Equities Market Succumbs to Profit Taking 

WEEKLY REPORT

After four weeks of bullish run, the stock market closed last week on a negative note on profit taking by investors. For almost a month, the market enjoyed positive sentiments that drove prices of equities to new highs.  However, the four-week bullish trend came to a halt last week, as investors took profit in counters that had appreciated in prior weeks.

Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) declined by 4.99 per cent to close at 32,122.14, while market capitalisation closed lower at N11.108 trillion. Consequently, the year-to-date growth of the market pared to 19.5 per cent.

All the sectoral indicators fell during the week led by the NSE Banking Index with a decline of 6.8 per cent. The NSE Industrial Goods Index trailed with 6.2 per cent fall while   the NSE Insurance Index went down by 5.4 per cent.  The NSE Consumer Goods Index depreciated by 4.0 per cent, just as the NSE Oil & Gas Index shed 3.3 per cent.

Daily Market performance

Trading at the stock market remained bullish on the first day of the week as the ASI appreciated by 0.96 per cent to close at 34,135.10, while market capitalisation ended at N11.80 trillion.  Gains in the shares of Dangote Cement, Flour Mills, Lafarge Africa, GTBank and Stanbic IBTC bolstered the growth.

The total value of stocks traded was N5.68 billion invested in482.51 million in 5,771 deals. The most actively traded sectors were: Financial Services (400.12 million), Conglomerates (32.77million) and Consumer Goods (20.20million), while the three most actively traded stocks were: Wema Bank (62.90 million), GTBank (50.44 million) and Access Bank (34.48 million).

A further analysis of the performance showed that Performance across sectors three of five indices appreciated. The NSE Industrial Goods Index advanced the most, gaining 1.3 per cent on the back of positive sentiment towards Dangote Cement (+2.4 per cent) and CCNN (+10.2 per cent) while upticks in Nigerian (+0.6 per cent) and International Breweries (+8.8 per cent) drove the NSE Consumer Goods Index 0.7 per cent northwards. Similarly, the NSE Banking Index rose 0.5 per cent on account of gains in ETI (+7.1 per cent) and GTBank (+0.8 per cent). Conversely, the NSE Oil & Gas Index fell 1.9 per cent following   sell-offs in Mobil Oil (-5.0 per cent) and Forte Oil Plc (-5.0 per cent).  The NSE Insurance Index depreciated by 0.4 per cent on account of losses in Continental Reinsurance Plc (-6.5 per cent) and LASACO (-3.6 per cent).

The Nigerian equities market extended its bullish run on Tuesday with the index rising by 0.70 per cent to close at 34,375.60. The performance was primarily driven by price appreciation in Dangote Cement, Nigerian Breweries Plc, International Breweries Plc  and Julius Berger Nigeria Plc.

Performance across sectors was mixed as three indices declined, while two appreciated. The NSE Oil & Gas Index led the losers, declining by declined by   1.2 per cent on account of losses in Oando Plc (-4.6 per cent) and Forte Oil (-5.2 per cent).

Decline in the share price of AXA  Mansard Insurance  (-4.6 per cent) and Linkage Assurance (-3.6 per cent) lifted  the NSE  Insurance Index by  1.0 per cent southwards. Similarly, the  NSE Banking Index  fell by  0.70 per cent due to profit taking in Zenith Bank (-1.9 per cent) and Access Bank (-2.1 per cent).

Conversely, the NSE Industrial Index appreciated by 1.3 per cent, while the NSE Consumer Goods Index added 1.1 per cent.

However, the market declined on Wednesday on profit taking. Consequently, the index   fell by 2.6 per cent to close at 33,477.89 after rising for the first two days of the week.

Similarly, the market capitalisation fell by same margin from N11.89 trillion to close at N11.58 trillion.

The negative performance was dragged by   profit taking in major banking stocks, a development that depressed the NSE Banking Index by 2.9 per cent.  Skye Bank Plc shed 5.0 per cent, while Ecobank Transnational Incorporated and FBN Holdings Plc depreciated by 4.9 per cent apiece. Diamond Bank depreciated by 4.6 per cent, just as Zenith Bank Plc and  Access Bank Plc went down by 3.9 per cent each.  Guaranty Trust Bank Plc  and Fidelity Bank Plc fell by 2.5 per cent and 1.5 per cent  in that order.

However, the  NSE  Industrial Goods Index declined the most, shedding  3.6 per cent due to price depreciation in Dangote Cement (-4.2 per cent) and  Lafarge Africa Plc (-4.1 per cent). Similarly, the NSE Insurance and  NSE Consumer Goods indices slid 1.4 per cent and 1.1 per cent respectively.

The market depreciated further on Thursday as the ASI shed 1.64 per cent to close at 32,928.44.  The depreciation recorded in the share prices of Nigerian Breweries, FBN Holdings, GT Bank, Zenith Bank and ETI was mainly responsible for the decline recorded in the Index

The total value of stocks traded was N5.03 billion staked on 509.76mn in 5,321 deals. The most actively traded sectors were: Financial Services (399.57 million), Conglomerates (63.63 million) and Consumer Goods (15.65 million), while the three most actively traded stocks were: UBA (88.91 million), Diamond Bank (70.36 million) and Transcorp (60.31 million).

Similar to the previous trading session, performance across sectors was broadly bearish as all indices declined. The  NSE Consumer Goods Index dipped the most, shedding  2.6 per cent due to losses in Nigerian Breweries  (-4.8 per cent) and International Breweries  (-5.0 per cent), while sell sentiment on Zenith Bank (-3.6 per cent), ETI (-8.5 per cent) and GTBank (-1.7 per cent) depressed  the NSE Banking Index 2.4 per cent lower. Similarly,  the NSE  Insurance  Plc  and NSE  Industrial Goods indices went down by  1.3 per cent and 0.8 per cent  in that order due to price depreciation in AXA Mansard  (-5.0 per cent) and Lafarge Africa  (-1.6 per cent).

 

 

Market Turnover

 In line with the bearish trend, volume and value of transactions fell last week as investors traded  as investors  exchanged  2.311 billion shares worth N24.577 billion in 27,836 deals compared with   2.737 billion shares valued at N32.042 billion that  were traded exchanged  in 32,217 deals the previous week.

A breakdown of the performance showed that the Financial Services Industry led the activity chart with 1.783 billion shares valued at N15.865 billion traded in 15,948 deals. The Conglomerates Industry followed with 239.226 million shares worth N571.910 million in 1,251 deals, while the third place was occupied by Consumer Goods Industry with a turnover of 85.663 million shares worth N4.522 billion in 3,673 deals.

Trading in the top three equities namely – Zenith  Bank Plc, Transnational Corporation of Nigeria Plc and FBN Holdings Plc  accounted for 665.483 million shares worth N6.695 billion in 5,649 deals, contributing 28.80 per cent and 27.24 per cent  to the total equity turnover volume and value respectively.

Also traded during the week were a total of 63,927 units of Exchange Traded Products (ETPs) valued at N841,330.04 executed in 11 deals compared with a total of 16,300 units valued at N973,376.00 transacted the previous week in three deals.

Similarly, 2,212 units of Federal Government Bonds valued at N2.098 million were traded this week in 7 deals, compared with a total of 12,193 units valued at N12.440 million transacted last week in 14 deals.

Price Gainers and Losers

In all, only 23 equities appreciated in price during the week, lower than 38 equities of the previous week.  Conversely, 52 equities depreciated in price, higher than   the 42 equities of the previous week. Neimeth International Pharmaceuticals Plc led the price gainers chart with 44.1 per cent, trailed by Ashaka Cement Plc with 21.3 per cent. Livestock Feeds Plc chalked up 20.8 per cent, while Conoil Plc, Berger Paints Nigeria  Plc, and Cement Company of Northern Nigeria Plc garnered 17.2 per cent, 15.4 per cent and 15.3 per cent in that order.

International Breweries Plc, Transcorp Plc, Linkage Assurance Plc and Julius Berger Nigeria Plc appreciated by 11.7 per cent, 10.1 per cent, 7.0 per cent and 4.9 per cent respectively.

On the downside, Transcorp Plc led the price losers with 23.1 per cent, trailed by Jaiz Bank Plc with 17.9 per cent. Fidson Healthcare   Plc shed 16.6 per cent, while AXA Mansard Insurance Plc and Diamond Bank Plc went down by 15.7 per cent and 15.0 per cent in order.

Other top price losers were: FBN Holdings Plc (14.5 per cent); Oando Plc (13.4 per cent); FCMB Group Plc (12.5 per cent); Cadbury Nigeria Plc(12.3 per cent); Okomu Oil Palm Plc (12.2 per cent).