NSE LIVE! Equities remain negative as more companies declare earnings

In from Success Allantee

Quoted equities continued to trade in the negative yesterday at the Nigerian Stock Exchange (NSE) in spite of a torrent of corporate earnings. Not less than 20 companies released their corporate earnings yesterday, but the overall market position at the stock market further dipped by 0.34 per cent, shaving off N35 billion from market capitalisation.

While the breadth of the downtrend moderated with 16 advancers to 29 decliners, losses by many highly capitalised stocks compounded the negative overall market situation. The All Share Index (ASI), the common value-based index that tracks prices of all quoted shares, declined by 0.34 per cent to a new low of 30,510.95 points as against its opening index of 30,614.81 points.

Aggregate market value of all quoted companies also dropped from its opening value of N10.493 trillion to close at N10.458 trillion. The sustained depreciation worsened the average year-to-date return at the Nigerian stock market to -11.96 per cent.

Analysts said the market situation was not helped by corporate earnings, which showed largely negative performance for several companies.

Afrinvest Securities said investors’ sentiment is expected to remain largely weak because of what the firm described as weak corporate earnings.

“Hence, we expect that the market will continue to keep an eye on economic fundamentals in the interim whilst dividend paying stocks will also continue to attract value in the depressed state of the market,” Afrinvest Securities stated.

Some of the major companies that released their interim earnings reports yesterday included Julius Berger Nigeria, Seven-Up Bottling Company, Lafarge Africa, FCMB Group, Ecobank Transnational Incorporated, Mobil Oil Nigeria and Presco Plc. In one of the reports, FCMB Group reported 11 per cent growth in gross earnings to N77.35 billion in first half 2015 as against N69.62 billion in comparable period of 2014. However, profit before tax dropped by 14 per cent from N11.14 billion to N9.57 billion while profit after tax declined by 13 per cent from N9.58 billion to N8.3 billion.

Guinness Nigeria led the losers with a drop of N4.60 to close at N134. Seplat Petroleum Development Company followed with a loss of N4 to close at N315. GlaxoSmithKline Consumer Nigeria dropped by N2 to close at N40. CAP depreciated by N1.95 to close at N37.95. Nigerian Breweries lost N1.02 to close at N122. Ashaka Cement slipped by 91 kobo to N21.01. Unilever Nigeria dropped by 60 kobo to N37. Oando lost 54 kobo to close at N12.42. Berger Paints dwindled by 51 kobo to N9.80 while UACN Property Development Company dropped by 50 kobo to close at N9.55.

Financial services stocks remained the drivers of activities. Zenith Bank was the most active stock with a turnover of 59.96 million shares worth N994.05 million in 355 deals. Guaranty Trust Bank followed with a turnover of 34.52 million shares worth N839.7 million in 322 deals. FBN Holdings placed third with a turnover of 18.13 million shares valued at N136.2 million in 367 deals. Altogether, a total of 222.69 million shares valued at N4.39 billion were traded in 3,607 deals.

On the positive side, Mobil Oil Nigeria recorded the highest gain of N5.98 to close at N155.98. Beta Glass followed with a gain of N1.97 to close at N41.47. Flour Mills of Nigeria rose by 98 kobo to close at N28.98. Dangote Cement added 51 kobo to close at N170.52 while Champion Breweries chalked up 25 kobo to close at N5.36 per share.

Ripples… without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now