… as All-Share Index dipped further by 1.10%; Forte Oil leads gainers.
DENNIS OKONNE |
Transactions on the Nigerian Bourse were on for five days. The market commenced on a positive note as the market witnessed more of bargain trading which outweighs sell pressure. The uptrend was reversed at the second session as the bears’ dominated market and it was sustained on the third session. However, on the fourth session the Bulls’ returned and was sustained in the fifth session such that the aggregate market index remains negative in the process with a loss of -1.10%. There were 19 gainers, 20 losers and 67 unchanged equities on Friday.
The All-Share Index depreciated by -1.10% to close at 29,834.21 basis points from 30,165.22 basis points as opposed to a decrease of -1.38% penultimate Friday. Subsequently, the market capitalization of equities equally lowered to N10.253 Trillion from N10.367 Trillion last week.
The depreciation of the Index was as a result of losses recorded in stocks of Mobil Oil Plc, Guinness Nigeria Plc, Transcorp Hotels Plc, ETI Plc and Flour Mills Plc.
Number of Deals stood at 2,510 and the volume of transactions was 357.364 million units, valued at N2.336 billion.
Top of the gainers’ on Friday were Forte Oil Plc which appreciated by N10.00 kobo; followed by UAC of Nigeria Plc which went up by N1.20 k; Zenith Bank Plc rose by N0.66 kobo; Guaranty Trust Bank Plc grew by N0.47 kobo while Nigerian Breweries Plc crept up by N0.31 kobo in the process.
The laggards were led at the close of trading on Friday by Mobil Oil Plc which slumped by N7.00 k. This was followed by Guinness Nigeria Plc which dipped by N1.00 k; Transcorp Hotels Plc went down by N0.68 kobo; ETI Plc slides by N0.55 kobo while Flour Mills Plc depreciated by N0.31 kobo.
Voluminous transactions were predominant on Friday in Stocks of Cap oil Plc (200.000 million shares), Guaranty Trust Bank Plc (44.008 million Shares), Continental Insurance Plc (15.195 million shares), UBA Plc (13.048 million shares), and ETI Plc (11.132 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 were responding to the forces of demand and supply.
Top gainers in the Banking sector during the week were Zenith Bank Plc which appreciated by +7.42%; FCMB Plc leaps by +4.78%; Skye Bank Plc grew by +2.73%; while Guaranty Trust Bank Plc crept up by +0.77% in the process.
Top laggards in the banking sector during the week were Access Bank Plc which depreciated by -9.23%; closely followed by Unity Bank Plc that shed -7.41%; Union Bank slide by -4.84%; FBN Holdings Plc dipped by -4.76% while Diamond Bank Plc crept low by -4.59% 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 -9.23%; Union Bank dropped by -4.84%; ETI went down by -0.27%; FCMB appreciated by +4.78; Skye Bank rose by +2.73% while Sterling Bank was price static.
OTHER MARKET ISSUES.
Forte Oil Plc: In its third quarter result 2015, its turnover dropped from N122.581 billion in the preceding year to N91.616 billion, translating to a decrease -25.3%.
However, its profit after tax leapt from N4.016 billion previously to N4.285 billion, an increase of +6.7%.
UBA Plc: The Company recorded an impressive third quarter result 2015 where its revenue grew by +17.3% from N210.715 Billion in the preceding year to N247.205 Billion.
Similarly, its profit before tax leapt from N42.543 billion previously to N57.366 billion, which translates to an increase of +34.8%. The profit after tax also rose to N48.557 billion from N33.628 billion, an increase of +44.4%.
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 was 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 would 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.