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Positive corporate earnings to lift equity trading





The release of more half year, H1’18, positive corporate results will spike trading on the Nigerian Stock Exchange, NSE, this week as equity trading drew to a positive close, finishing 58 bases points, bps, higher last weekend, majorly supported by oil and gas stocks.

Meanwhile, analysts have listed FCMB Plc which released positive earnings as stock to watch for the week.

Analysts at Vetiva Capital Management Limited stated:

“Though the market managed a positive performance at week close we believe the outcome of earnings releases will remain the major determinant of market direction in this week.

“That said, we foresee a mildly positive start to the week, noting the widely positive market breath at week close.

“FCMB is a stock top watch as it released its first half, H1’18 results earlier today, Friday. The company recorded an eight percent Year-on-Year (YoY) rise in gross earnings, in line with Vetiva estimate, and a 90 percent YoY increase in Profit After Tax (PAT) 19 percent below Vetiva estimates.

“The stock gained 355bps on Friday to settle at N2.04, a 38 percent Year to Date, YtD return.”

Meanwhile, analysis of market performance showed that the All Share Index, ASI, recorded a modest 9 bps growth Week-on-Week (WoW) amidst notable losses recorded at mid-week.

The NSE All-Share Index and market capitalisation appreciated by 0.09 percent to close the week at 36,636.97 and N13.272 trillion respectively.

Similarly, all other indices finished higher with the exception of the NSE Premium, NSE Consumer Goods, NSE Oil/Gas, NSE Industrial Goods, NSE Pension Indices that depreciated by 0.16 percent, 0.19 percent, 3.74 percent , 4.40 percent and 0.56 percent respectively.

Thirty-one (31) equities appreciated in price last week, higher than sixteen (16) in the penultimate week. Forty-eight (48) equities depreciated in price, lower than fifty-nine (59) equities of the penultimate week, while ninety (90) equities remained unchanged lower than ninety-four (94) equities recorded in the penultimate week.

A total turnover of 1.417 billion shares worth N16.739 billion in 19,832 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.665 billion shares valued at N14.834 billion that exchanged hands last week in 18,795 deals.

The Financial Services Industry (measured by volume) led the activity chart with 832.842 million shares valued at N8.823 billion traded in 10,851 deals; thus contributing 58.76 percent and 52.71 percent to the total equity turnover volume and value respectively.

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