Wednesday <strong>25</strong> <strong>Oct</strong>ober <strong>2017</strong> 34 BUSINESS DAY
Wednesday <strong>25</strong> <strong>Oct</strong>ober <strong>2017</strong> C002D5556 BUSINESS DAY 35 Live @ the Stock exchange Top Gainers/Losers as at Tuesday 24 <strong>Oct</strong>ober <strong>2017</strong> GAINERS Company Opening Closing Change NB 157 161 4 NASCON 13 14.33 1.33 UACN 16.89 17.51 0.62 DANGSUGAR 14 14.39 0.39 DANGFLOUR 6.9 7.15 0.<strong>25</strong> LOSERS Company Opening Closing Change DANGCEM 219.99 219 -0.99 CADBURY 10.5 10 -0.5 CILEASING 1.8 1.71 -0.09 HONYFLOUR 1.94 1.85 -0.09 TRANSCORP 1.43 1.36 -0.07 Market Statistics as at Tuesday 24 <strong>Oct</strong>ober <strong>2017</strong> ASI (Points) 36,531.62 DEALS (Numbers) 3,657.00 VOLUME (Numbers) 199,855,479.00 VALUE (N billion) 1.810 MARKET CAP (N Trn 12.574 Nigerian Breweries, 21 others push stock market value higher by N41bn Stories by Iheanyi Nwachukwu Investors increased buy decisions in favour of Nigerian Breweries Plc, NASCON, UAC of Nigeria Plc, Dangote Sugar Refineries Plc, Dangote Flour Mills Plc and 16 other stocks helped enhance the total value of Nigeria’s listed equities by about N41billion on Tuesday. At the close of trading on the bourse, the Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.33percent, while the Year-to-Date (ytd) return stood at 35.93percent. Twenty-two (22) stocks gained against 14 losers. The All Share Index closed at 36,531.62 points against the preceding day close of 36,411.73 points while Market Capitalisation closed at N12.575 trillion against preceding day close of N12.534 trillion. Nigerian Breweries Plc recorded the highest price gain by N4, from N157 to N161. NASCON Plc rose from N13 to N14.33, an increase of N1.33. UACN Plc gained 62kobo, from N16.89 to N17.51. Dangote Sugar Plc gained 39kobo, from N14 to N14.39; while Dangote Flour Mills Plc gained <strong>25</strong>kobo, from N6.9 to N7.15. Meanwhile, Dangote Cement Plc recorded the highest price loss of 99kobo, from N219.99 to N219; Cadbury Nigeria Plc followed after dipping by 50kobo from N10.5 to N10; C&I Leasing Plc lost 9kobo, from N1.8 to N1.71; Honeywell Flourmills Plc also lost 9kobo, from N1.94 to N1.85; while Transnational Corporation of Nigeria Plc declined by 7kobo, from N1.43 to N1.36. The volume of stocks traded decreased by 21.17percent, from <strong>25</strong>3.53million to 199.85million, while the total value of stocks traded decreased by 32.93percent, from N2.699 billion to N1.811 billion in 3,657 deals. The Financial Services sector led Tuesday activity chart with 160.12million shares exchanged for N1.39billion; followed by Conglomerates with 13.24million shares traded for N71 million. Fidelity Bank grows nine months profit by 65.1% Fidelity Bank Plc posted impressive financial performance for the nine months period ended September 30, <strong>2017</strong>. Details of the tier-11 lender’s nine months financial results at the Nigerian Stock Exchange (NSE) showed a remarkable growth in key revenue lines and improved efficiency and regulatory ratios. Gross earnings grew by 17.9 percent to N130.1 billion, from N110.3 billion reported in the same period in 2016 whilst profit before tax soared by 65.1 percent from Nnamdi Okonkwo, CEO, Fidelity Bank Plc N9.8bn to N16.2 billion. “We are delighted with our 9 months financial performance which showed strong growth in key revenue lines and a corresponding decline in our operating expenses, despite the high inflationary environment”, said Nnamdi Okonkwo, CEO, Fidelity Bank Plc. He attributed the consistent delivery of strong financial results to the disciplined execution of the Bank’s medium term strategy which centred on optimal balance sheet management, strategic cost reduction and increased play in the digital and retail banking space. “The implementation of the initiatives from our Business Process Review Project continued to impact positively on our operational efficiency as total operating expenses declined by 2.6percent to N47.5 billion, leading to our cost-income ratio dropping to 66.8percent from 77.3percent in 2016 FYE. The combination of the strong net revenue growth of N5.1 billion (8.8percent growth) and the decline in total expenses by N1.3 billion (2.6percent) translated to a N6.4 billion (65.1percent) increase in Profit before Tax (PBT) to N16.2 billion. The 9M <strong>2017</strong> PBT of N16.2 billion is higher than the annual profit numbers in any of the last 4 financial years (2013 to 2016)” he further explained. Last week the bank successfully issued a $400 million Eurobond, which was priced at 10.50percent coupon. The transaction regarded as the largest combined new issue and liability management offering by a Nigerian issuer is reopening the international bond markets for Nigerian Tier II banks. S/African markets weak ahead of budget statement South Africa’s stocks, rand and bonds were weaker on Tuesday, as investors refrained from making any large moves ahead of Finance Minister Malusi Gigaba’s budget speech on Wednesday. At 1500 GMT, the rand traded at 13.7575 versus the dollar, 0.46 percent softer from its New York close overnight. Gigaba will deliver his first medium-term budget policy statement in parliament on Wednesday. A Reuters poll found poor tax receipts could push the <strong>2017</strong>/18 bud- get deficit forecast to 3.9 percent of GDP from an estimate of 3.1 percent in February. “The former minister of finance, Pravin Gordhan delivered a prudent and highly redistributive fiscal budget in difficult economic circumstances,” said Economists at NKC African Economics in a note. “However, it remains to be seen if his successor Malusi Gigaba will stick to this path as there are concerns that his enthusiasm for increased black economic empowerment and nuclear energy could see a widening of the country’s budget deficit.” Radical economic transformation, a vague African National Congress (ANC) plan to tackle racial inequality, has emerged as the key rallying point for the party ahead of a conference in December to replace President Jacob Zuma as head of the ANC. On the equities market, the Johannesburg all-share index fell 0.16 percent to 57,904 points, while the top-40 index closed 0.14 percent lower to 51,597 points. Gold stocks and platinum producers weakened 0.96 percent and 0.66 percent respectively due to lower prices as investors nervously awaited news on the next head of the U.S. central bank. Kumba Iron Ore, a member of the Anglo American plc group, closed 2.84 percent lower to 266.57 rand after reporting a 2 percent decrease in Q3 output. Government bonds were also weak, an the yield for the benchmark instrument due in 2026 up 0.5 basis points to 8.865 percent.