Daily Market Performance: Commentary


Market Heads Down Again, But Insurance Stocks Defy Gravity ::
>>Wednesday 16/01/2008


Bearish Trade Day

Trading on the Nigerian Stock Exchange closed Wednesday with the market generally heading down. Insurance was, it turned out, the only resistant sector, as most insurance stocks defied the downward market pull. Only four of the over 20 listed insurance companies lost value in the day's trading, while about 16 gained. The rest maintained their opening prices. The market closed lower also on market capitalisation, turnover volume and value of transactions, in a trading mood that reflected some pricing caution.

NSE Jan '08 trend to 11/1/08

The day's losses brought the All-share index down by 293 points or 13%, with top losers as MOBIL (N10.00), AP (N10.00), OANDO (N5.88), GUINNESS (N2.90), ASHAKACEM (N2.47) and NESTLE (N2.00). After months of a fairy tale price spiral, AP would seem to be signaling a pedaling down. Though more stocks (67) gained than lost (46), the losses were generally heavier in value, forcing down the index. The major gains were by CHEVRON (N10.51), TOTAL (N6.00), ETI (N4.00), UBA (N1.40) and CADBURY (N1.28). Overcoming several months in the price doldrums following its financial reporting fiasco, Cadbury Nigeria is lately proving to be regaining market interest. It has notched up some decent price gains in recent trading. See full price chart of the day's trading here. Many small-cap companies continued to power up in value. Top value (%) gain positions were mainly taken by low-priced stocks. Only Chevron and Platinum were above-N10 stocks that featured in the top ten value gains list. Bigtreat maintained its steady price rise, picking 45 kobo in today's trading. View the full relative price gains chart here.

TOP TRADES - 16/01/2008
Company Value
N'Bn		 Units
('000)		 Price
Change (N) 		Closing
(N)
OCEANIC
.802
28,675
 Price gain
0.43
27.85
FIDELITYBK
.610
50,438
 Price gain
0.57
12.13
INTERCONT
.536
13,038
 Price gain
0.11
41.11
GUARANTY
.462
13,591
 Price gain
0.12
33.88
FIRSTBANK
.413
9,590
 Price gain
0.56
42.50
LASACO
.356
84,525
 Price loss
0.20
4.23
DANGSUGAR
.345
8,011
 Price gain
0.00
44.20
PLATINUM
.329
12,293
 Price gain
1.27
26.78
UBA
.282
5,524
 Price gain
1.40
51.00
CUSTODYINS
.270
46,022
 Price loss
0.28
5.95
Read Full Trading Results here»

Trade volume was led by the insurance sector which dominated the top 10 volume list, with only Fidelity Bank, Transcorp and Oceanic Bank squeezing in. The most purchased insurance stocks were LASACO, Custodian and Allied, Staco, Crusader, NEM, Equity Assurance, Continental Re and International Energy, in that order. Banks, however, dominated the rank of top 10 value of transactions executed. The heaviest investment went into Oceanic (recent excellent Q1 report), followed by Fidelity Bank, Intercontinental Bank, Guaranty Trust Bank and First Bank. LASACO, Dangote Sugar, Platinum Habib, UBA and Custodian and Allied Insurance completed the top ten.

Meanwhile, in half-year results to November 30, 2007, just turned in, PZ Industries grew its profit-after tax by a decent 17%, if you consider the tough business environment that manufacturers have to contend with. Turnover growth was even better at 24%, from N24.1 billion in the preceding year to N29.9 billion in the current period.

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