BusinessDay 01 Apr 2018

Sunday 01 April 2018
C002D5556
37
Equity Market
Unity Bank, Caverton lead as stocks
gain N1.4 trn in first quarter 2018
... Year-to-date dividends rise to N464bn
Stories by TELIAT SULE
The market capitalisation
of equities listed
on the Nigerian Stock
Exchange (NSE) ended
the first quarter of
2018 at N14.99 trillion, representing
10.17 percent increase
over N13.61 trillion which was
its value on the last trading day
of 2017, which implies that the
listed stock gained N1.38 trillion
in the first quarter of this year.
However, this is far lower than
the N2.29 trillion increase in
market capitalisation at the end
of January 2018 and N1.94 trillion
gain at the end of February
2018. As stock market indices
are leading indicators, market
capitalisation inclusive, the reduction
in market capitalisation
of listed equities toward the end
of the first quarter of 2018 aligns
with the general view that current
economic growth is weak.
On why the market momentum
slowed in March compared
with January 2018, this was attributed
to low foreign inflows
and inability of the Monetary
Policy Committee (MPC) of the
Central Bank of Nigeria (CBN)
to meet in the first quarter of
2018.
“Foreign inflows into the market
in December 2017 through
January 2018 were considerable,
and that was why the market
posted stellar performance
in January 2018. By February, the
momentum had slowed down”,
Saheed Bashir, a senior analyst
at Meristem Securities, said.
“There was no major news
that could boost the market in
February and March as most
of the news was about killings,
kidnappings and no MPC meeting.
So, everyone wanted that
boost which did not come from
the government”, he added.
Similarly, the All Share Index
(NSE) of the NSE added
3,261.32 points to close at
the end of the first quarter at
41,504.51 points, representing
8.53 percent appreciation over
38,243.19 points which was its
closing figure on the last trading
day of 2017.
Unity Bank of Nigeria leads the
50 stocks that outperformed the
market as its share price appreciated
by 130.2 percent to end
the first quarter at N1.22 per
share. It was closely followed
by Caverton Offshore which
appreciated by 107 percent to
close last Thursday at N2.67
per share.
Also, Cement Company of
Northern Nigeria (CCNN),
Wema Bank and NPF Microfinance
Bank appreciated by 96.8
percent, 90.4 percent and 69.6
percent for their share prices
to close at N18.70; N0.99 and
N2.12 per share respectively.
Thus, the aforementioned stocks
emerged as the five equities that
outperformed the market at the
end of the first quarter 2018.
NEM Insurance, 65.7 percent;
Eterna, 63.8 percent; Sterling
Bank, 62 percent; FCMB, 60.8
percent and GSK, 57.3 percent
complete the list of the top ten
most performing stocks at the
end of the first quarter.
Five sectoral indices also outperformed
the All Share Index
and they are the NSE Premium
Index, NSE Pension Index, NSE
Industrial Index, NSE Banking
Index and the Corporate Governance
Index.
The NSE Premium Index was
up by 15.1 percent at the end
of the first quarter of 2018. It
added 386.10 points to close
at 2,950.23 points on March
29,2018 as against 2,564.13
points on December 29,2017.
The NSE Industrial Index
closed higher by 10.96 percent,
rising from 1,975.59 points on
the last trading day of last year
to 2,192.12 points at the end of
the first quarter of 2018. Also,
the NSE Banking Index increased
by 9.49 percent, moving from
475.44 points in December 29,
2017 to 520.57 points at the end
of the first quarter of this year.
And the NSE Corporate Governance
Index was higher by 9.34
percent as it closed on March 29,
2018 at 1,659.25 points.
Apart from the above, other
sectoral indices underperformed
the Nigerian equity market. The
NSE Insurance Index ended
the first quarter at 8.4 percent
which is slightly below the ASI
performance. The NSE 30 Index
closed at 7.3 percent just as the
NSE Lotus Islamic Index ended
the quarter at 5.4 percent.
In addition, the NSE Oil and
Gas closed at 4.9 percent while
the NSE Main Board Index and
NSE Consumer Goods Index
closed on the last trading day of
March 2018 at 4.7 percent and
0.2 percent respectively.
At the end of the reference
period, only the NSE ASeM
Index ended the first quarter in
the negative territory. It shed
98.79 points to close on March
29 2018 at 988.53 points down
from 1,087.32 points on December
29, 2017.
Meanwhile, BusinessDay 2018
Dividends Monitor shows that
33 companies have so far declared
different amounts as
dividends per share while MRS
Oil was the only firm to declare
a bonus issue of 1 for every 5
shares held by shareholders as at
June 29,2018. The total dividend
declared as at the end of first
quarter amounted to N463.88
billion.
The breakdown shows that
the banking sub sector, led by
Zenith Bank and GTB, accounted
for N190.63 billion dividends
or 41.1 percent of the total
dividends so far declared while
the manufacturing sector led
by Dangote Cement accounted
for N183.14 billion representing
39.48 percent of the first quarter
2018 dividends. The two sub sectors
accounted for 80.57 percent
of the total dividends declared
year-to-date.
Nigerian Breweries, which declared
N24.82 billion dividends
accounted for 5.35 percent,
while the food and beverages
sub sector accounted for N37.1
billion dividends or 8 percent of
the total dividends declared in
first quarter of 2018.
The healthcare sector with
N8.78 billion dividends accounted
for 1.94 percent of the dividends
so far declared just as the
oil and gas sub sector with N8.16
billion dividends accounted for
1.76 percent of the first quarter
total dividends declared on the
Nigerian Stock Exchange.
However, when compared
with the performance of the
equity market in the first quarter
of 2017, returns at the end of the
first quarter of 2018 are far better.
At the end of the first quarter
of 2017, the market capitalisation
of listed equities had lost
N417.97 billion to close lower
at N8.83 trillion as against N9.25
trillion on December 30, 2016.
The ASI also shed 1,358.28
points to close at 25,516.34
points on March 31, 2017 compared
with 26,874.64 points on
December 30, 2016, translating
to -5.05 percent. The NSE
Premium Index closed at -3.62
percent; NSE Main Board, -4.95
percent; NSE ASeM Index, 0.44
percent; NSE 30 Index -4.93 percent;
NSE Banking Index, -0.03
percent and the NSE Insurance
Index, -1.96 percent.
Others are the NSE Consumer
Goods Index, -11.91 percent;
NSE Oil/Gas Index, -6.48 percent;
NSE Lotus Islamic Index,
-7.29 percent; NSE Industrial
Index, 0.07 percent and the NSE
Pension Index -1.47 percent.