Daily Stock News (25 Aug,2011)

The bears continued to reign as the transactions on the bourse closed with bears for the fourth time unabatedly in the week while sentiments remained unchanged on the back of continued investors’ apathy and ‘wait and watch’ attitude as suggested by significant growth in bearish volume while market YTD closed at -12.12%.

More so, Equity Market shed above 200 basis points to further extend down trend while market breadth remained weak despite an increase in value turnover.

Furthermore, the key benchmark indices remained downbeat, taking hits majorly from Blue Chip stocks as suggested by NSE 30 while other major NSE sectoral indices posted positive figures.

The negative sentiment witnessed in Building Materials, Chemical & Paints, Commercial Services and packaging sectors impacted the outlook recorded today. Meanwhile moderate buying activities was witnessed in Banking, Food & beverages, Automobile, Conglomerates, Industrial & Domestic Products, Insurance, Leasing, Petroleum Marketing and Foreign Listing sectors.

In the same vein, the market capitalization of 199 first-tier equities depreciated by N79.01billion as the sentiments recorded a negative outlook. 104 equities were traded today as against previous 112 with more activities recorded in Banking, Insurance, Conglomerates, Commercial Services, 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 moved down by -1.25% while Unity Bank Plc also recorded -3.51% loss as normal trading activities continued on them. See the performance chart below

Today, four of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips moved down by -0.85%, NSE Banking inches up by +0.20%, NSE Food & Beverages moved up by +0.14% and NSE Oil & Gas closed positive with +0.46% while NSE Insurance also closed positive with +0.64%.

At the close of trading session, the NSE All-Share Index dipped by -1.11% to close at 22,061.21 as against a decline by -0.02% recorded in the previous session to close at 22,308.22.  In the same vein, market capitalization depreciated by N79.01billion (US526.75million) to close at N7.05trillion (US$47.04billion) as against depreciation by N1.60billion (US$10.68million) recorded on preceding session to close at N7.13trillion (US$47.57billion).

The number of gainers at the close of trading session closed higher at 20 compared with (19) gainers recorded in the previous session while decliners closed lower at fifteen (15) as against nineteen (19) losers recorded in the previous trading day – suggesting a weak market breadth.

The following companies presented their results

1. Multi-Trex Integrated Foods Plc: in its Q1 2011 result recorded positive turnover growth by 37.44% and negative PAT growth by 153.19%

2. Chellarams Plc: in its Q1 2011 result recorded positive turnover growth by 31.29% and positive PAT growth by 29.87%

3. Roads Plc: in its Audited (March) 2011 result recorded negative turnover growth by 5.81% and negative PAT growth by 8.74%. The Company rewards investors with N0.50kobo dividend. The closure date is 13th – 28th September, 2011 while payment date is 5th October, 2011.

4. Lasaco Assurance Plc: in its Audited 2011 result recorded negative turnover growth by 38.10% and negative PAT growth by 49.89%.

5. Airline Services & Logistics Plc: in its Q2 2011 result recorded positive turnover growth by 2.29% and positive PBT growth by 610.78%

Also the following company presented its forecast:

1. Multi-Trex Integrated Foods Plc: Q2 2011 Forecast Turnover N7.278billion, Cost Of Sales (N6.042billion), Profit Before Tax (N41.732million), Forecast Taxation Nil, Profit After Taxation (N41.732million)

As usual, Banking sector led the market transaction volume today with 266.73 million units valued at N1.09billion (US$7.30million) exchanged in 2,476 deals as against 125.59 million units valued at N641.40million (US$4.27million) exchanged in 2,624 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, Stanbic IBTC Bank and First Bank Plc and the total volume of 238.43 million units valued at N952.78million traded in the shares of five stocks accounted for 76.18% of the entire market volume and their value represented 61.82% of the market’s value.

Transaction volume on the exchange moved up by 89.52% to close at 312.97 million units exchanged in 4,117 deals as against positive position of 36.19% recorded in the previous trading to close at 165.14 million units exchanged in 4,358 deals.

Also, market value appreciated by 31.40% to close at N1.54billion (US$10.27million) as against depreciation by 61.15% recorded in the previous trading session to close at N1.17billion (US$7.82million)

SECTORAL REVIEW

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

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

The Banking sector closed today with six (6) gainers to six (6) losers compared with seven (7) gainers to four (4) losers recorded on previous trading day. Ecobank Plc moved up by +3.62% to top the gainers’ chart while Unity Bank Plc moved down by -3.51% to top the losers’ chart after today’s trading session.

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

The Building materials sector, today, closed with one gainer to two losers compared with one loser to three unchanged prices was also recorded on previous trading day. Cement Co. of Northern Nigeria Plc moved up by +1.33% while Dangote Cement and Lafarge WAPCO Plc moved down by -4.99% and -0.24% respectively after today’s trading session.

The Conglomerates sector recorded one gainer to one loser compared with one gainer to three losers recorded on Wednesday. Transcorp Plc moved up by +1.09% while UAC of Nigeria Plc moved down by -0.76% after today’s trading session.

The Food and Beverages sector closed with two gainers to two losers compared with one gainer to four losers recorded on previous trading day. Dangote Sugar Refinery Plc moved up by +4.45% whileDangote Flour Mills Plc closed negative with -4.92% after today’s trading session.

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

The Petroleum sector records one gainer to six unchanged prices compared with two losers to six unchanged prices recorded on Wednesday. Oando Plc moved up by +1.58% while MRS Oil Plc and five other stocks closed flat after today’s trading session.