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Nairametrics
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The WEEKLY REVIEW: Will Forte Oil repeat the 20% pop?

Nairametrics by Nairametrics
April 29, 2018
in Markets, Spotlight, Stock Market
Forte: In Otedola We Trust
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Weekly Market Summary: 32 tickers gain

  • The NSEASI closed up by 1.05% as the bulls were increasingly charged in the week.
  • FO +20.69%, NESTLE +13.53% and LEARNAFRCA +12.50% witnessed the highest uptick while a number of tier-two banks like UNITYBNK -21.26% and JAIZBANK -17.44% closed down due to sell-offs.
  • The weekly market breadth closed negative at 0.94x with 32 gainers and 34 losers apiece. Market cap closed at NGN14.94trn while Y-t-D return settled at 7.85% in the last trading session.
  • More results trickled in during the week. FBNH released its highly anticipated FY2017 results with gross earnings and PAT advancing by 2% and 179% apiece.
  • The company proposed dividends of NGN0.25.
  • We expect the current trend to be maintained in the coming week as more Q12018 results are released.

Consumer Goods Sector: NESTLE’s RSI closes at 98.15

  • Investors’ appetite for some counters in this space increased during the week. NESTLE +13.53% closed deep in the overbought region at NGN1,615.
  • CADBURY however, shed 4.83%, as the market reacted negatively to the 76% and 80% moderation in PAT and EPS in its recently released Q12018 results. The NSEFBT10 index gained a whooping 6.30% at the end of the week, settling its M-t-D and Y-t-D return higher at 3.53% and 3.75% respectively.

We expect investors to remain bullish on counters in this space in the coming week. Industrial Goods Sector: Nil uptick recorded w/w

  • Huge sell-offs were observed on the counters of the two biggest players in this space. WAPCO -8.60% topped the losers’ chart to close lower at NGN42.00.
  • DANGCEM -1.80% followed suit, shedding NGN4.50. Accordingly, the NSEIND index recorded the greatest decline (4.89%) week on week, with a Y-t-D return of 4.59%.

We expect bargain hunters to take position on WAPCO in the near term.

Get the full report here 

Download (PDF, 308KB)

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Tags: Forte OilNigerian StocksOn the MoneyWeekly Review
Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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Comments 3

  1. Philip Omede says:
    April 30, 2018 at 4:31 am

    Pls I want clarification on the number of shares outstanding for Forte oil. The earnings per share doesn’t seem to correlate with the 1.3 billion units reported by bloomberg, i.e if you divide its 2017 PAT(over 12 billion) by this number of units.

    Reply
    • Nairametrics says:
      April 30, 2018 at 5:34 am

      You have to use profits attributed to the shareholders and not the total profits made by the company. Do not add minority interest.

      Reply
  2. Philip Omede says:
    April 30, 2018 at 6:32 am

    Wow, thanks.

    Reply

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