Equities Market Sheds 2.4% as Investors Ignore Corporate Earnings

By Goddy Egene

Despite the release of corporate earnings by many companies, the Nigerian equities market closed last week downtick following profit taking in bellwether stocks.

Three of the five trading were bearish pushing the Nigerian Stock Exchange (NSE) All-Share Index (ASI) to close 2.38 per cent lower at 32,124.94. 

Similarly, market capitalisation shed N285.6 billion to end at N11.728 trillion.  The year-to-date (YTD)   decline worsened to 16 per cent.

Daily performance

The week started on a positive note last Monday as investors reacted positively to nine month corporate earnings of companies released the preceding week.

Gains by 17 stocks, including market leader, Dangote Cement Plc, Zenith Bank Plc, Guaranty Trust Bank Plc and Stanbic IBTC Holdings Plc, lifted the market capitalisation by N105 billion to N12.119 trillion.

The NSE All-Share Index appreciated by 0.88 per cent to close higher at 33,196.07, thus moderating the year-to-date decline to 13.2 per cent. Although   the market recorded 17 price gainers and losers apiece, bellwethers among the price gainers influenced the positive close for the day.

However, on the first trading session, Consolidated Hallmark Insurance Plc led the price gainers with 10 per cent, trailed by LASACO Assurance Plc with 6.6 per cent. Stanbic IBTC Holdings Plc chalked up 6.5 per cent, while WAPIC Insurance Plc garnered 4.7 per cent.

Stanbic IBTC Holdings Plc last week reported a jump of  54 per cent and 59 per cent in profit before tax (PBT) and profit after tax (PAT) respectively for the nine months ended September 30, 2018. Specifically,  PBT increased  to N70.380 billion, from N45.650 billion, while  PAT  grew faster  from N37.672 to N59.75 billion.

Market operators said the   price gain posted by Stanbic IBTC showed investors’ bullish response to the positive results.

Similarly, GTBank Plc appreciated  by  4.0 per cent, just as Transcorp Plc, Honeywell Flour Mills Plc and Sterling Bank Plc garnered 3.9 per cent, 3.4 per cent and 3.3 per cent in that order.

Forte Oil Plc,  Zenith Bank Plc and  United Bank for Africa Plc were also among the price gainers, rising by 2.8 per cent, 1.8 per cent and 1.2 per cent respectively.

Conversely, Unity Bank Plc led the price losers with 10 per cent, trailed by Diamond Bank Plc with 9.7 per cent.  Royal Exchange Plc shed 9.0 per cent, just as AIICO Insurance Plc and Meyer Plc went down by 8.8 per cent each.

Meanwhile, on that day, activity level was mixed as volume traded fell by 46.3 per cent to 150.0 million shares m units while value traded rose 46.7 per cent to N2.9 billion indicating investors’ interest in bellwethers.

Zenith Bank Plc (28.4 million shares), GTBank (28.3 million shares) and FCMB  Holdings Plc (15.4 million shares) were the top traded stocks by volume while GTBank (N1.1 billion), Zenith Bank(N0.7 billion) and Dangote Cement (N0.5 billion) led by value.

But on the second day, the market pared gains of the previous day as elevated sell pressures impacted market performance. As a result, the ASI NSE shed 0.1 per cent to settle at 33,167.88.

It was majorly affected by FBN Holdings Plc, which lost 8.3 per cent, Zenith Bank 3.1 per cent   and Seplat 4.6 per cent while gains in Dangote Cement Plc (+1.7%) cushioned the losses recorded.  

Market capitalisation also shed N10.3 billion to settle at N12.1 trillion.

However, activity level strengthened as volume and value traded spiked by 105.4 per cent and 108.4 per cent to 309.1 million shares and N6 billion respectively. The top traded stocks by volume were GTBank (57.6 million shares), Sterling Bank Plc (57.0 million shares), and FCMB Holdings Plc (41.1 million shares) while the top traded stocks by value were GTBank (N2.2 billion), Dangote Cement Plc(N1.6 billion) and Nigerian Breweries Plc (N616.6 million).

The market extended   losses following sustained sell pressures amidst weak investor appetite. Sell pressures in Dangote Cement (-3.2 per cent), Stanbic IBTC Ban (-10 per cent), and Nigerian Breweries  (-6.4 per cent ) depressed  the market by  2.1 per cent  to settle at 32,466.27.

In line with market performance, market capitalisation shed N256.1billion to settle at N11.9 trillion.

Activity level also fell as volume and value traded trended lower by 31.3 per cent and 37.2 per cent to 212.5 million shares and N3.8 billion respectively.

The top traded stocks by volume were GTBank(43.6 million shares), Zenith Bank (29.6 million), and FCMB Holdings Plc  (22.1 million shares) while the top traded stocks by value were GTBank (N1.6 billion), Zenith Bank (N695.8 million) and Nigerian Breweries  (N572.8 millio).   

The sell pressure persisted at the stock market on last Thursday to extend the negative performance to the third day running.

Consequently, the NSE ASI went down by 1.4 per cent to close at 32,006.65, while market capitalisation shed N167.8 billion to close at N11.7 trillion.

A total of 24 stocks depreciated compared to only 11 that appreciated. Cadbury Nigeria Plc led with 10 per cent, followed by CAP Plc with 9.9 per cent. Eterna Plc and Cement Company of Northern Nigeria Plc went down by 9.9 and 9.8 per cent in that order.

Other top price losers included: African Prudential Plc(9. 8 per cent); Dangote Flour Mills Plc (8.3 per cent); Dangote Sugar Refinery Plc (7.9 per cent); Veritas Kapital Assurance Plc (7.4 per cent).

On the positive side,   Japaul Oil & Maritime Services Plc led the price gainers with 10 per cent, followed by Neimeth Pharmaceuticals Plc with 9.0 per cent. WAPIC Insurance Plc and Learn Africa Plc garnered 7.5 per cent and 7.2 per cent respectively.

Activity level, however, increased   as volume and value traded moved higher by 67.4 per cent and 29 per cent  to 355.7 million shares  and N4.9 billion respectively. The top traded stocks by volume were FCMB Holdings Plc (168.7 million shares), GTBank (85.8 million shares), and Zenith Bank Plc  (24.4 million shares) while the top traded stocks by value were GTBank (N3.2 billion), Zenith Bank Plc (N562.9 million) and FCMB Holdings  (N261.2 million).

Market Turnover

Meanwhile, the market recorded total turnover of 1.267 billion shares worth N20.346 billion in 15,088 deals last week in contrast to a total of 1.454 billion shares valued at N15.263 billion that exchanged hands last week in 16,682 deals.

The Financial Services Industry led the activity chart with1.082 billion shares valued at N12.735 billion traded in 8,397 deals, thus contributing 85.3 per cent and 62.6 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 83.168 million shares worth N 3.295 billion in 2,888 deals. The third place was Conglomerates Industry with a turnover of 32.817 million shares worth N 109.846 million in 654 deals.

Trading in the top three equities namely – First City Monument Bank Plc, Guaranty Trust Bank Plc and Zenith Bank Plc accounted for 670.295 million shares worth N11.019 billion in 2,768 deals, contributing 52.9 per cent and 54.2 per cent  to the total equity turnover volume and value respectively.

Also traded during the week were a total of 15,168 units of Exchange Traded Products (ETPs) valued at N216,251 executed in nine  deals compared with a total of 280,563 units valued at N3.385 million that was transacted last week in 10 deals.

A total of 14,581 units of Federal Government Bonds valued at N14.472 million were traded last week in 34 deals compared with a total of 20,430 units valued at N20.729 million transacted  the  previous week  in 45 deals.

Price Gainers and Losers

A look at the price movement chart showed that 18 equities appreciated in price during the week, lower than 26) in the previous week, while 50 equities depreciated in price, higher than 42 of the previous week.

Presco  Plc led the price gainers with 12.9 per cent, trailed by Neimeth International Pharmaceuticals Plc with 11.1 per cent. Consolidated Hallmark Insurance Plc and Newrest ASL Nigeria Plc garnered 10 apiece.

 Other top price gainers Included: C & I Leasing Plc (9.8 per cent); Livestock Feeds Plc (9.6 per cent); International Breweries Plc (8.2 per cent); Learn Africa Plc (7.2 per cent); Mutual Benefits Assurance Plc (7.1 per cent) and Sterling Bank Plc (6.6 per cent).

Conversely, Unity Bank Plc led the price losers with 21.1 per cent, trailed by Dangote Flour Mills Plc with 21.0 per cent. Cement Company of Northern Nigeria Plc and Meyer Plc and Diamond Bank Plc shed 18.8 per cent, 17.6 per cent and 16.6 per cent in that order.

Other top price losers were: FBN Holdings Plc (15.0 per cent); Fidson Healthcare Plc (14.8 per cent); Niger Insurance Plc (14.2 per cent); PZ Cussons Nigeria Plc (13.0 per cent) and Eterna Plc (12.2 per cent).