29 January 2018

Nigeria: Market Sheds N462.9 Billion On Profit Taking

The bullish trading that has characterised the equities market since the beginning of 2018 was halted last week as investors locked in profits. Having recovered in 2017, the rally was sustained in the first weeks of 2018 with the market hitting 10- year high the previous week. However, most investors moved in to realise some of the gains posted in the past weeks.

Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell by 2.9 per cent to close at 43,773.76, while market capitalisation shed N462.9 billion to close lower at N15.692 trillion last Friday.

Similarly, all other indices finished lower during the week with the exception of the NSE Consumer Goods and NSE Oil/Gas Indices that appreciated by 2.15 per cent and 0.08 per cent respectively while the NSE ASeM Index closed flat.

The NSE Banking Index, which had recommended the highest growth this year, topped the losers chart last week falling by down 6.4 per cent. The NSE Insurance Index trailed, declining 3.3 per cent.

Daily Performance

The market recorded a mixed performance on the first day of the week with the index falling by 0.40 per cent, while volume and value of trading surged.

Market analysts attributed the decline to sell offs across board with GTBank Plc, Nestle Nigeria Plc and Unilever Nigeria Plc. However, Transcorp Plc led the price losers' table with 9.2 per cent, trailed by Unilever Nigeria Plc with 5.9 per cent. Sterling Bank Plc went down by 4.7 per cent.

Diamond Bank Plc , Honeywell Flour Mills Plc and Champion Breweries Plc shed 4.7 per cent, just as NPF Microfinance Bank Plc, May and Baker Nigeria Plc and Eterna Plc fell by 4.6 per cent among others.

On the other hand, Caverton led the price gainers with 9.9 per cent, trailed by Wema Bank Plc with 9.4 per cent. Skye Bank Plc and Unity Bank Plc appreciated by 9.3 per cent and 6.5 per cent, just as Cadbury Nigeria Plc and Jaiz Bank Plc chalked up 6.2 per cent and 5.1 per cent. Meanwhile, investors traded 4.436 billion shares worth N15.927 billion in 8,572 deals.

Profit taking at the stock market continued on Tuesday as more stocks shed value under sell pressure. A total of 43 equities depreciated while only 14 appreciated. The NSE ASI fell by 1.16 per cent to close at 44,389.85, while market capitalisation shed N187 billion to close at N15.9 trillion.

Commenting on the market analysts at FSDH said: "There was sell pressure in the equity market, a combination of profit taking and price corrections predominantly in the banking sector stocks. The downward trend may likely continue till midweek."

Fidelity Bank Plc led the price losers with 9.16 per cent, trailed by A.G Leventis Nigeria Plc with 9.0 per cent. Linkage Assurance Plc shed 8.7 per cent, while Transcorp Plc, FBN Holdings Plc and FCMB Group Plc went down by 5.7 per cent, 5.3 per cent and 5.2 per cent in that order.

Diamond Bank Plc, Julius Berger Nigeria Plc, Redstar Express Plc and University Press Plc closed 5.0 per cent lower apiece.

On the other side, Skye Bank Plc led the price gainers with 9.9 per cent, trailed by Caverton with 9.8 per cent. Unity Bank Plc garnered 9.2 per cent, just as UACN Property Development Plc, Unilever Nigeria Plc and Cutix Plc chalked up 5.0 per cent each.In terms of sectoral performance, three sectors declined, while two appreciated.

The NSE Banking Index led the losers with 2.6 per cent as GTBank (-2.8 per cent), Zenith Bank (-2.3 per cent) and UBA (-5.0 per cent) declined. The NSe Insurance Index shed 2.4 per cent, while NSE Goods Index went down by 0.7 per cent.On the flip side, the NSE Consumer Goods Index led the gainers with 0.7 per cent, followed by NSE Oil & Gas Index with 0.1 per cent.

The market extended its negative performance to the third day yesterday as more investors took profit with the benchmark index shedding 0.96 per cent to close at 43,963.40, while market capitalisation shed N143 billion to close at N1576 trillion.

According to analysts at Cordros Capital, the possibility of continued profit taking remains high.

"But that said, our theme on the market remains positive, on the back of favorable macro economic conditions," they said.

Also commenting on the performance, analysts at FSDH Merchant Bank said market breadth and investor sentiments remained weak as there was continued sell pressure that resulted in a number of stocks on offer

"With the sustained profit taking recorded this week, a rebound in the market is likely as the outlook remains positive," they added.

In all, 43 stocks declined while 11 appreciated. FCMB Group Plc led the price losers, shedding 9.7 per cent. Diamond Bank Plc trailed with 9.6 per cent, while Fidelity Bank Plc went down by 9.5 per cent. Sterling Bank Plc and Transcorp Plc declined by 9.3 per cent.

On the positive side, May & Baker Nigeria Plc led the price gainers with 4.9 per cent, trailed by Transexpress with 4.0 per cent. WAPIC Insurance Plc chalked up 3.6 per cent, just as Cement Company of Northern Nigeria Plc and Learn Africa Plc garnered 3.4 per cent, 2.1 per cent respectively.

The bears remained in control of the stock market for the fourth consecutive day, pulling the down the index by 0.99 per cent to close at 43,529.06.

However, 21 stocks escaped from the charging bears to close higher. Dangote Sugar Refinery Plc led them with 10.16 per cent. African Prudential Plc and United Bank for Africa Plc followed with 4.1 per cent and 4.1 per cent respectively.

FBN Holdings Plc chalked up 4.0 per cent while Access Bank Plc 3.9 per cent.

Trans-nationwide Express Plc and WAPIC Insurance Plc garnered 3.8 per cent and 3.8 per cent in that order. Other top gainers included: Livestock Feeds Plc (3.1 per cent); Linkage Assurance Plc (2.7 per cent); Flour Mills of Nigeria Plc (2.6 per cent).

Contrarily, Glaxosmithkline Consumers Nigeria Plc led the price losers for the day with 9.6 per cent. Caverton trailed with 9.4 per cent. Diamond Bank Plc and Skye Bank Plc shed 9.2 per cent apiece just as Unity Bank Plc and Wema Bank Plc depreciated by 9.1 per cent and 8.4 per cent respectively.

Other top price losers were: Honeywell Flour Mills Plc (6.2 per cent); Stanbic IBTC Holdings Plc (4.9 per cent); FCMB Group Plc (4.8 per cent) and Eterna Plc (4.7 per cent).

The bulls returned on Friday leading to a recovery of 0.56 per cent in the index to close the week at 43,773.76.

Market Turnover

Meanwhile, a total of 7.157 billion shares worth N42.545 billion in 39,037 deals were traded last week by investors compared with 5.011 billion shares valued at N45.816 billion that exchanged hands the previous week in 44,569 deals.

The Conglomerates Industry led the activity chart with 4.110 billion shares valued at N10.016 billion traded in 2,454 deals, thus contributing 57.43 per cent and 23.54 per cent to the total equity turnover volume and value respectively.

The Financial Services Industry, which is known for its leading position on the activity chart, occupied the second place with 2.757 billion shares worth N25.398 billion in 25,853 deals. The third place was occupied by Consumer Goods Industry with a turnover of 156.224 million shares worth N5.304 billion in 5,875 deals.

Trading in the top three equities namely, Transnational Corporation of Nigeria Plc, FCMB Group Plc and Skye Bank Plc, accounted for 4.786 billion shares worth N11.341 billion in 5,216 deals, contributing 66.86 per cent and 26.66 per cent to the total equity turnover volume and value respectively.

Price Gainers and Losers

A look at the price movement table showed that 30 stocks appreciated lower than 40 of the previous week, while 44 equities depreciated in price, higher than 32 equities of the previous week.

WAPIC Insurance Plc led the price gainers with 10.9 per cent, trailed by Dangote Sugar Refinery Plc that appreciated by 9.8 per cent. NASCON Allied Industries Plc advanced 9.6 per cent, while Trans-Nationwide Express Plc and PZ Cussons Nigeria Plc added 8.0 per cent and 6.8 per cent respectively.

Other top price gainers included: Nigerian Breweries Plc (6.7 per cent); UACN Property Development Company Plc (6.6 per cent); Dangote Flour Mills Plc ( 6.5 per cent); Cutix Plc (5.7 per cent).

The price losers were led by Diamond Bank Plc with 26.1 per cent, trailed by Champion Breweries Plc with 20.6 per cent, while Transnational Corporation of Nigeria Plc shed 18 per cent. Sterling Bank Plc went down by 16.6 per cent, just as Honeywell Four Mills Plc and NPF Microfinance Bank Plc lost 13.4 per cent. FCMB Group Plc shed 12.3 per cent, while AXA Mansard Insurance Plc closed 11.2 per cent lower. GTBank Plc and Eterna Plc fell by 10.4 per cent and 9.6 per cent in that order.

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