion were traded in 4,494 deals. The banking sector accounted for 33 per cent and 66 per cent of total volume and value traded on the bourse.
The market ended the week on a positive note as the NSE ASI gain 0.50 per cent to close at 35,005.42 points. Improved interest in heavy weights Zenith Bank Plc, Dangote Cement Plc and Nigeria Breweries Plc accounted for the positive return, offsetting losses in Stanbic IBTC Plc and Lafarge Africa Plc.At the close of trades, market capitalisation added N58.76 billion to settle at N11.93 trillion. Activity level however declined as volume and value traded shed 56.1 per cent and 9.3 per cent respectively. As a result, a total of 316 million units of shares worth N3.49 billion were traded in 4,940 deals.

Market Turnover

Meanwhile,  a turnover of 1.919 billion shares worth N19.402 billion in 23,988 deals were traded last week by investors on the floor of the exchange  in contrast to a total of 3.511 billion shares valued at N25.196 billion that exchanged hands the previous week in 26,836 deals.
The Financial Services Industry  led the activity chart  in volume terms with 1.530 billion shares valued at N11.683 billion traded in 13,040 deals; thus contributing 79.71 per cent and 60.21 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with a turnover of 156.808 million shares worth N1.589 billion in 1,695 deals. The third place was occupied by the Consumer Goods Industry with 107.338 million shares worth N3.816 billion in 3,983 deals.
Trading in the Top Three Equities namely- Standard Alliance Insurance Plc, United Bank for Africa Plc and FBN Holdings Plc (measured by volume) accounted for 667.216 million shares worth N2.543 billion in 4,444 deals, contributing 34.76 per cent and 13.11 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 408,933 units of Exchange Traded Products (ETPs) valued at N7.019 million executed in 30 deals compared with a total of 25,721 units valued at N1.838 million transacted the previous week in 23 deals. A total of 10 units of Federal Government Bond valued at N10, 792.74 were traded this week in 1 deal. However, there was no bond traded the previous week.

Gainers and Losers

In terms the price movement,  a total of 46 equities appreciated in  compared with 25 equities of the preceding week. Twenty-eight equities depreciated in price, lower than 53 equities of the preceding week, while 122 remained unchanged higher than 118 equities of the preceding week.
The top 10 gainers were: Guinness Nigeria Plc (N30.00), UACN Plc (N5.01), Beta Glass Plc (N2.59), Vono Plc (16 kobo), Livestock Feedss Plc (33 kobo), Honeywell Plc (43 kobo), Airline Services and Logistics Plc (25 kobo), NAHCO (73 kobo), UBA Capital Plc (17 kobo) and NPF Micro Finance Bank Plc (12 kobo).
Conversely, the top 10 losers included: Nestle Nigeria Plc (N104.05), Conoil Plc (N1.50), Royal Exchange Plc Plc (3 kobo), Associated Bus Company Plc (3 kobo), CCNN Plc (60 kobo), Portland Paints and Products (17 kobo), Dangote Flour Plc (25 kobo), Evans Medical Plc (10 kobo), FCMB Plc (16 kobo) and Learn Africa Plc (6 kobo).

 

[ThisDay]