Market Sheds 0.3% on Profit Taking

WEEKLY REPORT

The Nigerian stock market closed on a negative note last week as profit taking halted a four week rally.  The market had in the previous week hit a record high following an unprecedented surge in investors’ appetite for risk assets. While the Nigerian Stock Exchange (NSE) All-Share Index surged 7.46 per cent, the market capitalisation added N676 billion.

However, attempts by some investors to realise part of the capital gains recorded the previous week led to a decline in the benchmark index closing the week 0.28 per cent lower at 28,113.38, while market capitalisation ended at N9.719 trillion.

Similarly, all other indices finished lower except the NSE Premium, NSE Main Board, NSE Banking, NSE Insurance and the NSE Pension indices that appreciated by 3.05 per cent, 0.23 per cent, 0.38 per cent and 0.97 per cent while the NSE ASeM Index closed flat.

The negative close notwithstanding, analysts at Cordros Capital Limited, said: “Fundamentally, the market remains strong, particularly in light of improved stability and liquidity in the currency space, and the government’s recent progress in creating and harnessing growth and stability in the Nigerian economy.”

 Daily Market performance

The first day of the week saw investor besiege the market to lock in profits recorded in the previous week. Consequently, the NSE ASI declined by 2.41 per cent to close at 27,513.69, while market capitalisation shed N234.6 billion to close  lower at N9.5 trillion.

 Activity level also fell  with  volume and value shares  traded declining by  36.9 per cent and 13.9 per cent to 671.0 million  units and N7.9 billion  respectively.

There were only 10 price gainers and 41 price losers. Law Union and Rock Insurance Plc led the price gainers, trailed by Presco Plc with 4.2 per cent appreciation. Dangote Cement Plc chalked up 4.16 per cent, while Linkage Assurance Plc and UAC of Nigeria Plc rose 3.85 per cent ND 3.04 per cent respectively among others.

The price losers’ table was led by Oando Plc with a decline of 9.6 per cent followed by Eterna   Plc, which went down by 9.5 per cent. Fidson Healthcare Plc, Diamond Bank Plc and Zenith Bank Plc shed 9.3 per cent, 9.0 per cent, and 5.6 per cent in that order.

Analysts at Meristem Securities Limited, said: “We attribute the day’s loss to the much expected profit-taking activities on counters that had gained in the market’s recent rally. The day’s loss was tempered by the 4.16 per cent  price appreciation of  Dangote Cement Plc, as the market would have fared worse, ex-Dangote Cement (-4.88 per cent),” they said.

In terms of sectoral performance, all the sectors ended the  day in red led by  the NSE Oil & Gas Index  that fell by  3.8 per cent  following losses in Oando (-9.6 per cent) and Seplat (-5.0 per cent). The NSE Consumer Goods Index shed 3.7 per cent, while the NSE Banking Index, NSE Industrial Goods Index and Insurance Index went down by 3.3 per cent, 1.1 per cent and 1.0 per cent respectively.

However, the market rebounded on Tuesday with the benchmark index appreciated 0.4 per cent to settle at 26,609.67. Similarly, investors gained N33.2 billion as market capitalisation increased to N9.5 trillion. Performance across sectors was mixed as  three of  the five  indices advanced. The NSE  Consumer Goods Index appreciated the most, rising by 1.3 per cent on account of price appreciation in Nigerian Breweries  (+2.4 per cent), Nestle  (+0.3 per cent) and Flour Mills of Nigeria  (+3.2 per cent). The NSE Banking Index followed, advancing 0.9 per cent on the back of gains in GTBank (+1.7 per cent), Access Bank (+2.4 per cent) and Zenith Bank (+0.6 per cent). In the same in vein, the NSE Industrial Goods Index trended 0.2 per cent northwards due to gains in CAP Plc (+4.4 per cent). On the  negative side,  the NSE  Oil and Gas Index fell 3.4 per cent on the back of continuous profit taking in Seplat (-9.0 per cent) and Total (-1.5 per cent) while  AIICO Insurance  (-1.9 per cent) dragged the Insurance index (-0.1 per cent) southwards.

The bulls retained their hold on the market lifting the  as the index rose 1.05 per cent to close higher at 27,900.44, while market capitalisation added N100.5 billion to close at N9.645 trillion. A total of 25 stocks appreciated compared with 13 that declined in value.

Bellwethers such as Nestle Nigeria, GTBank Plc, Nigerian Breweries were among the price gainers. However, Oando Plc led the table, chalking up 9.9 per cent.  May & Baker Nigeria Plc closed as the second highest price gainer with 9.8 per cent, while  Linkage Assurance Plc and Redstar Express Plc added 7.4 per cent and 4.9 per cent respectively.

Conversely, C & Leasing Plc led the price losers, shedding 8.2 per cent close at N0.67, trailed by Law Union and Rock Insurance Plc and Livestock Feeds Plc with 4.7 per cent apiece. Union Bank of Nigeria Plc and African Prudential Registrars Plc declined by 2.9 per cent and 2.1 per cent in that order.

The bulls dominated the equity market on Thursday with the index appreciating by 0.72 per cent to close at 28,101.63. The appreciation recorded in the share prices of FBN Holdings, GTBank, Nestle, Zenith Bank and UBA were mainly responsible for the gain recorded in the Index.

Similarly, the market capitalisation appreciated by 0.73 per cent to close at N9.71 trillion, compared with the appreciation of 1.05 per cent recorded   on Wednesday.

Investors traded   353.14 million shares worth N9.16 billion, up by 162.48 per cent from N3.49bn recorded the previous day. The most actively traded sectors were: Financial Services (249.18 million), Consumer Goods(34.80 million) and Conglomerates (30.86 million), while the  three most actively traded stocks were: Zenith Bank (63.20 million), FBNH (35.74 million) and Transcorp (30.52 million) 

Market turnover

By the end of the week, investors traded 2.271 billion shares worth N32.647 billion in 20,710 deals compared to a total of 3.255 billion shares valued at N28.738 billion that exchanged hands the previous week in 25,370 deals.

As usual, the  Financial Services Industry remained  the most active he activity chart with 1.843 billion shares valued at N17.715 billion traded in 12,119 deals; thus contributing 81.19 per cent  and 54.26 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 119.755 million shares worth N5.198 billion in 2,599 deals. The third place was occupied by Conglomerates Industry with a turnover of 119.281 million shares worth N273.785 million in 1,109 deals.

Trading in the top three equities namely – Access Bank Plc, Zenith Bank Plc and FBN Holdings Plc accounted for 998.849 million shares worth N10.412 billion in 4,831 deals.

 Also traded during the week were a total of 1,470 units of Exchange Traded Products (ETPs) valued at N10,128.30 executed in two deals compared with a total of 948 units valued at N16,591.16 transacted  the previous week in 14 deals.

A total of 6,308 units of Federal Government Bonds valued at N5.481million were traded last week in  three deals, compared with a total of 5,201 units valued at N5.400 million transacted last week in three deals.

 Price Gainers and Losers

Meanwhile, 30 equities appreciated in price last week,  lower than 57 equities of the previous week, while 31 equities depreciated in price, higher than 13 equities of the previous week.

May & Baker Nigeria Plc led the price gainers with 14.8 per cent to close at N1.47 per share. Linkage Assurance Plc trailed with a gain of 11.5 per cent. United Bank for Africa Plc, Oando Plc and Neimeth International Pharmaceuticals Plc garnered 9.6 per cent, 7.7 per cent and 7.5 per cent.

Other top price gainers were: N.E.M Insurance Plc(6.1 per cent); FCMB Group Plc(5.4 per cent); Transcorp Plc(5.2 per cent); GTBank and  Red Star Express (5.0 per cent apiece).

Conversely, Newrest ASL Nigeria Plc led the price losers with 13.2 per cent, trailed by C & I Leasing Plc with 11.8 per cent. Diamond Bank Plc shed 11 per cent, while Eterna Plc and Cement Company of Northern Nigeria Plc depreciated by 8.7 per cent and 8.1 per cent in that order.

Other top price losers were: Seplat (8.1 per cent); Jaiz Bank Plc (8.0 per cent); Livestock Feeds Plc (7.8 per cent); UPDC (7.6 per cent); Fidson Healthcare (6.7 per cent.