27 February 2016

Nigeria: Stock Trading - Sell-Off Continue As Investors Loses N67 Billion

Lagos — Trading activities in the equity segment of the Nigerian Stock Exchange (NSE) during the trading period of the week ride on negative trend of last week with N67 billion lose.

The bourse dipped by 0.83 per cent week on week amid rising volume. The All Share Index closed lower at 24,228.79 points. The market breath closed in favor of the bears as more equities closed in red in all but the second and last trading sessions of the week.

Transaction level by volume and value both improved by 272 per cent and 22 per cent respectively in contrast to last week's closing levels. In the week under review, a total of 4.47 billion shares valued at N11.74 billion were exchanged in 13,755 number of deals compared to 1.20 billion shares valued at N9.64 billion exchanged in 13,337 deals recorded in the previous trading week.

Many analysts believed that the recent equities performance is reflective of the varied impact of the weak domestic macro backdrop on domestic asset classes.

During the week investors traded cautiously as macro risk events remain on the horizon.

Analysts at United Capital Plc expect equities to continue to oscillate between gains and losses in line with recent patterns. They said, the pull from attractive dividends should drive some pockets of demand ahead of the earnings season.

Day by day trading shows that equities commence the week in red as market capitalization decreased by N4 billion to N8.399 trillion. However, the total value and volume traded increased significantly by 547.3 per cent and 547.5 per cent to N5.9 billion and 3.4 billion units mostly driven by large volumes traded in Tiger Brands (3,285,789,119 units). Market breadth closed lower as 16 share prices appreciated, compared to the 19 stocks which saw prices decline.

Oil and Gas sector defies negative sector trend: driven by gains in Seplat Petroleum Development Company, the Oil and Gas sector continued to gather momentum, returning +1.1 per cent despite losses in Oando. However, the Consumer Goods sector posted a -0.2 per cent loss, attributable to losses in 7-Up Bottling Company. The Financial services sector came behind with negative returns of -0.2 per cent on the back of losses of -0.4 per cent in Guaranty Trust Bank and Zenith Bank which more than cancelled gains seen in Access Bank stock. The industrial goods sector remained largely unchanged as Dangote Cement and Lafarge Africa traded flattish.

Profit-taking in Dangote Cement weighs on market momentum on Tuesday when market capitalization depreciated by N114 billion. Also the NSE All Share Index berthed at 1.36 per cent after shedding a further 332.99 basis points predominately driven by sell-off in Dangote Cement. The total value and volume traded also decreased by 78.9 per cent and 94.1 per cent to N1.3 billion and 201.7 million units respectively. Reflective of bearish market sentiments, market breadth declined as 12 share prices appreciated, compared to the 26 stocks which saw their stock prices decline

Consumer Goods sector resilient amid broad based sector losses: Driven by 1.8 per cent gains in 7-Up Bottling Company, the Consumer Goods sector closed higher, returning 0.4 per cent. Whilst on the other hand, the Industrial Goods sector returned -3.8 per cent due to -4.9 per cent losses recorded by Dangote Cement despite 5 per cent gains seen in Lafarge Africa. The Financial services sector also came in behind with negative returns of -1.0 per cent on the back of losses in Ecobank Transnational Incorporated with -3.9 per cent, Access Bank with -0.2 per cent and Zenith Bank with -0.1 per cent even as losses of -4.9 per cent in Oando and -0.70 per cent in Mobil Nigeria pushed the Oil and Gas sector return lower by 0.4 per cent.

The mid-week trading however records losses for the third consecutive session, sheds another N68 billion.

Consequently, the benchmark index slid further south by 0.9 per cent to close at 23,833.34 points. The total value traded decreased by a marginal 3.3 per cent to N1.22 billion from N1.26 billion, while volume traded increased by 33.6 per cent to settle at 269.5 million units. Market breath also came in at a bearish as 13 equity prices rose while 23 stocks declined.

-1 per cent losses in Access Bank, Ecobank Transnational Incorporated with -1.3 per cent, Guaranty Trust Bank with -3.8 per cent and Zenith Bank with -5 per cent, the financial services sector returned -2.8 per cent. Also, -0.9 per cent losses in 7-Up Bottling Company and -4.9 per cent in Guinness Nigeria forced the Consumer Goods sector to settle at -0.8 per cent. However, the Oil and Gas, and the Industrial goods sectors closed flat on the back of flattish trading in Dangote Cement, Seplat Petroleum Development Company and Oando stocks.

Equities market halts losing streak on Thursday as the benchmark index returned 0.67 per cent to close at 24,042.73 points, driven by modest gains across sectors. As a result, market capitalisation added N55 billion to settle at N8.272 trillion. The total value and volume traded also increased by 26.4 per cent and a marginal 3.3 per cent to settle at N1.54 billion traded and 271.6 million units from 269.5 million units. Market breath came in at a strong as 21 equity prices rose while 19 stocks declined.

When the trading close for Thursday positive sentiment cuts across the major sectors despite -1.1 per cent losses in Nigerian Breweries the Consumer Goods sector closed 0.2 per cent higher, on the back of 2.1 per cent appreciation in Nestle Nigeria. Driven by gains in Stanbic IBTC, Ecobank Transnational Incorporated, and Zenith Bank, the financial services sector also returned 1.3 per cent, despite losses in Access Bank. In the same vein, the Oil and Gas and Industrial goods sectors saw a positive return of 0.7 per cent apiece, driven by gains in Seplat Petroleum Development Company and Dangote Cement.

The equities market closed Friday on a positive note, as NSE All Share Index appreciated by 0.77 per cent to close at 24,228.79 basis points, compared with the 0.67 per cent appreciation recorded previously.

Market turnover closes positive as volume moved up by 3.23 per cent against 0.79 per cent uptick recorded in the previous session. FCMB, Access Bank and WAPIC Insurance were the most active to boost market turnover. Guaranty Trust Bank and Zenith Bank topped market value list.

Twenty-one equities appreciated in price during the week, lower than 22 equities of the previous week. Thirty-five depreciated in price, lower than 37equities of the previous week, 134 equities remained unchanged, higher than 131 equities recorded in the previous week.

Seplat Petroleum Development Company Plc led gainers chart with N37.52 kobo per share to close at N340.00 kobo, followed by Nestle Nigeria Plc with N15.00 kobo to close at N715.00 kobo, Lafarge Africa Plc with N4.52 kobo to close at N84.52 kobo, Unilever Nigeria Plc with N1.02 kobo to close at N29.00 kobo per share and GlaxoSmithKline Consumer Nigeria Plc with N0.8 kobo to close at N224.98 kobo per share.

Others on the chart are, Ecobank Transnational Incorporated Plc with N0.36 kobo to close at N15.96 kobo, Eterna Plc with N0.14 kobo to close at N1.90 kobo, NASCON Allied Industries Plc with N0.14 kobo to close at N7,00 kobo, Vitafoam Nigeria Plc with N0.14 kobo to close at N4.60 kobo, and Ikeja Hotel Plc with N0.13 kobo to close at N3.02 kobo.

On the other hand Dangote Cement Plc led on the losers table with N4.83 kobo loss to close at N135.00 kobo, MRS Oil Nigeria Plc lost N2.48 kobo to close at N47.18 kobo, Guaranty Trust Bank Plc with N0.97 kobo to close at N15.90 kobo, Flour Mills Nigeria Plc with N0.97 kobo to close at N17.43 kobo, Cadbury Nigeria Plc with N0.66 kobo to close at N17.20 kobo.

Others on the chart are, UAC of Nigeria Plc with N0.57 kobo to close at N19.90 kobo, NCR Plc with N0.55 kobo to close at N10.47 kobo, Cement Company of Northern Nigeria Plc with N0.30 kobo to close at N8.70 kobo, Oando Plc with N0.28 kobo to close at N3.20 kobo per share and Fidson Healthcare Plc with N0.25 kobo loss to end the week at N2.44 kobo per share.

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