Stock Market Retreats on Profit Taking

Goddy Egene Abiodun

Eromosele Summary of Daily Performance

The market had last Monday resumed on a negative note despite intraday interest in some banks shares such as FBN Holdings Plc, ETI Plc, Zenith Bank Plc and Access Bank Plc, which added a cumulative 95.09pts to the All-Share Index. At closing bell, the ASI declined on last minute selloffs in Dangote Cement Plc to close the session lower by 0.78 per cent. Therefore, the index remained at 34,730.95 points with a corresponding market capitalisation of N11.84 trillion. However, market activity was mixed in terms of volume and value of trades. While total market volume was up by 25.2 per cent, market turnover declined by 22.9 per cent. The Banking sector typically accounted for most of the sessions trades (41.5% of value traded), while Nigerian Breweries Plc was the most active stock in terms of volumes. At the close of the session, 395 million units of shares valued at N2.70 billion were exchanged in 4,497 deals.

The market remained southward on Tuesday as the NSE ASI depreciated by 0.62 per cent to close at 34,507.85 points, compared with the depreciation of 0.81 per cent recorded yesterday. The depreciation in the Index on the day could be attributed to the losses recorded in the share prices of some highly capitalised stocks such as: Lafarge Arica Plc, Unilever Nigeria Plc, Guinness Nigeria Plc, Nigerian Breweries Plc and Guaranty Trust Bank Plc, amongst others. Similarly, the market capitalisation depreciated by 0.62 per cent to close at N11.76 trillion, compared with the depreciation of 0.82 per cent recorded yesterday to close at N11.83trn. The total value of the stocks traded on Tuesday on the floors of the NSE was N3.29 billion, up by 21.96 per cent from N2.70 billion traded the prior day.

On Wednesday, the combined weight of UBA Plc (+37.88pts), ETI Plc (+35.63pts) and Guaranty Trust Bank Plc (+30.99pts) barely offset the declines by Nigerian Breweries Plc (-140.44pts) and Zenith Bank Plc (-38.07pts). The benchmark index thus advanced by a mere 19 points to close at 34,529 points with a corresponding market capitalization of N11.77 trillion. In terms of market activity, there was a slight improvement in turnover (up 6.10%), while volume of trades dipped marginally by 3.30%. A total of 343 million units of shares valued at N3.49 billion were exchanged in 5,500 deals. Trades in the banking sector accounted for 69 per cent of total market volumes, while Nigerian Breweries Plc emerged the most active stock, accounting for about 12 per cent of value transacted.

A negative performance was recorded on the bourse on Thursday as the index mildly declined by 0.10 per cent to close at 34,494.36 points. The market was depressed by sell pressure on Zenith Bank Plc, Guaranty Trust Bank Plc and Unilever Nigeria Plc, which trimmed a cumulative 167.01 points off the index. Market capitalisation also shed N11.96 billion to close at N11.75 trillion for the day. There was however a significant improvement in market activity as turnover went up by 58.1 per cent while volume of trades dipped marginally by 5.1 per cent. A total of 542 million units of shares valued at N3.56 billion were exchanged in over 5,000 deals. Trades in the banking sector accounted for 40 per cent and 58 per cent of total market volumes and value.

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 market closed the week on a negative note as the ASI depreciated by 0.02 per cent to close at 34,485.72 points, compared with the depreciation of 0.10 per cent recorded the prior

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 day. The depreciation in the Index was as a result of the losses recorded in the share prices of Forte Oil Plc, Oando Plc, Zenith BankPlc, Access Bank Plc and Nigerian Breweries, amongst others. Similarly, the market capitalisation depreciated by 0.02 per cent to close at N11.751trillion, compared with the depreciation of 0.10 per cent recorded the previous day to close at N11.753 trillion. Market Turnover

A turnover of 2.064 billion shares worth N17.179 billion in 25,577 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.919 billion shares valued at N19.402 billion that exchanged hands the previous week in 23,988 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.605 billion shares valued at N9.900 billion traded in 14,438 deals; thus contributing 77.79 per cent and 57.63 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with a turnover of 214.683 million shares worth N1.580 billion in 1,604 deals. The third place was occupied by the Consumer Goods Industry with 84.940 million shares worth N3.036 billion in 4,313 deals.

Trading in the Top Three Equities namely- United Bank for Africa Plc, Transnational Corporation of Nigeria Plc and Standard Alliance Insurance Plc, (measured by volume) accounted for 670.960 million shares worth N2.308 billion in 3,133 deals, contributing 32.51 per cent and 13.43 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 2.942 million units of Exchange Traded Products (ETPs) valued at N70.679 million executed in 47 deals compared with a total of 408,933 units valued at N7.019 million transacted the previous week in 30 deals.

A total of 9,450 units of Federal Government Bonds valued at N10.824 million were traded this week in 9 deals compared with a total of 10 units of Federal Government Bonds valued at N10,792.74 transacted the previous week. Gainers and Losers

Meanwhile, the price movement chart of the NSE showed that a total of 42 equities appreciated in price during the week, lower than 46 equities of the preceding week. Thirty-three equities depreciated in price, higher than 28 equities of the preceding week, while 120 remained unchanged lower than 122 equities of the preceding week.

The top 10 gainers were: PZ Industries Plc (N4.33), Flour Mills Nigeria Plc (N2.99), Onado Plc (N1.44), RT Briscoe Plc (17 kobo), Neimeth International Plc (18 kobo), NPF Micro Finance Bank Plc (22 kobo), Portland Paints Plc (51 kobo), A.G. Leventis Nigeria (13 kobo), WAPIC Insurance Plc (4 kobo) and Associated Bus Company Plc (4 kobo).

On the other hand, the top 10 losers included: Total Nigeria Plc (N17.55), Nigerian Breweriesl Plc (N10.29), Unilever Nigeria Plc Plc (N3.43), Ikeja Hotel Plc (N1.07), Costain Plc (16 kobo), Trans Nationwide Express (18 kobo), Livestock Feeds Plc (29 kobo), Fidelity Bank Plc (23 kobo), UBA Capital Plc (14 kobo) and Eterna Plc (23 kobo).