BusinessDay 25 Oct 2017

Wednesday 25 October 2017 C002D5556 BUSINESS DAY 35
Live @ the Stock exchange
Top Gainers/Losers as at Tuesday 24 October 2017
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 0.25
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 October 2017
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
25kobo, 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
253.53million 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, 2017. 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 2017 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 2017/18 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.