BusinessDay 17 Aug 2017

Thursday 17 August 2017
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 August 2017
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, 2017 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 17 August 2017
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.