Stock Market Closes Higher Despite Weak Sentiments

Goddy Egene Abiodun

Eromosele Summary of Daily Performance

Investors had maintained a negative outlook on the market at the resumption of trading last Monday as the bench market declined by 0.49 per cent. The index traded positive for most of the season, but negative sentiments towards Guinness Nigeria Plc, UBA Plc and Seplat Plc weighed on the overall market performance. At the close of the session, the benchmark index closed lower at 34,317.72 with a corresponding market capitalisation of N11.69 trillion. Also, market activity slowed, as both volume and value of trades were lower relative to the precious session. A total of 201 million units of shares (down 53.2%) worth N2.19 billion (down 47 per cent) were traded in the session. All major sector trackers ended the day in the negative save for the Industrial (0.29 per cent) sector. The Banking (0.17 per cent), Consumer goods (1.18 per cent) and Oil & Gas (1.64 per cent) trackers were weakened by negative sentiments towards UBA Plc (4.14 per cent) Guinness Nigeria Plc and Seplat Plc respectively.

The market again closed on a negative note on Tuesday as the NSE ASI depreciated by 0.55 per cent to close at 34,129.88 points, compared with the depreciation of 0.49 per cent recorded the previous day. The depreciation in the Index was as a result of the losses recorded in the share prices of some highly capitalised stocks such as: Forte Oil, Skye Bank, FBN Holdings, UBA and Oando, amongst others. Similarly, the market capitalisation depreciated by 0.55 per cent to close at N11.60 trillion, compared with the depreciation of 0.75 per cent recorded the prior day to close at N11.66 trillion. The total value of the stocks traded on the day on the floors of the NSE was N2.84 billion, up by 29.19 per cent from N2.20 billion traded previous day.

The NSE ASI trended further downwards on Wednesday as investor confidence in the local market remained subdued. The ASI lost an additional 0.23 per cent, depressed largely by selloffs in Unity Bank Plc, Zenith Bank Plc, Guaranty Trust Bank Plc ) and UBN Plc. Interest in the Consumer goods giants: Nigerian Breweries Plc and Nestle Nigeria Plc, however, added value to the index. At the end of the session, the benchmark index closed at 34,050.92 points with a corresponding market capitalisation of N11.57 trillion. Market activity was mixed as volume of trades declined by 5.7 per cent while market turnover improved by 11.9 per cent. We note heavy trades in tier one banking names: Zenith Bank Plc and Guaranty Trust Bank Plc which accounted for 23.91 per cent of total market value. At the close of the session, 288 million units of shares worth N3.18 billion were exchanged in 4,302 deals. Banking (1.52 per cent) and Oil & Gas (1.40 per cent) sectors witnessed negative sentiments, while the Consumer goods (0.56 per cent ) and Industrials (0.35 per cent) closed the session positive. Zenith Bank Plc (3.24 per cent), Oando Plc, Nestle Nigeria Plc (2.73 per cent) and WAPCO Plc (0.55 per cent) drove the performance of their respective sectors.

The market, however, returned to positive territory on Thursday as the NSE ASI appreciated by 1.93 per cent to close at 34,708.11 points, compared with the depreciation of 0.23 per cent recorded yesterday.

STANBIC IBTC STOCKBROKERS LIMITED

CSL STOCKBROKERS LIMITED

RENCAP SECURITIES (NIG) LIMITED

EFCP LIMITED

FBN SECURITIES LIMITED

CORDROS CAPITAL LIMITED

CARDINALSTONE SECURITIES LIMITED

CHAPEL HILL DENHAM SECURITIES LTD

PARTNERSHIP SECURITIES LIMITED

INVESTMENT ONE STOCKBROKERS INT’L LTD CSL STOCKBROKERS LIMITED STANDARD ALLIANCE CAPTL & ASSET MGT. LTD

GREENWICH TRUST LIMITED

STANBIC IBTC STOCKBROKERS LTD

FBN SECURITIES LIMITED

CORDROS CAPITAL LIMITED

CARDINALSTONE SECURITIES LIMITED

READINGS INVESTMENTS LIMITED

EFCP LIMITED

RENCAP SECURITIES (NIG) LIMITED The appreciation in the Index was as a result of the gains recorded in the share prices of Unilever Nigeria Plc, Dangote Cement Plc, Nigerian

13.83

13.04

7.02

5.19

5.11

3.58

2.95

2.95

2.53

2.06 10.51 9.63

7.18

6.59

5.09

4.91

3.73

2.99

2.97

2.36 Breweries Plc, Guinness Nigeria Plc and UBA Plc, amongst others. Similarly, the market capitalization appreciated by 1.85 per cent to close at N11.79 trillion, compared with the depreciation of 0.23 per cent recorded yesterday to close at N11.57 trillion. The total value of the stocks traded on the day on the floors of the NSE was N3.75 billion, up by 18.09 per cent from N3.18 billion traded prior day. Market Turnover

Meanwhile, turnover of 1.169 billion shares worth N11.961 billion in 17,769 deals were traded last week by investors on the floor of the exchange in contrast to a total of 2.064 billion shares valued at N17.179 billion that exchanged hands the previous week in 25,577 deals.

The Financial Services Industry led the activity chart in volume terms with 796.234 million shares valued at N6.200 billion traded in 10,081 deals, thus contributing 68.13 per cent and 51.83 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with a turnover of 239.230 million shares worth N862.503 million in 1,157 deals. The third place was occupied by the Consumer Goods Industry with 46.984 million shares worth N2.435 billion in 2,811 deals.

Trading in the top three equitiesTransnational Corporation of Nigeria Plc, UBA Plc and Access Bank Plc, (measured by volume) accounted for 460.340 million shares worth N1.979 billion in 2,903 deals, contributing 39.39 per cent and 16.55 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 11,737 units of Exchange Traded Products (ETPs) valued at N1.799 million executed in 15 deals compared with a total of 2.942 units valued at N70.679 million transacted the previous week in 47 deals.

A total of 330 units of Federal Government Bonds valued at N370,698.04 were traded this week in 2 deals compared with a total of 9,450 units of Federal Government Bonds valued at N10.824 million transacted the previous week. Gainers and Losers

Meanwhile, the price movement chart of the NSE showed that a total of 31 equities appreciated in price during the week, lower than 42 equities of the preceding week. Forty-one equities depreciated in price, higher than 33 equities of the preceding week, while 120 equities remained unchanged, equal with the preceding week.

The top 10 gainers were: Dangote Cement Plc (N9.50), Presco Plc (N4.09), Unilever Nigeria Plc (N2.31), UAC Nigeria Plc (N2.00), Vitafoam Nigeria Plc (43 kobo), AG Leventies Plc (15 kobo), Associated Bus Company Plc (5 kobo), Continental Reinsurance (6 kobo), Custodian and Allied Plc (25 kobo) and Red Star Express Plc (18 kobo).

On the other hand, the top 10 losers included: Forte Oil Plc (N19.95), 7-UP Bottling Company Plc (N16.00), PZ Industries Plc Plc (N2.73), Unity Bank Plc (N1.11), Dangote Sugar Plc (N1.12), UACN Property Development Company Plc (97 kobo), AIICO Insurance (12 kobo), May & Baker Plc (17 kobo), Berger Paint Plc (92 kobo) and Neimeth Plc (10 kobo).