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Thursday, August 26, 2010

230810: Investors lose N31.845bn as negative outlook persists: ASI drops 0.52%.

Market continued the downward trend today with -0.52% decline recorded compared with depreciation by -0.36% recorded on Friday. Market capitalisation also dropped by N31.845 billion to close at N6.108 trillion.
Figures from the NSE showed that while transaction volume closed higher of the previous day’s figures, due to massive price decline recorded across the bourse, the naira value of equities traded today dipped by -21.15%. This gave indications that the increase recorded in the transaction volume could be linked to higher selling pressures, an indication of weak investors’ confidence.
Trends in the NSE-sectoral index further revealed the bearish run plaguing the market: of all the four sectoral indexes, all but NSE-Oil and Gas recorded decline of different rate, a similar trend recorded on Friday. Blue chip stocks were not spared in the decline.
It is apparent that issues at the NSE continue to have their severe consequences on the equities, as investors’ confidence remains feeble. This is not unexpected given the fact that the investment climate remains cloudy and this may linger for as long as the issue remains outstanding. There may not be improvement in investors’ commitment until the issues are resolved.
The consequences of the ongoing imbroglio on the exchange have taken a new dimension as it was reported in the dailies today that three foreign blue chip companies (from Breweries, Conglomerate and Food & beverages subsectors) might be threatening to pull out of the bourse. According to the information gathered, loss of confidence, crisis in the Exchange and market meltdown was among the reasons why these companies are threatening to pull out from the stock exchange.
This further strengthens our stand as expressed in our previous reports that there are urgent needs to resolve the ongoing crisis; the more the crisis lingers, the worst it may continue to get for the market as this will make the market unattractive for reasonable investors. Foreign investors will be scared away further.
Nigerian interbank lending rates eased to 1.1%t on average this week from 1.66% recorded last week, after the release of large budgetary allocations to government agencies raised liquidity in the system. The secured Open Buy Back (OBB) dropped 45 basis points to 1.05% from 1.50% last week, 5 basis points above the Standing Deposit Facility (SDF) rate and 4.95% points below the 6% central bank benchmark rate.
Overnight placement fell to 1.10% from 1.75%, while call eased to 1.15% from 1.75% previously. The total amount of N704 billion naira was announced as distributed last Friday to the three tiers of government from central accounts for the month of July.
Today, Goldlink Insurance Plc in its Q2 recorded positive gross earnings and decline in PAT by 10.00% and -22.11% respectively. In the same light, Abbey Building Society Plc in Q3 recorded 3.37% growth in gross earnings with negative PAT growth of -20.82
As usual, banking sector led the market transaction volume today with 133.895 million units valued at N1.001 billion (US$6.460 million) exchanged in 3,000 deals. Transactions in the shares of Zenith Bank Plc, UBN Plc, FCMB Plc and Fidelity Bank Plc boosted the volume traded in the sector. The total volume of 78.92 million units valued at N534.637 million traded in the shares of the four banks accounted for 58.40% of the entire sector volume and their value represented 53.39% of the sector’s value.
The number of gainers at the close of trading session closed at thirty three (27) compared with thirty four (21) gainers recorded on Friday, while decliners closed lower at twenty seven (38) compared with thirty (42) losers recorded the previous trading day. Market breath closed negative.
At the close of trading session, the All-Share Index dropped by -0.52% to close at 24,976.65 compared with depreciation by -0.36% recorded on Friday to close at 25,106.86. Market capitalisation also dropped by N31.845 billion (US$205.455 million) to close at N6.108 trillion (US$39.408 billion) compared with drop by N22.268 billion (US$143.666 million) recorded on Friday to close at N6.140 trillion (US$39.614billion).
The total transaction volume at the close of market session today went up by 27.84% to close at 294.275 million units exchanged in 5,680 deals as against volume drop by 14.81% recorded on Friday to close at 194.990 million units exchanged in 4,533 deals.
However, market value on the bourse nosedived by -21.15% to close at N1.666 billion (US$10.754 million) compared with transaction value decline by -2.64% recorded on Friday to close at N2.114 billion (US$14.123 million).
Evans Medicals Plc, Spring Bank Plc, Northern Nigerian Flourmills Plc topped the gainers chart for the day with +5% price appreciations. However, Union Homes Plc topped the losers chart for the day with -5% depreciations.
The performance of stocks in the Agriculture sector records one gainer to one loser just as the share price of Livestock Feeds Plc moved up by 3.51% while the share price of FTN Cocoa Plc dips by 4.48% and the share prices of Okomu Oil Plc and Presco remained unchanged ( a repeat of previous day trading).
The share price of Nahco Aviance Plc inched up by +1.97% in the Air Service sector; the stock gained after resumption from the price adjustment for 25kobo dividend on Friday while the share price of AIRSERVICE remained unchanged (a trend that has continued for some days now).
The bears dominated trading activities in the banking sector today as the sector records four (4) gainers to thirteen (13) losers. The share price of Spring Bank Plc led the gainers table with 5% appreciations, followed by Fidelity Bank Plc, Access Bank Plc and IBTC all gaining 0.78%, 0.63% and 0.34% respectively. The share price of Oceanic Bank Plc led the losers table in the sector with 4.91% loss closely followed by Platinum Bank Plc, Wema Bank Plc, Afribank Plc and Guaranty Trust Bank Plc all losing by 4.38%, 4.26%, 3.19% and 2.83% in that order.
The Breweries sector recorded upwards price movement in the share of International Breweries Plc and Nigerian Breweries Plc as they both gained by 4.14% and 0.55% respectively while the share price of Guinness Nigeria Plc remained unchanged compared to Friday’s trading which recorded no price movement in the sector.
The building materials sector recorded a gainer to a loser just as the share price of Ashaka Cement Plc moved northwards by 0.51% while WAPCO moved southwards by 1.43%. The share price of BCC and CCNN, however remained unchanged compared to previous trading day which recorded three (3) losers and one unchanged price.
The conglomerates sector recorded one (1) gainer to one (1) loser with the share price of UACN moving up by 1.22% while Unilever Nigeria Plc lost by 1.10% compared to Friday’s trading which also recorded one (1) gainer to one (1) loser with the price of PZ moving northwards by 1.30% while Unilever Nigeria Plc moved southwards by 0.29%
In the Food and Beverages sector, three gainers to four losers were recorded with the share of Northern Nigerian Flourmills Plc leading the way with 5% gain while NASCON led the losers table with 3.37% compared with the previous day trading in which the share of Big Treat Plc led the gainers with 1.92% while Honeywell Flourmill Plc share price dipped by 4.91% as the leader on the chart.
The insurance sector recorded four gainers to four losers after today’s trading with the share price of Prestige Insurance Plc leading the gainers’ chart with 4.78% while Gold Link Insurance Plc led the losers table with 3.51% compared to previous day trading which recorded two gainers to six losers.
There was a reversal in the petroleum sector as the share price of African Petroleum Plc recorded 4.95% gain to lead the gainers table in the sector and closely followed by Beco Petroleum Plc with 3.80% while the prices of other stocks traded in the sector remained unchanged compared to previous day trading which recorded one gainer to two losers.
The total volume traded in the shares of top five trades at the close of trading session stood at 249.275 million units valued at 1.666 trillion (US$10.75million) exchanged in 5,680 as against 194.990 million units valued at N1.143 trillion (US$7.37 million) exchanged in 4,533 deals recorded previous session. The volume and value of the top five trades for the day accounted for 49.00% and33.50% of the market volume and value in that other.
Top Ten Gainers of the day.
Top Ten Losers for the day.
Corporate Declaration for the day
Follow the link to get the latest banking results details., 00234-1-7624131, August 23th, 2010; 15.23hrs

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