Thursday <strong>17</strong> <strong>Aug</strong>ust 20<strong>17</strong> C002D5556 BUSINESS DAY 31
Thursday <strong>17</strong> <strong>Aug</strong>ust 20<strong>17</strong> 32 BUSINESS DAY Live @ the Stock exchange Year-to-date return hits new low as investors lose over N700bn in 3 days Iheanyi Nwachukwu, Hezron Atunde and Bunmi Banjo The Year-to-Date (YtD) return from the Nigerian stock market has nosedived further to a new level of 34.34percent following a record N723billion which the market lost in the past three day. Stock investors began last week to take profit from recent gains after the market reached record high and some stocks entered overbought regions. The market cap of listed equities dropped from week open level of N13.166trillion to N12.443trillion yesterday. Trading closed Wednesday on the Nigerian stock market with yet another decline in the market benchmark indicator- All Share Index (ASI). The ASI dipped by 2.68percent, that represents 994.22 points, to close at 36,102.38 points against 337,096.60 points on Tuesday as the market responds to profit taking. Sewa Wusu, Head, Research & Investment Advisory, SCM Capital said that the market is responding to whims of profit-taking by investors. “Investors have positioned themselves before hand and now despite the recent positive results of the likes of Zenith Bank and GT Bank investors are getting weary and are taking profit. The fatigue is waning the market as it hits the overbought zone, while investors are reaping gains Top Gainers/Losers as at Tuesday 16 <strong>Aug</strong>ust 20<strong>17</strong> GAINERS Company Opening Closing Change NESTLE 1208.1 1220 11.9 NASCON 11.69 12 0.31 UBN 5.79 6 0.21 DANGSUGAR 12.67 12.8 0.13 VITAFOAM 2.71 2.83 0.12 LOSERS from previous appreciation in price”. The analyst noted that the outlook for the market is still positive despite the present negative trend. He said: “the outlook is positive because the exchange rate of the Naira is improving, also the price of crude oil is also looking up and this improvement will culminate in economic recovery which will directly impact the market. In the immediate we will see an intermittent performance in the market until the next major catalysts when the third-quarter (Q3) results are released”. At the close of trading on the floor of the Nigerian Stock Exchange (NSE) Wednesday, the value of listed equities lost about N342.677billion in one day to close at N12.443trillion as against N12.786 trillion recorded Tuesday. At the close of trading, a total of 224.773 million units of listed companies shares valued at N5.090 billion were transacted by investors in 4,822 deals. Yesterday, ten (10) companies gained against 30 losers. Company Opening Closing Change DANGCEM 225 214 -11 TOTAL 236.55 227 -9.55 NB 190 185 -5 GUINNESS 89.89 87.96 -1.93 STANBIC 38.95 37.03 -1.92 FBN Holdings Plc led yesterday activity chart as stock traders exchanged 34.466million shares worth N206.834million. Access Bank Plc followed by less than half trading 27.425million shares worth N276.911million. Guaranty Trust Bank Plc followed with 25.150million shares valued at N970.777 million; while 15.082 million units of Jaiz Bank Plc shares worth N11.992 million were traded. Also traded were 12.655 million units of Zenith Bank Plc shares valued at N284.670 million. Nestle Nigeria Plc, led the gainers’ table adding N11.9 to close at N1220, from N1208 per share recorded Wednesday. Nascon Allied Industries Plc, followed with a gain of N0.31 from day open level of N11.69 to close at N12, while Union Bank Nigeria Plc appreciated by N0.21 to close at N6 per share, up from N5.79. Dangote Sugar Refinery Plc gained N0.13 to close at N12.8 from N12.67. Vitafoam Nigeria Plc increased by N0.12 to close at N2.83 per share, from N2.71. Conversely, Dangote Cement Plc, Total Nigeria Plc, Nigerian Breweries Plc, Guinness Nigeria Plc and Stanbic IBTC Holdings Plc led the losers as Dangote Cement Plc share price declined by N11 to close at N214 per share, down from N225; Total Nigeria lost N9.55, from N236.55 to N227; while Nigerian Breweries declined by N5, from N190 to N185. Guinness declined by N1.93 to close at N87.96 from N89.89; while Stanbic IBTC Holdings depreciated by N1.92 to close at N37.08 per share, down from N38.95. NIBSS confirms over 2 million e-dividend registrants Iheanyi Nwachukwu No fewer than 2.1million investors have registered for e- dividend which enable them collect subsequent dividends electronically as well as allows all accrued dividends to be credited to the investors’ bank accounts. Samuel Goriola Oluyemi, head, Vertical Markets Group, Nigeria Inter-Bank Settlement System (NIBSS) Plc in his presentation during the Capital Market Committee (CMC) meeting disclosed record 2.1 million total e-dividend registrants. While giving further update on e-dividend mandate registration, NIBSS disclosed a record 838,671 unique investors by account, and 433,164 unique investors by BVN. Analysis by gender shows 65percent of investors are male while 35percent of investors are female. Statistics by state of residence show 38 percent of investors are based in Lagos; 8percent based in Abuja; 6percent based in Rivers State; 5percent in Oyo State; 5 percent of investors are based in Ogun State; while 0.4percent of investors are non-residents. Statistics by state of origin indicates that 10percent of investors hail from Anambra State; 9 percent of investors are from Ogun State, 9 percent from Imo State; 6percent of investors hail from Edo State; while 7percent of investors hail from Delta State. Following numerous requests received from the investing public, the Securities and Exchange Commission (SEC) on June 29 extended to December 31, 20<strong>17</strong> the deadline for discontinuance of issuance of physical dividend warrants. ASI (Points) 36,102.38 DEALS (Numbers) 4,822.00 VOLUME (Numbers) 224,773,695.00 VALUE (N billion) 5.090 MARKET CAP (N Trn 12.443 Market analysis Iheanyi Nwachukwu The economy The year 2016 would not be easily forgotten by economic analysts, market watchers and operators in capital market because Nigeria as Africa’s biggest economy and the world’s sixth largest crude oil producer, experienced economic meltdown. Most macro variables worsened significantly, GDP growth slumped to -1.56percent, inflation reached record high of 19percent, the naira exchange rate hit N465/$ and market capitalisation of the Nigerian Stock Exchange (NSE) contracted to N8.6 trillion from N11.658 trillion. The operating environment was indeed very challenging for companies, industries and manufacturers who battled hard with high cost of doing business as well as the poor state of infrastructure in the country. Consequently, companies employed various strategies to survive and deliver impressive returns to shareholders who were daily seeing their investments being eroded as the economy spiralled downwards. Conoil weathered the storms evidenced in its scorecards Conoil Plc is a prominent player in the petroleum downstream subsector of the economy. Amid the serious challenges in 2016, characterized by foreign exchange scarcity, prohibitive cost of funds and the reluctance of commercial banks to give credit lines which hindered marketers’ bid to aggressively import petroleum products, Conoil made good its pledge to weather all storms in order to put smiles on the faces of its teeming shareholders with guaranteed returns on investments. Analysis of the company’s financial results for the year under review, attested to the fact that it adequately prepared for the challenges, focused on Market Statistics as at Tuesday <strong>17</strong> <strong>Aug</strong>ust 20<strong>17</strong> Shareholders’ applause for Conoil achieving impressive growth and was ready to consolidate its leadership position in the downstream petroleum business. Conoil’s result showed growth across all key financial indices. Its profit after tax increased from N2.30 billion in 2015 to N2.84 billion, representing a 23percent rise. Its revenue increased from N82.9 billion to N85.02 billion. Its profit before tax also rose from N3.45 billion to N4.28 billion, showing an increase of 24 percent. The company’s earnings per share increased sharply by 23 percent from 333kobo in 2015 to 409 kobo in 2016. The frontline major oil marketer, in line with its history of progressive dividend policy, rewarded its shareholders with a total dividend payout of N2.15billion. Applause from shareholders It was not surprising that the teeming shareholders of the company, at its 47th Annual General Meeting held in Uyo, the Akwa Ibom State capital recently, poured encomiums on the Board and Management for the impressive growth recorded in all key areas, boosting turnover and maximizing profitability. “Conoil’s performance for the year ended 31 December, 2016 was very encouraging. Against the backdrop of a volatile and tough operating environment, the company still recorded strong margins which in turn impacted shareholders positively,” Olufemi Timothy, President, Renaissance Shareholders’ Association, remarked. He also remarked that shareholders were elated that despite the downturn in the economy; with the attendant sharp increase in operating costs, Conoil still recorded impressive growth in all key areas. “Conoil’s performance for the year ended 31 December, 2016 was very encouraging. Against the backdrop of a volatile and tough operating environment, the company still recorded strong margins which in turn impacted shareholders positively,” Timothy added. Kazeem Olayiwola, Chairman of kaduna-based Alheri Shareholders’ Association, summed up the feelings of the shareholders thus: “Conoil has continually set standards in fuel retailing with world-class facilities and groundbreaking marketing initiatives that endear it to customers and place it far ahead of competition. I am therefore delighted that this has translated to good dividends to shareholders at a time like this, we sure do have a bright future.” Timothy Adesiyan, Grand Patron, Nigerian Shareholders’ Solidarity Association in his reaction, stated that “the management and Board of the company have not only performed excellently well but have also fulfilled their promise of maintaining consistent returns to shareholders”. “Given the tough operating environment in 2016 characterized by tight liquidity, rising cost of funds and the inability of petroleum marketing companies to import fuel in the face of little or no supply from the domestic refineries, Conoil still braved the odds, recorded profits and is able to pay dividend to its shareholders,” said Adesiyan.
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