Daily Stock News (24 Aug,2011)

Nigerian Capital Market extended its losing streak for the fourth day in a stretch as bearish sentiments continued to outweigh bargain positions amid negative postures of market indicators, though waning sell pressure observed today as market breadth appeared better with one gainer to one loser position recorded- indicating recovering buy position.

More so, trading activities and market outlook revealed weak sentiments and commitment towards investment in equities as market lack positive news to drive sustainable uptrend while the bears remained in control of market direction- a function of weak market fundamentals.

More so, the key benchmark indices closed downbeat again, taking hits from Food & Beverages, Insurance and Oil & Gas stocks while three NSE sectoral indices sustained the negative postures as NSE 30 and Banking indices retraced.

The negative sentiment witnessed in Automobiles, Breweries, Building Materials, Food & Beverages, Industrial & Domestics Products, Packaging, Petroleum Marketing and Foreign Listings sectors impacted the outlook recorded today. Meanwhile moderate buying activities was witnessed Banking, Chemical & Paints, Computer & Office Equipment, Conglomerates, Healthcare, Insurance and Maritime sectors.

In the same vein, the market capitalization of 199 first-tier equities depreciated by N1.60billion as the sentiments recorded a negative outlook. 112 equities were traded today as against previous 116 with more activities recorded in Banking, Insurance, Conglomerates, 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 recorded -5.00% loss as normal trading activities continued on them. See the performance chart below

Today, three out of the five NSE sectoral indices closed negative as NSE 30 which basically measures the performance of blue chips moved up by +0.10%, NSE Banking inches up by +1.67%, NSE Food & Beverages moved down by -0.72% and NSE Oil & Gas closed negative with -0.51% while NSE Insurance closed negative by -0.44%.

At the close of trading session, the NSE All-Share Index dips marginally by -0.02% to close at 22,308.22 as against a decline by -1.04% recorded in the previous session to close at 22,313.23.  In the same vein, market capitalization depreciated by N1.60billion (US10.68million) to close at N7.13trillion (US$47.57billion) as against depreciation by N74.97billion (US$499.84million) recorded on preceding session to close at N7.13trillion (US$47.58billion).

The number of gainers at the close of trading session closed higher at 19 compared with (13) gainers recorded in the previous session while decliners closed lower at nineteen (19) as against twenty-six (26) losers recorded in the previous trading day – suggesting a weak market breadth.

The following company presented its result

1. Neimeth International Pharmaceuticals Plc: in its Audited (March) 2011 result recorded positive turnover growth by 0.42% and positive PAT growth by 189.65% The Company rewards investors with N0.05kobo dividend. The closure date is 21st – 26th September, 2011 while payment date is 10th October, 2011.

As usual, Banking sector led the market transaction volume today with 125.59 million units valued at N641.40million (US$4.27million) exchanged in 2,624 deals as against 183.49 million units valued at N1.04billion (US$6.97million) exchanged in 2,800 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of Fin Bank, Guaranty Trust Bank, UBA, Diamond Bank and First Bank Plc and the total volume of 95.13 million units valued at N462.01million traded in the shares of five stocks accounted for 57.61% of the entire market volume and their value represented 39.39% of the market’s value.

Transaction volume on the exchange moved down by 36.19% to close at 165.14 million units exchanged in 4,358 deals as against positive position of 40.97% recorded in the previous trading to close at 258.81 million units exchanged in 4,679 deals.

Also, market value depreciated by 61.15% to close at N1.17billion (US$7.82million) as against appreciation by 80.90% recorded in the previous trading session to close at N3.01billion (US$20.12million)

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 one loser to one unchanged price 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 four (4) losers compared with three (3) gainers to nine (9) losers recorded on previous trading day. Diamond Bank Plc moved up by +4.99% to top the gainers’ chart while Unity Bank Plc moved down by -5.00% to top the losers’ chart after today’s trading session.

The Breweries sector closed with one loser to three unchanged prices just as one loser to three unchanged prices was also recorded on previous trading day. Nigerian Breweries Plc closed negative with -2.35% loss recorded while Champion Breweries, International Breweries and Guinness Nigerian Plc closed flat after today’s trading session.

The Building materials sector, today, closed with one loser to three unchanged prices just as one loser to three unchanged prices movement was also recorded on previous trading day. Lafarge WAPCO Plc moved down by -4.55% while Ashaka Cement, Cement Co. of Northern Nigeria and Dangote Cement Plc closed flat after today’s trading session.

The Conglomerates sector recorded three gainers to three unchanged prices compared with one gainer to three losers recorded on Tuesday. Transcorp Plc moved up by +2.22 while John Holt Plc and two other companies closed flat after today’s trading session.

The Food and Beverages sector closed with one gainer to four losers compared with four losers to nine unchanged prices recorded on previous trading day. National Salt Co. of Nigeria Plc moved up by +5.00% while Honeywell Flour Mills Plc closed negative with -4.97% after today’s trading session.

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

The Petroleum sector records two losers to six unchanged prices compared with one gainer to two losers recorded on Tuesday. Eterna Oil Plc moved down by -4.86% while MRS Oil and five other stocks closed flat after today’s trading session.