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Analysts say market resurgence remains elusive
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Market hopefuls were again disappointed last week as the bears sustained their dominance.
According to reports from Lead Capital, the NSE all share index and total market capitalisation both lost 159 basis points. Transactions were also downbeat as reflected by the 5.28 percent decline in total volume traded. Value traded on the other hand surged by 4.96 percent, which indicates that trades were dominated by the larger capped stocks.
First Inland Bank closed the week under review as the most traded stocks with investors staking over 286 million units of the banking concern. Universal Insurance came closely behind with over 270 million units traded. With the exception of newly listed Aso Savings that traded over 94 million units, the other stocks in this category were all banking concerns.
Despite the bearish market outlook, certain stocks were invulnerable as they recorded price upswings for the week under review. Newly listed Bagco led this list with a 15.59 percent price appreciation to close at N8.38. In line with market tradition, the stock might rally for a few more trading day. On the flip side, NAHCO shed 19.70 percent to lead the bottom losers’ chart.
The week under review saw several companies release their results on the floor of the Nigerian stock exchange. Chevron Oil posted a N1.95 billion full year profit after tax for December 2007 year end.
The company is also proposing a N7.50k dividend payment with June 5, 2008 as the closure date. Ecobank’s full year result ended December 2007 saw the banking concern post a N7.4 billion profit after tax as against N3.5 billion the previous year. RT Briscoe posted a 21.67 percent growth in its first quarter PAT. Despite the recorded growth, investors were unfavourably disposed as the stock slid by 4.29 percent to close at N25.01.
Insurance concern Staco, was also able to record a 54.23 percent growth in its full year results ended December 2007 bottom line. NAHCO’s astonishing 82.94 percent growth in PAT couldn’t translate to a positive price change as the stock slumped by 19.70 percent at the end of proceedings. The aviation servicing company grew its top and bottom lines by 42.83 percent and 82.94 percent respectively.
Lafarge Wapco’s PAT dwindled by 26.40 percent. It appears investors were unimpressed as the stock was punished for its dismal performance.
Cement Company of Northern Nigeria came out of a loss position of N18.26 million to PAT of N135 million for first quarter ended March 2008. Eterna Oil & Gas released its full year result ended December 2008 on the floor of the stock exchange. Investors reacted negatively to the N135 million loss after tax recorded as the stock lost 9.36 percent for the week under review. The other result saw Continental Reinsurance grow its PAT by 398.33 percent.
The Reinsurance concern is also proposing a dividend payment of 5k per share. Investors were unfavourably disposed to the result and corporate action as the stock came down by 11.58 percent to close at N4.75.
Investors’ activities in the banking sub-sector were characterized with mixed sentiments for the week under review. First Inland Bank emerged as the best performing banking stock. The stock garnered 12.94% to close N11.52.
Fidelity chalked up 10.00 percent to close at N11.00. Afribank (up 6.57%), Diamond Bank (3.93%), UBA (1.86%) and Intercontinental Bank (0.15%) all closed at N25.94, N18.50, N54.70 and N45.54 respectively.
Performance in the agro allied sector was rather impressive as most stocks recorded price appreciations. Presco managed a 1.88% price upside to close at N17.85. Okitipupa, Aba Textiles and Afprint all closed on a flat note.
Investors were unfavourably disposed to Okomu oil as it shed 4.98 percent to close at N30.33.
Known for their price stability, the performance of the Breweries and Beverages sector didn’t fall short of expectation. Nigerian Bottling Company and Nigerian Breweries both notched up 2.70 percent and 6.23 percent respectively for the week under review. While 7up bottling Company and Guinness Nigeria slid by 2.25 percent and 0.38 percent respectively. International Breweries also shed 5.7 percent to close at N8.04. In recent times, the Nigerian Beverages and Breweries industry has experienced some form of stagnancy in terms of activity and performance. However, with the two major players accounting for almost 50 percent of total market capitalisation, the sector is still a force to be reckoned with, especially within the Nigerian capital market.
The outlook of the breweries and beverages industry looks very positive and there is a growth potential.
Investors’ activities in the cement industry were characterized with conflicting sentiments for the week under review. Ashaka and Lafarge Wapco suffered the most hits as they dropped 10.83 percent and 14.25 percent respectively for the week under review. The latter appears to have been punished for its first quarter 26.40 percent decline bottom line result. The company attributes the downturn in performance to the use of imported clinker in order to limit the impact on profitability of approximately 18 days outages in natural gas supply, which restricted the operations of kilns during the quarter. However, since mid- March 2008, natural gas supply has been stable to their production facilities.
Benue Cement Company and Cement Company of Northern Nigeria recorded 1.10% and 5.50% price upswings.
The Chemical & Paints sector witnessed minimal price declines for the week under review. DN Meyer took the most hit shedding 9.67 percent. Technical analysis on Tuesday, 28th of April revealed the stock traded with an offer position of 1.207million units. Others include Berger Paints (down 5.50%) and Cap (down 3.97%).
Fringe player, G. Cappa garnered 10.21 percent to emerge as the best performing stock in the construction industry. UAC Property also notched up 3.64 percent to close at N22.80. Investors were unfavourable disposed to Costain (West Africa) as it shed 5 percent at the end of the week under review. Market forces reveal the stock has been closing on an offer position. The sector appears to be experiencing some market correction and profit taking.
The Petroleum sector recorded notable price declines with Mobil Nigeria taking the most hit (down 17.26%). The company marked down its share price on Wednesday, April 30, 2008 for its dividend payment of N4.70 and bonus issue of 1 for 5. Conoil and Oando were not left out as they both recorded a 4.11percent and 1.29 percent slump in prices respectively. Chevron’s full year result spiced with generous corporate action failed to translate to price appreciation as the stock closed on a flat note. Total had a marginal gain of 1.85 percent added to its share price.
The insurance sector reflected the bearish market mood as most stocks in this sector recorded price declines. With the exception of AIICO that recorded a 12.16 percent price movement, most stocks recorded losses or closed marginally.
Once investors’ favourite, the sector appears to be undergoing market correction of some sort and resurgence is expected in the weeks ahead.
While some analysts attribute the market downturn to liquidity constraint caused by pronouncements on margin trades. Others say there is no need to panic, that the market is simply correcting itself. A downturn is expected after a boom period in a business cycle. However, the attractive prices of most stocks should boost market performance in the next few trading days.
According to reports from Lead Capital, the NSE all share index and total market capitalisation both lost 159 basis points. Transactions were also downbeat as reflected by the 5.28 percent decline in total volume traded. Value traded on the other hand surged by 4.96 percent, which indicates that trades were dominated by the larger capped stocks.
First Inland Bank closed the week under review as the most traded stocks with investors staking over 286 million units of the banking concern. Universal Insurance came closely behind with over 270 million units traded. With the exception of newly listed Aso Savings that traded over 94 million units, the other stocks in this category were all banking concerns.
Despite the bearish market outlook, certain stocks were invulnerable as they recorded price upswings for the week under review. Newly listed Bagco led this list with a 15.59 percent price appreciation to close at N8.38. In line with market tradition, the stock might rally for a few more trading day. On the flip side, NAHCO shed 19.70 percent to lead the bottom losers’ chart.
The week under review saw several companies release their results on the floor of the Nigerian stock exchange. Chevron Oil posted a N1.95 billion full year profit after tax for December 2007 year end.
The company is also proposing a N7.50k dividend payment with June 5, 2008 as the closure date. Ecobank’s full year result ended December 2007 saw the banking concern post a N7.4 billion profit after tax as against N3.5 billion the previous year. RT Briscoe posted a 21.67 percent growth in its first quarter PAT. Despite the recorded growth, investors were unfavourably disposed as the stock slid by 4.29 percent to close at N25.01.
Insurance concern Staco, was also able to record a 54.23 percent growth in its full year results ended December 2007 bottom line. NAHCO’s astonishing 82.94 percent growth in PAT couldn’t translate to a positive price change as the stock slumped by 19.70 percent at the end of proceedings. The aviation servicing company grew its top and bottom lines by 42.83 percent and 82.94 percent respectively.
Lafarge Wapco’s PAT dwindled by 26.40 percent. It appears investors were unimpressed as the stock was punished for its dismal performance.
Cement Company of Northern Nigeria came out of a loss position of N18.26 million to PAT of N135 million for first quarter ended March 2008. Eterna Oil & Gas released its full year result ended December 2008 on the floor of the stock exchange. Investors reacted negatively to the N135 million loss after tax recorded as the stock lost 9.36 percent for the week under review. The other result saw Continental Reinsurance grow its PAT by 398.33 percent.
The Reinsurance concern is also proposing a dividend payment of 5k per share. Investors were unfavourably disposed to the result and corporate action as the stock came down by 11.58 percent to close at N4.75.
Investors’ activities in the banking sub-sector were characterized with mixed sentiments for the week under review. First Inland Bank emerged as the best performing banking stock. The stock garnered 12.94% to close N11.52.
Fidelity chalked up 10.00 percent to close at N11.00. Afribank (up 6.57%), Diamond Bank (3.93%), UBA (1.86%) and Intercontinental Bank (0.15%) all closed at N25.94, N18.50, N54.70 and N45.54 respectively.
Performance in the agro allied sector was rather impressive as most stocks recorded price appreciations. Presco managed a 1.88% price upside to close at N17.85. Okitipupa, Aba Textiles and Afprint all closed on a flat note.
Investors were unfavourably disposed to Okomu oil as it shed 4.98 percent to close at N30.33.
Known for their price stability, the performance of the Breweries and Beverages sector didn’t fall short of expectation. Nigerian Bottling Company and Nigerian Breweries both notched up 2.70 percent and 6.23 percent respectively for the week under review. While 7up bottling Company and Guinness Nigeria slid by 2.25 percent and 0.38 percent respectively. International Breweries also shed 5.7 percent to close at N8.04. In recent times, the Nigerian Beverages and Breweries industry has experienced some form of stagnancy in terms of activity and performance. However, with the two major players accounting for almost 50 percent of total market capitalisation, the sector is still a force to be reckoned with, especially within the Nigerian capital market.
The outlook of the breweries and beverages industry looks very positive and there is a growth potential.
Investors’ activities in the cement industry were characterized with conflicting sentiments for the week under review. Ashaka and Lafarge Wapco suffered the most hits as they dropped 10.83 percent and 14.25 percent respectively for the week under review. The latter appears to have been punished for its first quarter 26.40 percent decline bottom line result. The company attributes the downturn in performance to the use of imported clinker in order to limit the impact on profitability of approximately 18 days outages in natural gas supply, which restricted the operations of kilns during the quarter. However, since mid- March 2008, natural gas supply has been stable to their production facilities.
Benue Cement Company and Cement Company of Northern Nigeria recorded 1.10% and 5.50% price upswings.
The Chemical & Paints sector witnessed minimal price declines for the week under review. DN Meyer took the most hit shedding 9.67 percent. Technical analysis on Tuesday, 28th of April revealed the stock traded with an offer position of 1.207million units. Others include Berger Paints (down 5.50%) and Cap (down 3.97%).
Fringe player, G. Cappa garnered 10.21 percent to emerge as the best performing stock in the construction industry. UAC Property also notched up 3.64 percent to close at N22.80. Investors were unfavourable disposed to Costain (West Africa) as it shed 5 percent at the end of the week under review. Market forces reveal the stock has been closing on an offer position. The sector appears to be experiencing some market correction and profit taking.
The Petroleum sector recorded notable price declines with Mobil Nigeria taking the most hit (down 17.26%). The company marked down its share price on Wednesday, April 30, 2008 for its dividend payment of N4.70 and bonus issue of 1 for 5. Conoil and Oando were not left out as they both recorded a 4.11percent and 1.29 percent slump in prices respectively. Chevron’s full year result spiced with generous corporate action failed to translate to price appreciation as the stock closed on a flat note. Total had a marginal gain of 1.85 percent added to its share price.
The insurance sector reflected the bearish market mood as most stocks in this sector recorded price declines. With the exception of AIICO that recorded a 12.16 percent price movement, most stocks recorded losses or closed marginally.
Once investors’ favourite, the sector appears to be undergoing market correction of some sort and resurgence is expected in the weeks ahead.
While some analysts attribute the market downturn to liquidity constraint caused by pronouncements on margin trades. Others say there is no need to panic, that the market is simply correcting itself. A downturn is expected after a boom period in a business cycle. However, the attractive prices of most stocks should boost market performance in the next few trading days.
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