Market reconsiders earnings stance, as CCNN, Trancorp, others tops gainers chart

The trading activities on the floor of the Nigerian stock market for the week ended July 27th, 2018 closed mildly positive adding 58 basis points, after the All-share Index grew from 36,427.22 points it previously closed, to round off the week at 36,636.97 points.

In the buildup to the second quarter earnings season, expectations of possible market upturn were heightened but as the results pumps in, market sentiment tends to be cold and seemingly good results received low attentions as evident in their persistent declining prices. The tide appears to have turned, most companies that just released their half year results for the period ended June 30, 2018 appeared on the top of the gainers list to close the week, as most traders are now beginning to do comparison and analysis on what stock to take position in, so as to maximize their gains.

Market capitalisation grew 0.58% closing at N13.272 trillion from the previous close of N13.196 trillion thereby gaining N76 billion.

Volume of traded stocks appreciated by 81.85% closing at 311.36 million units; and value also appreciated by 17.12% to close at N3.49 billion.

Market Breadth

The market breadth closed positive as 30 stocks gained as against 9 that lost

Percentage Gainers

CCNN, Dangote Sugar, Union Diagnostic and Wapic led the percentage gainers, all gaining 10%, closing. CCNN closed at N31.35 from N28.5; Dangote Sugar closed at 16.5 from the previous close of N15; Union Diagnostic Closed at N0.22 from the previous close of 0.2 and Wapic closed at N0.44 from N0.4.

Vitafoam, Dangote Flour and AG Leventis also grew 9.85%, 9.7%, and 9.52% respectively ahead other stocks on the gainers list.

Percentage Losers

There were 9 stocks on the losers’ chart as Secure Electronic Technology (NSLTECH) tops the percentage, losing 9.09% of its share price. NPF Microfinance Bank and Berger Paints also shed 8.72% and 6.43% respectively among others.

Volume Drivers

Zenith Bank traded about 31 million units of it shares in 290 deals, worth about N743million while UBA traded 32 million units in 232 deals valued at N310.8 million



As at the day its second quarter results was released with a fantastic 161% profit after tax, Transcorp PLC’s equity price opened at N1.23, and after two consecutive sessions closed barely 3.2% higher at N1.27, after which it subsequently decline to a low of about N1.14 before another major price growth attempt. The market seems to be looking in the direction of the conglomerate again as it gained 3.39% on Friday to close at N1.22, after it resisted visible sell down attempt.

We observed that the equity price rise was adequately backed with higher volume of trade at about 12.5million units as against the 6.5million units transacted the previous trading session.

Though the offer size at 359,246 outweigh the lean bid size of 30,250, if at the open of trade on Monday the resistant price of N1.24 is sustained, we might likely see another two days of rally in Transcorp, so keep tab on the stock.





Unarguably, this stock has one of the best years-to-date returns of above 200% in the market, and going by its just released half year reports, it might just still have a long way to go.

Its reported earnings for the period ended June 3, 2018 came in with over 152% with its earning per share growing from 82 kobo to N2.07.

It closed today at a maximum bid of 164,079,000 at a price of N31.35, which is maximum 10% above the previous N28.5 it closed.

From all indication, the stock might move higher, though it’s currently trading outside the upper Bollinger band and might in the medium term signify an overbought level which may not be suitable for a fresh entry. But watch, the stock has lot of potential to grow higher, especially if it sustains its current higher high.

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