Stock Exchange all share index falls by 0.35 per cent

Activities on the floor of the Nigerian Stock Exchange have continued to fall having significant effect across all boards.

The numbers of registered stocks have also fallen as 33 stocks depreciated, with only 13 stocks gaining and 124 stocks maintaining their prices per share at the close of Tuesday’s trading activities. Whereas on Monday, 14 stocks gained, 26 fell while 130 remained unchanged.

Although, the number of shares traded and the number of deals made on Tuesday increased from 160 million shares in 3,120.00 deals to 164 million shares in 3,448.00 deals, the value decreased from 221 billion Naira on Monday, to the valued of 161 on Tuesday

The All Share Index, ASI, also fell from 35,410.61 basis points on Monday to 35,288.23 basis points on Tuesday.

While the market capitalisation fell from N12,928 trillion on Monday, to close on Tuesday at N12,883 basis points.

Gainers
On the gainers’ list, MUTUAL BENEFITS ASSURANCE PLC led by 0.03 kobo or 10.00 per cent to close at 0.33 kobo per share after opening at 0.30 kobo per share.

CUSTODIAN INVESTMENT PLC followed with a 0.51 kobo or 9.94 per cent gain to close at N5.64 per share while the third position was occupied by LIVESTOCK FEEDS PLC which opened transaction at 0.63 kobo per share and closed at 0.69 kobo per share, gaining 0.06 kobo or 9.52 per cent.

Losers
On the losers’ table, ASSOCIATED BUS COMPANY PLC which opened at 0.40 kobo per share to close at 0.36 kobo per share, falling by 0.04 kobo or 10.00 per cent.

While the second position is occupied by UNION DIAGNOSTIC & CLINICAL SERVICES PLC which opened transactions at 0.30 kobo per share, closed on Tuesday at 0.27 kobo per share, falling by 0.03 kobo or 10.00 per cent.

While NORTHERN NIGERIAN FLOUR MILLS PLCfell by 0.70 kobo or 9.72 per cent to close at N6.50 kobo per share after opening at N7.20 kobo per share.

 

 

NSE lifts suspension on Universal Insurance

 

 

 

The Nigerian Stock Exchange has lifted the suspension placed on Universal Insurance Plc.

The NSE in its market bulletin said the company had submitted its Audited Financial Statement for the year ended 31 December 2017.

According to the exchange: “In view of the submission of its accounts and pursuant to Rule 3.3 of the Default Filing Rules, which provides that: “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts, provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. “

Universal Insurance Plc, along with eight (8) other listed companies, were suspended for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”).

It provides that: “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, the Exchange will:  “(a) Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; (b) Suspend trading in the Issuer’s securities; and (c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.”

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.

9 stocks to watch this trading week

 

Stocks to watch this week comprises the top gainers and losers in last week’s trading session, as well as companies that released financial results after trading hours on Friday. It also includes companies having corporate actions or controversy around them.

Stocks to watch is not a Buy/Sell/Hold recommendation.

FBN Holdings

FBN Holdings tops our watchlist this week by virtue of its releasing its H1 2018 results after trading hours on Friday. Interest income decreased from N232 billion in 2017 to N225 billion in 2018. Profit before tax, however, rose from N35.6 billion in 2017 to N38.8 billion in 2018. Profit after tax also increased from N29.4 billion in 2017 to N33.5 billion in 2018.

The results show a slight improvement from the previous year which could lead to some investors taking a position.

Seplat Plc

Seplat Plc will be releasing its results for the half year ended June 2018 today. The firm will also be holding an investor conference call after the results are released.

AXA Mansard

Insurance firm, AXA Mansard, is on our watch list this week by virtue of its releasing its H1 2018 results after trading.  Gross Premium written increased from N17.9 billion in 2017 to N23.5 billion in 2018. Profit before tax fell from N2.3 billion in 2017 to N1.8 billion in 2018. Profit after tax also dropped from N2.1 billion in 2017 to N1.5 billion in 2018. Investors could decide to exit the stock in view of the drop in bottom line.

Capital Hotels Plc

Capital Hotels also makes our watchlist by virtue of its results being released after trading hours on Friday. Turnover increased from N2.4 billion in 2017 to N2.8 billion in 2018. Profit before tax also increased from N268 million in 2017 to N321 million in 2018. Profit after tax also increased from N182 million in 2017 to N224 million in 2018.

Investors could decide to key into the stock in view of improved performance.

Cutix Plc

Cutix Plc earns its spot in this week’s watchlist by virtue of being last week’s biggest gainer. The stock’s rally is largely due to its declaration of a one for one bonus and N0.20 dividend. The stock could witness some correction as it gained 46% last week, and is up 117.9% year to date.

RAK Unity Petroleum Co Plc

RAK Unity was the biggest loser last week, hence its having a spot on our watchlist. The stock shed 20%, closing at N0.40. Investors could decide to take a position in the stock, due to the decline.

MRS Oil Plc

MRS Oil Plc will be holding its Annual General Meeting (AGM) on the 1st of August, 2018. AGMs are usually an opportunity for management to brief investors on its plans for the year ahead.

John Holt Plc

John Holt Plc will be holding its Annual General Meeting (AGM) on the 2nd of August, 2018. The company has done poorly in the last decade, and shareholders would be keen on hearing from its management.

Ikeja Hotel Plc

Ikeja Hotel will be holding its Annual General Meeting (AGM) on the 2nd of August, 2018.

These companies will be paying dividends this week

 

 

Corporate actions are decisions taken by a company’s board of directors or management, that could have impact on the firm itself or shareholders.

Examples of corporate actions include the payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.

Here is a review of corporate actions that held last week, and those expected this week.

Portland Paints and Products Nigeria Plc

Portland Paints and Products Nigeria Plc held its Annual General Meeting (AGM) on Friday, the 20th of July, 2018.

NAHCO Aviance Plc

Nigerian Aviation Handling Company Plc (NAHCO Aviance) held its Annual General Meeting (AGM) on Friday, the 20th of July, 2018.

The company announced a new investor, Godsmart Nigeria Limited, which is now the single largest individual shareholder. Godsmart has also brought forward two nominees to the company’s board, while representatives of the exiting shareholder have stepped down. An Executive Director of the firm, Folashade Ode, also resigned.

RAK Unity Petroleum Plc

Rak Unity Petroleum Plc had its qualification date on the 20th of July. Investors holding the company’s shares on that date were eligible for dividends.

ABC Transport Plc

ABC Transport last Friday announced that it had appointed two Executive Directors, Rex Okoro and Ifeanyi Izuka, and a non Executive Director, Bamidele Asijie, who represents Drolemac Farms Limited.

Unilever Plc

Unilever has released its results for the Half Year ending June 2018. Revenue increased from N42 billion in 2017 to N48 billion in 2018. Profit before tax increased from N4.8 billion in 2017 to N7.5 billion in 2018. Profit after tax also rose from N3.5 billion in 2017 to N5.5 billion in 2018.

Medview Airlines Plc

Medview Airlines has taken delivery of a Boeing 777-200ER aircraft for Hajj and international operations. The company also expects its other aircraft back from scheduled maintenance.

Dangote Cement Plc

Dangote Cement released its results for the half year ended June 2018.  Revenue increased from N412 billion in 2017 to N484 billion in 2018. Profit before tax also increased from N155 billion in 2017 to N185 billion in 2018. Profit after tax also grew from N109 billion in 2017 to N113 billion in 2018.

Ecobank Transnational Incorporated (ETI)

Ecobank released its results for the six months ended June 2018.

Gross Earnings dipped slightly from N386 billion in 2017 to N384 billion in 2018. Profit before tax however jumped from N46.2 billion in 2017 to N65 billion in 2018. Profit after tax (from continuing operations) also rose from N37.6 billion in 2017 to N51.3 billion in 2018.

The bank also announced the appointment of Patrick Akinwuntan as its Managing Director Designated for Ecobank Nigeria. He replaces Charles Kie, who will be leaving the Ecobak Group.

Transnational Corporation of Nigeria Plc  

Transcorp Plc released its 2nd quarter results for the period ended June 2018. Revenue increased from N34.1 billion in 2017 to N54 billion in 2018. Profit before tax jumped from N4.5 billion in 2017 to N11.9 billion in 2018. Profit after tax also surged from N4.1 billion in 2017 to N10.8 billion in 2018.

First Aluminium Plc

First Aluminium Plc held a board meeting on Thursday, 19th of July 2018, to discuss urgent issues pertaining to the company.

United Capital Plc

United Capital released its results for the half year ended June 2018. Gross earnings increased from N3.87 billion in 2017 to N3.88 billion in 2018. Profit before tax moved up slightly from N2.37 billion in 2017 to N2.38 billion in 2018. Profit after tax also increased from N1.9 billion in 2017 to N2.0 billion in 2018.

Corporate Actions for this week

Cement Company of Northern Nigeria Plc

Cement Company of Northern Nigeria will be holding its Annual General Meeting on the 26th of July 2018. The proposed dividend, if approved, will be paid the next day. The company has proposed a dividend of N1.25.

RAK Unity Petroleum Plc

Rak Unity Petroleum Plc will be closing its shareholders register from the 23rd to 27th of July 2018.

Conoil Plc

Conoil will be paying a dividend of N2.00 on the 23rd of July 2018.

Stock market index dips further by 0.6% on sustained weaker demand

 

 

Analysts urge investors to adopt cautious trading
The bears continued to dominate transactions on the equity sector of the Nigerian Stock Exchange (NSE), as most blue chip stocks depreciated in price, causing the All-share index to plunge further by 0.6 per cent.

Yesterday, the All- share index shed 215.52 points, representing a decline of 0.58 per cent to close at 36,748.18 points. Also, the market capitalisation declined by N78billion to close at N13.312trillion.

The negative sentiment was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Guaranty Trust Bank, Okomu Oil, FBN Holdings, Oando, and Nigerian Breweries.

Analysts from Cordros Capital, said: “in our view, the continued sell-offs call for cautious trading among investors, amidst absence of a near-term one-off positive catalyst in the short to medium term. However, still-positive macro-economic fundamentals remain supportive of gains on the long term.”

The Chief Research Officer, Investdata Consulting, Ambrose Omodion, said: “Reversal is imminent if more positive Q2 earnings reports hit the market today, considering undervalued state of equities and high yields. Investors should review their position in line with their investment goals and act as events unfold in the global and domestic environment.”

Market breadth closed negative, with 20 gainers versus 23 losers. Continental Reinsurance recorded the highest price gain of 10 per cent, to close at N1.65, while PZ Industries followed with a gain of 9.74 per cent to close at N16.90 per share.

International Breweries appreciated by 9.33 per cent to close at N41, while Japaul Oil and Maritime Services, and McNichols gained 9.09 per cent each to close at 36kobo and 72kobo per share, respectively.

On the other hand, FBN Holdings led the losers’ chart by 9.76 per cent, to close at N9.25, while Oando followed with a loss of 9.52 per cent to close at N4.75, per share.
Wema Bank declined by 8.82 per cent to close at 62kobo, while Caverton Offshore Support Group, and Consolidated Hallmark Insurance shed 7.14 per cent each to close at N1.95, and 26kobo per share, respectively.

Also, total volume traded depreciated by 11.05 per cent to 181.28 million shares worth N1.64billion, traded in 3,854 deals. Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 16.77 million shares valued at N20.64million. Zenith Bank followed with 15.15 million shares worth N361.67million, while Fidelity Bank traded 14.94 million shares valued at N29.79million.Oando traded 11.12 million shares valued at N53.63million, while Access Bank transacted 10.69 million shares worth N106.98million.

Nigerian Stock Exchange suspends trading on eight companies’ shares

 

 

The Nigerian Stock Exchange (NSE) has suspended trading on seven insurance stocks and RT Briscoe for failure to submit 2017 audited accounts and statements.

The Exchange, in a notice to dealing members, listed the insurance firms to include African Alliance Insurance, Cornerstone Insurance, Royal Exchange, STACO Insurance, Standard Alliance Insurance, Universal Insurance Company and Veritas Kapital Assurance.

The development, which is aimed at enforcing rules and ensuring compliance, is also coming after many companies on the bourse have faced similar fate.

The Exchange explained that the suspension of trading in the shares of the affected companies has been effective since July 5, 2018, noting that it would only be lifted upon the submission of the relevant accounts.

It added that the accounts must duly comply with all applicable rules of the Exchange.

The Managing Director, APT Securities and Funds Limited, Malam Garba Kurfi, pointed out that companies with December 31, 2017, financial year end, were expected to submit their accounts in March, noting that four months after the year end, the affected companies had failed to submit their accounts for informed investment decision.

He added that trading and investment decisions on these companies were based on speculation, which is capable of eroding investors’ confidence in the market.

Meanwhile, the NSE All-Share Index and market capitalization depreciated by 1.71 percent to close the week at 37,625.59 and N13.630 trillion at the end of last week’s transactions.

Similarly, all other indices finished lower with the exception of the NSE Insurance Index that appreciated by 0.53 percent.

Furthermore, a turnover of 1.842 billion shares worth N16.594 billion was recorded in 18,941 deals by investors on the floor of the Exchange, lower than 2.004 billion shares valued at N21.582 billion that were exchanged in 18,534 deals during the preceding week.

The financial services industry (measured by volume) led the activity chart with 1.018 billion shares valued at N10.906 billion traded in 10,092 deals; thus contributing 55.28 per cent to the total equity turnover volume and value respectively.

The services industry followed with 313.481 million shares worth N1.861 billion in 782 deals.

The natural resources industry ranked third with a turnover of 304.922 million shares worth N61.366 million in 82 deals.

Trading in the top three equities– United Bank for Africa Plc, Multiverse Mining and Exploration Plc and Nigerian Aviation Handling Company Plc accounted for 912.300 million shares worth N5.308 billion in 1,025 deals, contributing 49.53 percent to the total equity turnover volume.

Also, 27 equities appreciated in price during the week, lower than 32 in the previous week. 45 equities depreciated in price, higher than 39 equities of the previous week, while 97 equities remained unchanged lower than 98 equities recorded in the preceding week.

Still in the week, 25,220 units of Exchange Traded Products (ETPs) valued at N454,438.90 were executed in four deals, compared with a total of 4,211 units valued at N96,115.90 that was transacted last week in 18 deals.