Business
Market sustains gains as ASI rises by +0.11%; Total Nigeria Plc leads gainers
Transactions on the Nigerian Bourse were on for four days as Friday, 29th May (democracy day) was declared public holiday. The market commenced on a negative note as the market witnessed more of sell pressure which outweighs bargain trading. The downtrend was reversed at the second session as the bulls’ dominate market and the tempo was sustained in the third session.
However, in the fourth session, the Bears’ returns to dominate market such that the aggregate market index turns positive in the process with a gain of +0.11%. There were 30 gainers, 27 losers and 51 unchanged equities on Thursday.
The All-Share Index appreciated by +0.11% to close at 34,310.37 basis points from 34,272.09 basis points as opposed to a decrease of -0.49% penultimate Friday. Subsequently, the market capitalization of equities equally rose to N11.658 Trillion from N11.644 Trillion last week. The appreciation of the Index was as a result of gains recorded in stocks of Total Nigeria Plc, Guinness Nigeria Plc, Seplat Plc, Presco Plc and Flour Mills Plc.
Number of Deals stood at 4,676 and the volume of transactions was 711.262 million units, valued at N11.658 billion.
Top of the gainers’ on Thursday are Total Nigeria Plc which appreciated by N15.00 kobo; followed by Guinness Nigeria Plc which went up by N7.28 k; Presco Plc rose by N3.20 kobo; Seplat Plc grew by N3.20 kobo while Flour Mills Plc crept up by N1.35 kobo in the process.
The laggards are led at the close of trading on Thursday by Nestle Nigeria Plc which slumped by N10.00 k Plc. This was followed by Forte Oil Plc which dipped by N9.00 k; Mobil Oil Plc went down by N2.76 kobo; Nigerian Breweries Plc slides by N1.90 kobo while Zenith Bank Plc depreciated by N0.56 kobo.
Voluminous transactions were predominant on Thursday in Stocks of UBA Plc (287.679 million shares), Wapic Insurance Plc (96.326 million Shares), FBN Holdings Plc (81.334 million shares), Access Bank Plc (31.756 million shares), and Diamond Bank Plc (31.535 million shares).BANKING SECTOR PERFORMANCE.
Stocks from the Banking sub-sector of the Financial Services sector were among the best performing shares on Friday. 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 are Unity Bank Plc with a gain of +21.19%; followed by Skye Bank Plc which appreciates by +7.00%; UBA rose by +5.26%; FBN Holdings Plc grew by +2.51% while stocks of Fidelity Bank Plc went up by +1.58% in the process.
Top laggards in the banking sector during the week are Zenith Bank Plc which depreciates by -3.64%; Union Bank Plc slides by -3.62%; FCMB Plc slumps by -1.59%; Access Bank Plc drops by -0.95% while Sterling Bank Plc dips by -0.94% 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 depreciates by -0.95%; Union Bank slumps by -3.62%; ETI slides by -0.78%; FCMB creeps low by -1.59% while Sterling Bank dips by -0.94%.
MARKET TREND:
Generally, banking equities are reacting to the forces of demand and supply as seen this week. Active transactions were prevalent in blue chips of Banking, Building materials, Conglomerates, Food and Beverages, Healthcare, Breweries and Petroleum sectors. BH verdict: The economy is expanding, corporate profits are rising and valuations are attractive.
OTHER MARKET ISSUES.
Nigerian Breweries Plc: In its First Quarter result 2015, its turnover grew from N68.976 billion in the preceding year to N69.921 billion, translating to an increase +1.37%. However, its Profit before tax slumped to N14.438 billion from N14.710 billion previously, a decrease of 1.83%. Its profit after tax rose marginally from N10.059 billion previously to N10.105 billion, an increase of +0.45%.
Guinness Plc: In its third Quarter result 2015, its turnover leaps from N78.018 billion in the preceding year to N84.750 billion, translating to an increase +9%. However, its Profit before tax slumped to N7.134 billion from N7.823 billion previously, a decrease of -9%. Similarly, its profit after tax nose-dived from N5.943 billion previously to N5.216 billion, a decrease of -12%.
Mobil Nigeria Plc: in its first quarter result 2015, gross earnings dips by -26% from N22.410 billion in the preceding year to N16.499 billion. Similarly, its profit after tax slumped significantly from N3.864 billion previously to N1.488 billion, translating to a decrease of -61%.
UACN Plc: in its audited result 2014, gross earnings rose by +8.82% from N78.714 billion in the preceding year to N85.654 billion. Similarly, its profit after tax rose significantly from N9.873 billion previously to N10.726 billion, translating to an increase of +8.64%. Consequently, a dividend of 175 kobo per share was appropriated. Closure date is 6th July, 2015 while payment date is 30th July, 2015. Annual General Meeting (AGM) is slated for 29th July, 2015 @ Golden Tulip, Festac Hotel, Lagos.
Dangote Cement Plc: In its first quarter result 2015, its Gross Earnings rose from N103.569 billion in the preceding year to N114.737 billion, translating to an increase +10.78%. Similarly, its profit after tax also leaps from N47.619 billion previously to N68.618 billion, an increase of +44.10%.
Total Nigeria Plc: in its first quarter result 2015, gross earnings dips by -1.0% from N60.595 billion in the preceding year to N60.042 billion. Similarly, its profit after tax slumped significantly from N1.069 billion previously to N223.217 million, translating to a decrease of -79%.
FCMB Plc: In its audited result 2014, its Gross Earnings rose from N130.995 billion in the preceding year to N148.637 billion, translating to an increase +13.5%. Similarly, its profit after tax also grew from N16.001 billion previously to N22.133 billion, an increase of +38.3%.
Consequently, a final dividend 25 kobo per share was proposed for sharing amongst its shareholders, from 30 kobo per share previously. Closure of register is 30th March, 2015; Payment date is 24th April, 2015 while AGM will take place on 23rd April, 2015 @ Shell Hall, Muson Center, Onikan, Lagos.
PZ Plc: in its third quarter result, gross earnings rose by +0.56% from N52.594 billion in the preceding year to N52.889 billion. However, its profit after tax slumped significantly from N3.866 billion previously to N2.787 billion, translating to a decrease of -27.91%.
Consequently, an interim dividend of 20 kobo per share was appropriated. Closure date is 30th March, 2015 while payment date is 7th April, 2015.
