Archives April 2019

Caverton’s Pre-tax Profit Climbs to N1.22bn in Q1

Caverton Offshore Support Group Plc, (COSG), a provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, has announced its unaudited results for the quarter ended March 31, 2019.

The results showed profit before tax of N1.22 billion and an after-tax profit of N793 million, as its revenue jumped by 83 per cent, a statement from the organisation disclosed.

Specifically, the unaudited first quarter of 2019 results indicated it realised revenue of N8.3 billion in the period under review, higher than the N4.6 billion recorded in March 2018; operating profit (excluding other income) was N1.88 billion, as against the N849.2 million recorded in March 2018; just as its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period climbed to N2.2 billion, higher than the N1.2 billion recorded at the end of the comparable period in 2018.

Profitable ratio also indicated gross margin of 43 per cent (40 per cent March 2018).

In the same vein, Caverton’s direct operating cost also climbed by 74 per cent, supporting its earnings per share which also increased by 170 per cent when compared with same period in 2018.

Commenting on the results, COSG’s Chief Executive Officer, Mr. Bode Makanjuola said, “With the 2019 general elections behind us we look forward to favourable government policies in the oil and gas, aviation and financial sectors that will enable us continue to provide the quality of service our clients have become accustomed to as well as positive returns for our shareholders.”

COSG is one of Nigeria’s leading oil services companies providing solutions for a range of multinational companies across aviation and marine services.

Source:© Copyright Thisday Online 

Oando Sustains Positive Results, Posts N4.6bn Profit in Q1

Oando Plc has raised investors’ hope for better returns as it posted improved results for the first quarter (Q1) ended March 31, 2019.

The company, which recorded higher profit in 2018 sustained the positive performance in Q1, posting a revenue of N168 billion, up by 12 per cent from N150.6 billion posted in the corresponding period of 2018. Profit-after-tax increased by 11 per cent to N4.6 billion compared with N4.2 billion in Q1 2018. The Group also decreased its total borrowings by five per cent to N200.9 billion compared to N210.9 billion in   2018 while its long term borrowing decreased to N75.8 billion compared to N76.8 billion.

Also, the figures reflected an increase in production by 11 per cent at 43,745boe/day compared to 39,556boe/day in the same period of 2018 in Oando’s upstream subsidiary.

Despite its partial divestment from its marketing subsidiary the company continues to increase its market share in the downstream sector through its trading business, Oando Trading which recorded an 11 per cent increase year-on-year, driven by a strong performance in its crude oil trading division and a three per cent increase in turnover to $312 million, from $301 million.

Commenting on the results, the Group Chief Executive of Oando Plc said: “Our results reflect the progress made over the last few quarters and provides an indication of our expectation for the year. Now that our debt profile is down by 78 per cent from $2.5billion as of December 2014 to $ 558 million, and our de – leverage programme is 90 per cent complete with most of our non-core operations divested for good value, we can now focus on steady growth in our upstream entity. ’’

In addition to its positive results Oando has recorded a few milestones in the quarter under review, notably its recent divestment of its 25 per cent residual interest in Axxela Limited to Helios Investment, a leading private equity firm with a focus on investments in Africa, signifying a complete divestment from its midstream business.

According to the company, the move speaks volumes of Oando’s willingness to restructure its business for increased revenue generation by focusing on its dollar earning businesses, Oando Energy Resources (OER), its exploration and production subsidiary, and Oando Trading its trading business.

Tinubu said: “The completion of this divestment signifies another win for the Company. The divestment further reinforces Oando’s ability to create value that can be monetised and the company’s status as the indigenous partner of choice for international companies looking to invest in Nigeria. This transaction favourably positions us to significantly reduce our debt profile and remain focused on growth through our dollar denominated businesses.”

Source:© Copyright Thisday Online 

Fidelity Bank Shareholders Approve N3.2bn Dividend Pay-out

Shareholders of Fidelity Bank Plc have approved the payment of a total dividend of N3.19 billion declared by the board of directors for the financial year ended December 31, 2018.

The dividend, which translates to 11 kobo per shares was approved by shareholders at the bank’s 31st annual general meeting (AGM) held in Lagos at the weekend.

Speaking at the meeting, National Chairman, New Dimension Shareholders Association, Mr. Patrick Ajudua, commended the board and management for maintaining a good dividend policy. He also advised the board to adopt strategies that would lead to the sustenance of the growth and profitability of the bank.

Also speaking, President of the Nigerian Shareholders’ Solidarity Association, Chief Timothy Adesiyan, said the bank had maintained steady growth in spite of challenging environment.

He commended the bank’s effort in ensuring aggressive loans recovery which impacted positively on its non-performing loan.

“We have a solid bank handled by professionals and our bank is in good hands,” Adesiyan said.

Addressing the shareholders, the Managing Director/Chief Executive Officer of Fidelity Bank Plc, Mr. Nnamdi Okonkwo, assured them of consistent and enhanced dividend in future.

Okonkwo said the bank had paid consistent dividend in the last 12 years, noting that the trend would be maintained.

According to him, investment in the bank is the for future, stressing that, the current dividend policy was to prepare for rainy days.

“We want the bank to be here tomorrow as going concern and we need capital to continue to be strong,” Okonkwo said.

He stated that that bank would continue to invest heavily in technology in order to enhance activities through digital channels.

He added that the bank would continue to grow savings deposit, disclosing that savings deposits doubled in the last five years.

Speaking on the 2018 financial performance, he said: “Our 2018 audited financial statement shows a strong double-digit growth in earning assets, customer deposits and revenues.”

He explained that the bank was able to sustain cost discipline with growth in total operating expenses remaining below average headline inflation in 2018.

Also speaking, the bank’s Chairman, Mr. Ernest Ebi, assured the shareholders that the board and management’s focus was    to build a very strong bank that they would proud of.

Ebi, said the bank would remain committed to corporate governance, risk management and strong capital in line with its five-year strategic plan aimed at delivering returns to all stakeholders.

Source:© Copyright Thisday Online

Shareholders Restate Support for Sterling Bank Directors

Shareholders of Sterling Bank Plc Thursday restated their support for the board and management of the bank based on the improved performance recorded in the 2018 financial year.

Speaking on the performance of the bank at the 57th annual general meeting (AGM) in Lagos, President of the Nigerian Shareholders’ Solidarity Association (NSSA), Chief Timothy Adesiyan said the performance of the bank was highly commendable in view of the significant improvement in most of the indices.

According to him, although the bank is not paying any dividend to shareholders for the year, they are happy with the capital appreciation of the share price and the future bountiful dividends that await they.

Also commenting, National Coordinator Shareholders United Front (SUF), Mr. Gbenga Idowu, said the results reflected a very good start by Mr. Abubakar Suleiman as CEO of the bank, who took over from Mr. Yemi Adeola a year ago..

In his address, Chairman of the board of directors of the bank, Mr. Asue Ighodalo said:“Our financial results in 2018 reflect an even stronger business performance despite the impact of an ailing operating environment.”

He explained that the bank sustained earnings growth momentum in 2018 as gross earnings grew by 14 per cent to N152.2 billion from N133.5 billion recorded in 2017.

According to him, despite the fact that operating expenses increased by 26.4 to N66.9 billion due to investment in human capital and technology, the bank grew profit before tax by 17.1 per cent to N9.5 billion and profit after tax by 14.9 per cent to N9.2 billion.

Ighodalo said Sterling Bank ended 2018 with an improved balance sheet position as total assets grew steadily by about 2.9 percent to N1.1 trillion.

“We continued to sustain operational efficiencies and our focus in growing the bank’s retail franchise. This resulted in an improved deposit base and moderate growth in our loan book, specifically riding on the 108.3 percent growth in retail and consumer loans delivered mainly by SPECTA – Nigeria’s fastest digital lending platform,” he said.

The chairman said the bank was able to maintain the cost of funds at 7.4 per cent amidst high-interest environment which persisted for a significant part of the year.

Looking ahead, Ighodalo said the bank expects the first half of the year to be dominated largely by election activities at the expense of economic growth, heightened by subdued foreign capital inflows, increased pressure on the Naira and accelerated foreign exchange intervention programme while the second half would witness the likelihood of stronger consumer confidence.

Source:© Copyright Thisday Online

UBA Shareholders Approve N29bn Dividend, Applaud Performance

Shareholders of pan-African Financial United Bank for Africa(UBA) Plc yesterday approved the N29.9 billion paid for the 2018 financial year, while hailing the consistent strong performance of the group.

The shareholders, who gave the approval at the 57th annual general meeting (AGM) in Lagos, commended the staff, management and the board on impressive performance of the financial institution.

For instance, the President, Association for the Advancement of the Rights of Nigerian Shareholders, Dr Faruk Umar, said the current management was fulfilling the vision of the founders and past leaders of UBA in creating a truly pan-African bank.

“I want to specially commend the management of UBA under the leadership of the Group Managing Director/CEO, Kennedy Uzoka, for a selfless commitment and hard-work towards building an enduring institution that we and future generations can be proud of. More so, I am impressed by the tenacity of this management in delivering on the vision of shareholders to create a leading and dominant pan-African financial service institution with global reputation and culture. Whilst it may have taken us some time to appreciate the cutting-edge vision of Chairman, Mr. Tony Elumelu, in expanding our group’s operation to Africa, we are today excited by the performance and contribution of these operations to our Group’s earnings,” he said.

Addressing shareholders, Elumelu, disclosed the upgrade of operations in the United Kingdom and formal opening of the Mali business, adding that the team in both countries were set to change the narrative of banking, and would thus strengthen the earnings growth trajectory of the Group, through their respective positive contribution.

He said: “We are optimistic about the policy environment in most African economies, where we operate, as we expect diligent implementation of fiscal policies to help stimulate inclusive economic growth, ease macro pressures and lower the cost of doing business. I am very optimistic that we will sustain the strong growth trajectory, as we continue to gain market share across Africa, leveraging our core values of Enterprise, Excellence and Execution.”

On his part, Uzoka, promised shareholders that the team remained poised to do more in the coming year.

According to him, UBA Group has one of the highest capital adequacy ratio in the industry, as its BASEL II CAR stands at 24 per cent as at December 31, 2018, thus reinforcing its capacity to support customers at all times and demonstrating the Group’s capacity to grow over the medium term.

“We are on a new cost optimisation journey and we are diligent in executing far-reaching cost-efficient initiatives, which will complement our revenue growth drive in moderating the cost-to-income ratio towards our desired target. Ultimately, we look forward to delivering superior returns to shareholders in the years ahead,” he said.

Source:© Copyright Thisday Online

NSE fines Access Bank, two others N8.12m for disclosure violations

The Nigerian Stock Exchange has fined Access Bank Plc, Diamond Bank Plc and First Aluminium Plc a total of N8.12m for disclosure violations.

The NSE, in its latest X-Compliance report, said the Access Bank and Diamond Bank were fined for failing to disclose the resolutions passed at the meeting of their board of directors.

Access Bank was fined N4.41m, while Diamond Bank Plc was fined 3.23m, according to the report, which brings the total amount to be paid by the resulting bank from the merger to N7.64m.

First Aluminium was fined N476,280 for non-dispatch of the notice of its Annual General Meeting and annual reports to shareholders 21 days before the date of the meeting.

The NSE said every listed company was required to provide the Exchange with timely information to enable it efficiently perform its function of maintaining an orderly market.

It stated that in accordance with the provisions of Appendix III: General undertaking (equities), the rulebook of the Exchange, 2015 (issuers’ rules) and the Exchange’s circular no. NSE/LARD/LRD/CIR3/17/05/12 on publication of announcements or press releases via the issuers’ portal, listed companies were required to obtain prior written approval from the Exchange before publications that affect shareholders’ interest were made in the media or via the issuers’ portal.

The NSE said in addition, companies were also required to disclose material information to the Exchange and publish the information in their annual reports.

The report read in part, “Access Bank, Diamond Bank and First Aluminium breached certain provisions of the listings rules and were sanctioned accordingly.”

So far in the year, Only Access Bank, Diamond Bank and First Aluminium have committed disclosure violations and have been fined accordingly.

Source:© Copyright Punch Online

Dividends Declaration, First Quarter Earnings Lift Equities Market

The stock market pared losses of many weeks as the Nigerian Stock Exchange (NSE) All-Share Index rose by 1.78 per cent to close at 30,086.31 last week, compared with a decline of 0.19 per cent the previous week.

Similarly, market capitalisation appreciated by same margin to close higher at N11.301 trillion. In the same vein, all other indices finished higher with the exception of the NSE Oil/Gas Index that depreciated by 2.12 per cent.

Market analysts said the recovery in the market could partially be attributed to investors’ reaction to the financial results declared by some companies which included dividends recommendation.

FBN Holdings Plc announced a dividend of 26 kobo for the year ended December 31, 2018, while Nigerian Aviation Handling Company Plc recommended a dividend of 25 kobo for the 2018 financial year. AIICO Insurance Plc declared a dividend of three kobo, while Prestige Assurance Plc and Regency Alliance Insurance Plc recommended a dividend of three kobo apiece.

FBN Holdings Plc’s results witnessed an improvement, showing a profit after tax (PAT) of N59.667 billion, which is a jump of  58 per cent compared with N37.708 billion posted in 2017.

A breakdown of the audited results showed that FBN Holdings recorded gross earnings of N583.477 billion, indicating a marginal decline from N595.446 billion recorded in 2017.  Net interest income reduced from N332 billion to N284.168 billion, while impairment charges declined by 43 per cent from N150.424 billion to N86.911 billion.

In terms of first quarter (Q1) results, Access Bank Plc posted PAT of 86 per cent in 2019. Details of the results showed that net interest income rose to N56.838 billion, from N44.653 billion, while net fee and commission income stood at N13.068 billion as against N13.923 billion in 2018. Net impairment charges fell from N4.961 billion to N3.375 billion in 2019. The financial institution also reduced its personal expenses from N12.290 billion to N12.786 billion. PAT grew   by 86 per cent from N22.116 billion in 2018 to N41.147 billion in 2019.

Commenting on the results, Group Managing Director/ Chief Executive Officer of Access Bank Plc, Mr. Herbert Wigwe said: “The group delivered solid earnings underscoring the value potentials of the newly expanded business model. Gross earnings showed a 16 per cent increase to N160.1bn from the prior year, comprising strong earnings on interest income and non-interest income of 69 per cent and 31 per cent respectively, whilst Profit before Tax (PBT) grew  to N45.1 billion.

Similarly, Guaranty Trust Bank Plc’s PAT rose 10.37 per cent from N44.67 billion in 2018 to N49.302 billion in 2019.  Customers’ deposits also rose by 6.0 per cent to N2.41 trillion in March 2019 from N2.274trillion in December 2018, whilst the bank’s loan book grew by 1.6 per cent from N1.262trillion as at December 2018 toN1.282trillion in March 2019. Its balance sheet remained strong with the bank closing the quarter with total assets of N3.556 trillion and shareholders’ funds of N627.2 billion. In terms of assets quality, non-performing loan (NPL) ratio and Cost of Risk closed 7.03 per cent and 0.05 per cent in March 2019 from 7.30 per cent and 0.34 per cent in December 2018 respectively.

According to  the Managing Director/CEO of GTBank Plc, Mr Segun Agbaje, “Going into 2019, we knew that it would be a challenging year, but our strategy and unwavering focus on delivering value for our customers and shareholders continues to underpin our ability to consistently deliver solid results despite changing market variables. We carried on the momentum of the previous year, posting strong growth in earnings, effectively managing costs and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”

On its part, Zenith Bank Plc  announced gross earnings of N158.1 billion in Q1 of 2019, down seven per cent from N169.2 billion in the corresponding period of 2018. However, net interest income rose 23 per cent from N69.997 billion to N86.137 billion in 2019. The bank reduced its operating expenses by four per cent from N61.701 billion to N59.404 billion. PAT rose seven per cent to N50.2 billion, compared with N47.79 billion in 2018.

According to bank, the growth in net interest income and operating income by 23 per cent and one per cent respectively mitigated the decline in gross earnings. It noted that the effective management of cost-to-income ratio, cost of funds and cost of risk offset top-line declines to deliver an enhanced operating income in the period.

“Our risk and asset quality continues to improve as cost of risk dropped significantly by 52 per cent from 0.9 per cent in the prior year to 0.4 per cent for the period. This was achieved as impairment charges declined by 54 per cent(N2.5billion year on year reduction). Our cost of funds also improved, declining by 25 per cent from four per cent  Q1 2018 to  three per cent  Q1 2019. This was supported by a 22 per cent decrease in interest expense of N10billion over the same period, affirming the Group’s robust treasury and liquidity management. Our prudent cost management led to a five per cent decline in our cost-to-income ratio by  five  per cent from 53.3 per cent  in 2018 to 50.9 per cent in the period with an absolute reduction in operating expenses by N2.3 billion year-on-year,” the bank explained.

Market Turnover

Meanwhile, a total turnover of 988.692 million shares worth N11.432. billion in 13,596 deals were traded last week by investors down from 1.770 billion shares valued at N15.264 billion that exchanged hands the previous week in 17,015 deals.   The market opened for four trading days last week as the Federal Government of Nigeria declared Friday 19th April 2019 (Good Friday) and Monday 22nd April 2019 (Easter Monday) Public Holidays to mark the end of the End of the Lenten season and Easter celebrations.

The Financial Services Industry led the activity chart with 766.191 million shares valued at N7.261 billion traded in 7,820 deals, thus contributing 77.50 per cent and 63.51 per cent to the total equity turnover volume and value respectively. The ICT Industry followed with 74.769 million shares worth N24.600 million in 212 deals. The third place was Consumer Goods Industry with a turnover of 48.022 million shares worth N3.095 billion in 2,374 deals.    Trading in the top three equities namely, Union Bank of Nigeria Plc, Access Bank Plc and Guaranty Trust Bank Plc   accounted for 355.043 million shares worth N4.845 billion in 2,133 deals, contributing 35.91 per cent and 42.38 per cent to the total equity turnover volume and value respectively.

There was no Exchange Traded Products (ETPs) traded during the week compared with a total of 13,740 units valued at N215,010 that was transacted the previous week in two deals.  A total of 14,246 units of Federal Government Bonds valued at N14.980 million were traded last week in 17 deals compared with a total of 787,527 units valued at N795 million transacted   the preceding week in 26 deals.

Price Gainers and Losers

The price movement chart showed that 33 equities appreciated in price during the week, lower than 35 in the previous week, 33 equities depreciated in price, higher than the 31 equities of the previous week. Chams Plc led the price gainers with 28.5 per cent, trailed by First Aluminium Nigeria Plc with 28.1 per cent. Dangote Flour Mills Plc with 27.3 per cent, just as Access Bank Plc and AIICO Insurance Plc garnered 15.1 per cent and 10.2 per cent in that order.

Other top price gainers are:  The Initiates Plc (9.5 per cent); Livestock Feeds Plc (9.0 per cent); Cadbury Nigeria Plc (8.9 per cent); Nestle Nigeria Plc (8.5 per cent); and Consolidated Hallmark Insurance Plc (8.3 per cent).

Conversely, Associated Bus Company Plc led the price losers with 17.5 per cent, trailed by Royal Exchange Plc with 12.0 per cent. C & I Leasing Plc shed 9.8 per cent. A.G Leventis Nigeria Plc, shed   9.8 per cent and 9.6 per cent apiece.

UACN Property Development Company Plc, John Holt Plc and Vitafoam Nigeria Plc went down by 9.6 per cent apiece.  Julius Berger Nigeria Plc and Niger Insurance Plc depreciated by 9.0 per cent each.

Source:© Copyright Thisday Online 

GTBank Posts N50 Billion Profit after Tax in Three Months

Guaranty Trust Bank (GTB) Plc has recorded a profit before tax (PBT) of N56.984 billion for the first quarter (Q1) March 31, 2019, showing an increase of 8.3 per cent, compared with the N52.624 billion recorded in the corresponding period of 2018.

Profit after tax (PAT) rose 10.37 per cent N44.67 billion in 2018 to N49.302 billion in 2019. Customers’ deposits also rose by 6.0 per cent to N2.41 trillion in March 2019 from N2.274trillion in December 2018, whilst the bank’s loan book grew by 1.6 per cent from N1.262trillion as at December 2018 toN1.282trillion in March 2019.

The bank’s balance sheet remained strong as it closed the quarter with total assets of N3.556 trillion and shareholders’ funds of N627.2 billion. In terms of assets quality, non-performing loan (NPL) ratio and Cost of Risk closed 7.03 per cent and 0.05 per cent in March 2019 from 7.30 per cent and 0.34 per cent in December 2018 respectively. In addition, coverage for NPL stood at 90.12 per cent Commenting on the results, the Managing Director/CEO of GTBank Plc, Mr Segun Agbaje, said: “Going into 2019, we knew that it would be a challenging year, but our strategy and unwavering focus on delivering value for our customers and shareholders continues to underpin our ability to consistently deliver solid results despite changing market variables. We carried on the momentum of the previous year, posting strong growth in earnings, effectively managing costs and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”

He added that: “Whilst ensuring the long-term growth of our business is the greatest value that we can create for our communities, we are also leveraging our resources, expertise and network to help people thrive. That’s why, from April 28 to May 1, 2019, we are organizing the biggest food and drink festival in Africa to give small businesses in the food industry the platform, network and access to the markets that they need to grow.”

The bank explained that it had continued to be best in class in terms of profitability, efficiency and capital among peers and other financial institutions in Nigeria.

“This is evidenced by its earnings per share of N1.74, Return on Equity (ROAE) of 32.79 per cent, Cost to Income Ratio of 38.64 per cent and Capital Adequacy of 22.25 per cent. These metrics are a testament to the efficient management of the Bank. In recognition of the bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years.

Source:© Copyright Thisday Online

Nigerian Stock Exchange CEO Advises Investors to Embrace FinTech

The Chief Executive Officer (CEO) of Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, has called on domestic investors to embrace financial technology (FinTechs) as capital flow into that space continues to increase.

Onyema, who stated this at a forum on Fintech in Lagos, said as investment into the space continues to gain traction around the globe, the exchange planned to explore new technologies including blockchain and Distributed Ledger Technology (DLT) for capital raise.

According to him, the global picture of capital flow into FinTechs especially in emerging markets is a proof that FinTechs are important economic catalysts in the fourth Industrial Revolution, but regretted that local investors are not taking its advantage to advance their investments.

“According to KPMG’s “2018 Global Analysis of Investment” equity investment into global FinTech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017 and has continued to gain traction. Surprisingly, foreign investors seem to be seeing these gains better than local investors as statistics show that they have dominated capital raise for indigenous start-ups in the last couple of years,” he said.

The NSE CEO said at the exchange, their key strategies is the segmentation of our market with the introduction of a Growth Board to cater to companies with high growth prospects, including FinTechs emerging from venture capital management to a more mature management that would require public investment and corporate consolidation.

“This approach, in our opinion, would assist companies with high growth potential, leverage public finance for growth and expansion. FinTech offers the opportunity to deepen capital market activities and also achieve sustainable economic growth by empowering a larger portion of the populace to access financial services; unlock efficiencies in product and service delivery for financial institutions and increase transparency and resilience of the Nigerian capital market and larger financial ecosystem,” he added.

Meanwhile, trading at the stock market opened the week on negative note as the NSE All-Share Index (ASI) fell by 0.22 per cent to close lower at 29,495.91, while market capitalisation declined to N11.079 trillion.

The negative performance was fueled by losses recorded by Dangote Cement Plc, United Bank for Africa Plc and FBN Holdings Plc. Also, activity level weakened as volume and value traded shed 4.6 per cent and 12.2 per cent to 224.2 million shares and N1.8 billion respectively. The top traded by volume were Sovereign Trust Insurance Plc (45.7 million shares), Chams Plc (36.8 million shares) and Union Bank of Nigeria Plc (26.2 million shares) while GTBank Plc (N503.3 million), Nestle Nigeria Plc (N350.1 million) and UBN (N178.4 million) led top traded by value.

Source:© Copyright Thisday Online

Analysts Optimistic Market Will Recover on Low Valuation

Having declined for five straight weeks, the low valuation of stock prices on the Nigerian Stock Exchange (NSE) will drive recovery going forward, analysts have predicted.

The stock market declined by 0.19 per cent last week following continuing bear sentiments that have depressed prices to record low.

Specifically, the NSE All-Share Index closed lower at 29,560.47, while market capitalisation stood at N11.103 trillion. According to analysts at Meristem Securities Limited, while the downbeat assessment of the country by the International Monetary Fund (IMF) loomed large on market sentiment, the World Bank also cut its growth forecast to seal the fate of the bulls. Although the market showed signs of recovery in the last days of the week, it was not enough to prevent the NSE ASI to close negatively.

But analysts said the decline in prices have made the Nigerian market to continue to trade at relatively cheap valuation, both historically and to its peers.

“Price-to-Earnings ratio (P/E Ratio) for the NSE ASI and MSCI Nigeria index dropped to 7.43x and 5.54x, the lowest levels since 2009 respectively. We expect this to drive the next phase of the market. The near-term downside risks to this outlook however lies in policy uncertainty as investors await clarity on policy and reforms post the swearing-in of the newly elected Government,” they said.

An analysis of the sectoral performance for the week showed that four out of the five tracked, decline. The lone gainer was the NSE Oil & Gas Index, which rose by 0.3 per cent.

On the negative side, the NSE Insurance Index led with a decline of 3.1 per cent, while the NSE Industrial Goods Index and NSE Consumer Goods Index shed 0.5 per cent and 0.4 per cent respectively. The NSE Banking Index fell 0.3 per cent.

According to analysts at Cordros Capital Limited, they reiterated their negative outlook for the equities market in the short-to-medium term, amidst absence of a positive market trigger.

“However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the medium-to-long term,” they stressed.

Apart from Nigeria that closed negatively, three other markets in Africa also declined. Ghana recorded the worst performance for the week with the Ghana’s GSE Composite falling 2.7 per cent. Egypt’s EGX30 shed 0.9 per cent, while Mauritius’ SEMDEX 0.4 per cent.

On the positive side, Kenya’s NSE-20 led gainers, advancing by 2.4 per cent. Morocco’s Casablanca MASI rose by 0.8 per cent.

In Asia and the Middle East, performance was mostly bearish as four of five markets closed in the red. Turkey’s BIST 100 recorded the only gain after advancing by 2.4 per cent. Thailand’s SET Index led losers, after declining by 0.9 per cent, trailed by Qatar’s DSM 20, which went down by 0.7 per cent. UAE’s ADX General Index shed 0.4 per cent, while Saudi Arabia’s Tadawul ASI closed 0.3 per cent.

According to report by Afrinvest (West Africa) Limited, without a clear positive economic development last week, performance across the developed market was mixed. In the United States(US), the S&P 500 and NASDAQ rose 0.5 per cent apiece while the United Kingdom (UK) FTSE All Share index appreciated 0.1 per cent. France’s CAC 40 advanced 0.5 per cent, just as Japan’s Nikkei 225 gained 0.3 per cent.

Conversely, the Hong Kong’s Hang Seng declined 0.1 per cent while Germany’s XETRA DAX declined by 0.05 per cent.

Across BRICS countries, performance was mixed albeit negatively skewed, as three of five markets trended southwards. The Russia RTS recorded the largest gain, rising 2.1 per cent as investors reacted positively to increased crude oil sales following U.S. sanctions on Venezuela and Iran. South Africa’s FTSE/JSE All Share also recorded a gain of 1.1 per cent due to the institution of accommodative monetary policies by the country’s central bank.

On the negative side, Brazil’s Ibovespa led the decliners, shedding 2.6 per cent just as China’s Shanghai Composite and India’s BSE Sens shed 1.8 per cent and 0.2 per cent respectively.

Market Turnover

An analysis of market turnover showed a decline as investors traded 1.770 billion shares worth N15.264 billion in 17,015 deals, down from 3.544 billion shares valued at N20.264 billion that exchanged hands in 19,130 deals the previous week.

But the Financial Services Industry remained the most active, recording 1.257 billion shares valued at N12.127 billion traded in 10,760 deals. The sector thus contributed 71 per cent and 79.45 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 226.767 million shares worth N288.198 million in 864 deals, while the third place was ICT Industry with a turnover of 184.641 million shares worth N76.618 million in 274 deals. Trading in the top three equities which are: Sterling Bank Plc, Transnational Corporation of Nigeria and Guaranty Trust Plc accounted for 648.906 million shares worth N5.831 billion in 2,293 deals, contributing 36.6 per cent and 38.2 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 13,740 units of Exchange Traded Products (ETPs) valued at N215,010 executed in two deals. However, there were no trade recorded for ETPs the previous week.

A total of 787,527 units of Federal Government Bonds valued at N795 million were traded this week in 26 deals compared with a total of 18,042 units valued at N19.685 million transacted last week in 24 deals.

Price Gainers and Losers

The price movement chart displayed 35 equities that appreciated, higher than 14 in the previous week, while 31 equities depreciated in price, lower than 55 equities of the previous week.

Learn Africa Plc led the price gainers with 18.7 per cent, followed by May & Baker Nigeria Plc with 17.3 per cent. Chams Plc appreciated by 16.6 per cent, just as Regency Assurance Plc chalked up 13.6 per cent. Mutual Benefits Assurance Plc, Niger Insurance Plc and Veritas Kapital Assurance Plc garnered 10 per cent each.

Other top price gainers included: Neimeth International Pharmaceuticals Plc (9.8 per cent); Meyer Plc (9.2 per cent) and Transnationwide Express Plc (8.7 per cent).

Conversely, Ikeja Hotel Plc led the price losers with 26.1 per cent, trailed by Associated Bus Company Plc with 16.6 per cent. McNichols Plc shed 14.7 per cent just as Royal Exchange Plc and NEM Insurance Plc declined by 13.7 per cent respectively.

Consolidated Hallmark Insurance Plc went down by 11.1 per cent, while Cutix Plc closed 9.9 per cent lower. PZ Cussons Nigeria Plc shed 9.6 per cent, just as Trippe Gee and Company Plc lost 9.1 per cent.

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