Published On: Tue, Oct 13th, 2015

Stock Market succumbs to sell pressure as All-Share Index slump by -1.38%; Forte Oil leads gainers

Transactions on the Nigerian Bourse were on for five days. The market commenced on a negative note as the market witnessed more of sell pressure which outweighs bargain trading. The downtrend was sustained at the second, third and fourth sessions as the bears’ dominate market. However, on the fifth session, the Bulls’ returned such that the aggregate market index turned negative in the process with a loss of -1.38%. There were 22 gainers, 17 losers and 68 unchanged equities on Friday. 

The All-Share Index depreciated by -1.38% to close at 30,165.22 basis points from 30,588.41 basis points as opposed to an increase of +0.15% penultimate Friday. Subsequently, the market capitalization of equities equally lowered to N10.367 Trillion from N10.512 Trillion last week. The depreciation of the Index was as a result of losses recorded in stocks of Nigerian Breweries Plc, Seplat Plc, Guinness Nigeria Plc, CCNN Plc and FCMB Plc.

Number of Deals stood at 2,500 and the volume of transactions was 188.039 million units, valued at N1.331 billion.

Top of the gainers’ on Friday are Forte Oil Plc which appreciated by N1.33 kobo; followed by Ashaka Cement Plc which went up by N0.41 k; Guaranty Trust Bank Plc rose by N0.33 kobo; 7Up Bottling Co. Plc grew by N0.30 kobo while Inter brew Plc crept up by N0.29 kobo in the process.

The laggards are led at the close of trading on Friday by Nigerian Breweries Plc which slumped by N1.05 k Plc. This was followed by Seplat Plc which dipped by N1.00 k; Guinness Nigeria  Plc went down by N0.89 kobo; CCNN Plc slides by N0.41 kobo while FCMB Plc depreciates by N0.16 kobo. 

Voluminous transactions were predominant on Friday in Stocks of Access Bank Plc (106.714 million shares), FCMB Plc (7.665 million Shares), Unity Bank Plc (7.611 million shares), FBN Holdings Plc (7.419 million shares), and Transcorp Plc (6.383 million shares).

BANKING SECTOR PERFORMANCE.

Stocks from the Banking sub-sector of the Financial Services sector were among the best performing shares on Wednesday. This was followed by Oil & Gas and Conglomerates sectors.

The banking stocks and pricing are responding to the forces of demand and supply.

Top gainers in the Banking sector during the week were Unity Bank Plc which appreciated by +24.62%; UBA Plc leaps by +3.77%; FBN Holdings Plc grew by +1.61%; while Stanbic IBTC Holdings Plc crept up by +1.10% in the process.

Top laggards in the banking sector during the week are FCMB Plc which depreciated by -11.06%; closely followed by Diamond Bank Plc that shed -7.58%; Skye Bank slide by -4.35%; ETI dipped by -3.93% while Guaranty Trust Bank Plc crept low by – 2.95% in the process.

High volume stock transactions were also evident in most banking stocks especially Access Bank, Zenith Bank, Guaranty Trust Bank and First Bank. Panicked sell-off in the banking sector cannot be ruled out but as expected, it gives room for buying opportunity.

Acquiring Banks position shows that the share price of Access Bank depreciated by -0.38%; Union Bank dropped by -2.44%; ETI went down by -3.93%; FCMB  slumped by -11.06; Skye Bank slides by -4.35% while Sterling Bank was price static.

 OTHER MARKET ISSUES.

UBA Plc: The Company recorded an impressive second quarter result where its revenue grew by +21% from N138.2 Billion in the preceding year to N166.9 Billion. Similarly, its profit before tax leaps from N28.9 billion previously to N39.0 billion, which translates to an increase of +35%. The profit after tax also rose to N32.0 billion from N22.9 billion, an increase of +40%.

Guinness Nigeria Plc: In its audited result 2015, its revenue grew from N109.202 billion in the preceding year to N118.496 billion, translating to an increase +8.51%.

However, its profit after tax dips from N9.573 billion previously to N7.795 billion, a decrease of -18.57%. Consequently, a dividend of 320 kobo per share was appropriated.

Closure is on 12 October, 2015 while payment will be on 27 November, 2015 and AGM is slated for 26th November, 2015 @ Transcorp Hilton Hotel, Abuja.

Guaranty Trust Bank Plc: in its second quarter result 2015, gross earnings grows by +15% from N132.985 billion in the preceding year to N152.995 billion. Similarly, its profit after tax leapt significantly from N44.008 billion previously to N53.373 billion, translating to an increase of +21%.

Consequently, an interim dividend of 25 kobo per share was appropriated. Closure is on 8 September, 2015 while payment will be on 21 September, 2015.

Access Bank Plc: The Company recorded an impressive second quarter result where its revenue grew by +43% from N117.932 Billion in the preceding year to N168.642 Billion. Similarly, its profit before tax leaps from N27.118 billion previously to N39.113 billion, which translates to an increase of +44%.

The profit after tax also rose to N31.287 billion from N22.587 billion, an increase of +39%. Consequently, an interim dividend of 25 kobo per share was appropriated. Closure is on 5 September, 2015 while payment will be on 10 September, 2015.

Zenith Bank Plc: In its second Quarter result 2015, its turnover grew from N184.435 billion in the preceding year to N229.082 billion, translating to an increase +24.2%.

Similarly, its profit after tax leaps from N47.445 billion previously to N53.180 billion, an increase of +12.1%. Consequently, an interim dividend of 25 kobo per share was appropriated. Closure is on 21 August, 2015 while payment will be on 28 August, 2015.

Total Nigeria Plc: The Company recorded an impressive second quarter result where its revenue slumped by -7% from N120.152 Billion in the preceding year to N111.974 Billion.

However, its profit before tax leaps from N3.421 billion previously to N3.681 billion, which translates to an increase of +8%. The profit after tax dips to N1.967 billion from N2.178 billion a decrease of -10%.

Lafarge Africa Plc: In its second Quarter result 2015, its turnover grew from N55.356 billion in the preceding year to N116.709 billion, translating to an increase +110.83%. Similarly, its profit after tax leaps from N15.557 billion previously to N26.209 billion, an increase of +68.47%.

Mobil Oil Plc: in its second quarter result 2015, gross earnings dips by -24.52% from N42.167 billion in the preceding year to N31.828 billion.

Similarly, its profit after tax slumped significantly from N4.816 billion previously to N2.910 billion, translating to a decrease of -39.57%. If the trend is not reversed by the last (4th) quarter, the company may not be able to sustain its dividend payout.

FBN Holdings Plc: in its second quarter result 2015, gross earnings leaps by +28.0% from N212.000 billion in the preceding year to N271.300 billion. Similarly, its profit after tax grew from N37.180 billion previously to N40.061 billion, translating to an increase of +7.7%.

Union Bank Plc: in its second quarter result 2015, gross earnings leaps by +5.8% from N52.883 billion in the preceding year to N55.958 billion. Its profit before tax also grows from N6.468 billion previously to N6.614 billion, an increase of +2.3%. Similarly, its profit after tax grew from N6.343 billion previously to N6.458 billion, translating to an increase of +1.8%.

Fidelity Bank Plc: in its second quarter result 2015, gross earnings leaps by +13.6% from N63.258 billion in the preceding year to N71.890 billion. Similarly, its profit after tax grew from N8.017 billion previously to N8.214 billion, translating to an increase of +2.5%.

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