The domestic equities market opened the week on a positive note as buying interest in BUACEMENT (+2.0%), GUARANTY (+1.6%) and FLOURMILL (+10.0%) buoyed the All-Share index 29bps to settle at 24,766.12 points. Consequently, investors gained ₦37.8bn as market capitalisation increased to ₦12.9tn while YTD loss eased to -7.7%. Activity level improved as volume and value traded advanced 83.6% and 34.5% to 186.5m units and ₦1.3bn respectively. The top traded stocks by volume were TRANSCORP (23.4m units), CUSTODIAN (19.1m units) and GUARANTY (18.2m units) while GUARANTY (₦411.6m), ZENITH (₦134.3m) and CUSTODIAN (₦97.7m) led by value.
Performance across sectors was mixed albeit positively skewed as 3 of 6 indices under our coverage advanced save the Oil & Gas and AFR-ICT indices which closed flat. The Industrial Goods and Banking indices advanced 0.8% and 0.7% respectively due to buying interest in BUACEMENT (+2.0%), CUTIX (+3.0%), GUARANTY (+1.6%) and UBA (+1.6%). Similarly, the Consumer Goods index rose 0.1% owing to price appreciation in FLOURMILL (+10.0%) and HONYFLOUR (+5.0%). On the flip side, the Insurance index was the lone laggard, depreciating 2.4% on the back of losses in CUSTODIAN (-7.3%), AIICO (-9.6%) and NEM (-5.0%).
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.2x from the 1.3x recorded previously as 19 stocks advanced against the 16 decliners. The top gainers were NEIMETH (+10.0%), FLOURMILL (+10.0%) and UPL (+9.9%) while UACN (-10.0%), AIICO (-9.6%) and MBENEFIT (-8.7%) lost the most. We believe the performance of the market this week would be majorly dictated by the trend in earnings releases.
FLOUR MILLS PLC. (Unaudited FY:2020 Result): Revenue rose 8.8% y/y to ₦573.8bn from ₦527.4bn in FY:2019 while profit after tax advanced 184.4% to ₦11.4bn from ₦4.0bn in FY:2019.
GUINEA INSURANCE PLC. (Unaudited H1:2020 Result): Gross premium written fell 32.0% y/y to ₦514.4m from ₦756.2m in H1:2019 while the company reported a loss after tax of ₦100.3m from a ₦538.3m loss in H1:2019.
CHAMPIONS BREWERIES PLC. (Unaudited H1:2020 Result): Revenue fell 2.1% y/y to ₦3.3bn from ₦3.4bn in H1:2019 while profit after tax fell 42.5% to ₦120.1m from ₦208.8m in H1:2019.
CHAMS PLC. (Unaudited H1:2020 Result): Revenue fell 53.5% y/y to ₦910.1m from ₦2.0bn in H1:2019 while the company reported a loss after tax of ₦13.1m from a ₦226.0m profit in H1:2019.
Market Statistics for Monday, 3rd August 2020
|Market Cap (N’bn)||12,919.47|
|Market Cap (US$’bn)||33.9|
|NSE All-Share Index||24,766.12|
|Daily Performance %||0.3|
|WTD Performance %||0.3|
|MTD Performance %||0.3|
|QTD Performance %||1.2|
|YTD Performance %||(7.7)|
|Daily Volume (Million)||186.5|
|Daily Value (N’bn)||1.3|
|Daily Value (US$’m)||3.6|