Total stock plunges to 5-year low at NSE trading on Monday 

Total Nigeria Plc’s stock fell to a 5-year low at close of trading session on the Nigerian Stock Exchange (NSE) on Monday, as the market continues on bearish trend.

Total stock opened at N140, and closed at N130, down N10 percent. Year to date, the stock is down 38.1 percent and trading at 5–year low.

This comes as investors confidence remain low on account of absence of a macroeconomic direction from the fiscal authorities. The country’s president, Muhammadu Buhari is yet to appoint a cabinet, four months after being reelected for second term in office.

However, the company specific factors likely responsible for the decline include hike in finance costs and company’s unimpressive result.
Net finance costs jumped from N614 million in 2018 to N1.7 billion in 2019, due to an increase in interest rate on overdraft and loans.

Total’s results for the first quarter ended March 2019 saw revenue rise marginally by 2 percent, from N75.6 billion in 2018 to N77.4 billion in 2019. The company incurred a N418 million loss before tax in 2019, as against a N2.6 billion profit before tax in 2018. The company also made a loss after tax of N474 million in 2019, as against a N1.6 billion profit the year before.