This week was a bearish one on the Nigerian Stock Exchange as the all share index closed at 31,041.42 basis points, down 0.31%. Year to date, the index is down 1.24%.
21 equities appreciated in price during the week, lower than 32 in the previous week. 36 equities depreciated in price, lower than 38 equities of the previous week, while 111 equities remained unchanged, higher than 98 equities recorded in the preceding week.
Eterna Plc was the best performing stock this week. The stock opened at N4.80 and closed at N5.30, up N0.50 or 10.42%. Year to date, the stock is up 12.77%.
Yesterday, the company released its full year audited results for the 2018 financial year. Revenue increased from N171 billion in 2017 to N253 billion in 2018. Profit before tax fell sharply from N2.8 billion in 2017 to N1.9 billion in 2018. Profit after tax also fell from N2 billion in 2017 to N1 billion in 2018.
Eterna Plc also declared a dividend of N0.25.
Red Star Express Plc
Red Star Express Plc opened the week at N5 and closed at N5.50, up N0.50 or 10%. Year to date, the stock is up 30.95%, and is trading at a year high.
Ikeja Hotel Plc
Ikeja Hotel Plc gained 9.94% this week. The stock opened at N1.71 and closed at N1.88, up N0.17 or 9.94%. Year to date, the stock is up 22.88%.
The company released its full year 2018 results during the week. Turnover increased from N12.1 billion in 2017 to N13.2 billion in 2018. Profit before tax jumped from N733 million in 2017 to N1.2 billion in 2018. Profit after tax also rose from N603 million in 2017 to N1.1 billion in 2018.
C & I Leasing Plc
C & I Leasing Plc opened the week at N7.27 and closed at N7.99, up N0.72 or 9.90%. Year to date, the stock is up 348% (due to a share reconstruction).
ABC Transport Plc
ABC Transport Plc gained 8.16% this week. The stock opened at N0.49 and closed at N0.53, up N0.04. Year to date, the stock is up 82.76%.
During the week, the company released its audited 2018 results. Revenue dipped from N7.1 billion in 2017 to N6.8 billion in 2018. Profit before tax fell from N766 million in 2017 to N67.1 million in 2018. The firm recorded a N113 million loss in 2018, as against a N513 million profit recorded in 2017.
Seplat Petroleum Development Company Plc
Seplat Petroleum opened the week at N550 and closed at N590, up N40 or 7.27%. Year to date, the stock is down 7.81%.
Medview Airline Plc
Medview Airline Plc gained 5.88%. The stock opened at N1.70 and closed at N1.80, up N0.10. Year to date, the stock is down 12.20%.
Nestle Nigeria Plc
Nestle Nigeria Plc opened the week at N1,500 and closed at N1,580, up N80. Year to date, the stock is up 6.40%.
Livestock Feeds Plc
Livestock Feeds Plc gained 5% this week. The stock opened at N0.60 and closed at N0.63, up N0.03. Year to date, the stock is up 28.57%.
The company this week released its full year 2018 results. Revenue dropped from N10.1 billion in 2017 to N7.8 billion in 2018. The company swung into a N23.1 million loss before tax, as against a N469 million profit made in 2017. However, loss after tax moderated N725 million in 2017 to N620 million in 2018.
11 Plc rounds up the top 10 gainers for the week. The stock opened at N170 and closed at N178, up N8 or 4.71%. Year to date, the stock is down 4.04%.
Fidelity Bank Plc
Fidelity Bank Plc was the worst performing stock this week, declining by 13.08%. The stock opened at N2.37 and closed at N2.06, down N0.31. Year to date, the stock is up 1.5%
This week, the bank released its audited full year 2018 results. Gross earnings increased from N180 billion in 2017 to N188 billion in 2018. Profit before tax rose from N19.2 billion in 2017 to N25 billion in 2018. Profit after tax rose from N17.7 billion in 2017 to N22 billion in 2018.
A dividend of N0.22 was initially suggested in an earlier version of its financial statements. A notice was then issued, indicating the bank would pay a much smaller sum of N0.11
Dangote Flour Mills Plc
Dangote Flour Mills opened the week at N11.60 and closed at N10.20, down N1.40 or 12.07%. Year to date, the stock is up 48.91%.
Sovereign Trust Insurance Plc
Sovereign Trust Insurance declined by 9.09% this week. The stock opened at N0.22 and closed at N0.20, down N0.02. Year to date, the stock is down 4.76%.
The company released its full year 2018 results, this week. Gross premium written increased from N8.5 billion in 2017 to N10.5 billion in 2018. Profit before tax jumped from N202 million in 2017 to N540 million in 2018. Profit after tax also rose from N157 million in 2017 to N344 million in 2018.
Mutual Benefits Assurance Plc
Mutual Benefits Assurance Plc opened the week at N0.24 and closed at N0.22, down 8.33%. Year to date, the stock is up 4.76%.
Academy Press Plc
Academy Press also declined by 8.33% this week. The stock opened at N0.36 and closed at N0.33, down N0.03. Year to date, the stock is down 34%, and is trading at an all time low.
Presco Plc shed 7.72% this week. The stock opened at N68 and closed at N62.75, down N5.75. Year to date, the stock is down 1.95%.
PZ Cussons Nigeria Plc
PZ Cussons Nigeria Plc opened the week at N10.50 and closed at N9.80, down N0.70 or 6.67%. Year to date, the stock is down 19%.
The company this week released its results for the nine months ended February 2019. Turnover fell from N63.2 billion in 2017 to N55 billion in 2018. Profit before tax fell from N1.9 billion in 2018 to N936 million in 2019. Profit after tax also dropped from N1.3 billion in 2018 to N807 million in 2019.
NPF Microfinance Bank Plc
NPF Microfinance Bank shed 6.29%. The stock opened at N1.59 and closed at N1.49, down N0.10. Year to date, the stock is down 9.70%.
LASACO Assurance Plc
LASACO Assurance opened the week at N0.32 and closed at N0.30, down N0.02 or 6.25%. Year to date, the stock is flat.
Access Bank Plc
Access Bank rounds up the top 10 losers for the week. The stock shed 5.84% this week, opening at N6.85 and closing at N6.45, down N0.40. Year to date, the stock is down 5.15%.
Nigerian stock investors lose N55.17 billion, as Zenith, GTBank and MTN finish lower
Market breadth closed in favor of the bear with 17 tickers closing in the red.
The Nigerian Stock Exchange began the first trading week on a negative note, as the All-share index fell by 0.44%. The downturn was impacted by losses recorded in large capitalized stocks.
The All-Share Index (ASI) dipped by 0.44% to 24,200.60 index points. Accordingly, Month-to-Date and Year-to-Date losses stands at -1.12% and -9.92%, respectively, while market capitalization stood at N12.624 trillion after declining by N55.17 billion.
Market activity level was inverse to the broad index, as total volume and value traded significantly improved by 75.67% and 139.55% to 231.23 million units and 2.154 billion. STERLNBK was the most traded stock by volume at 77.5million units, while MTNN finished the most traded stock by value at N1.124 billion.
Market breadth closed in favor of the bear with 17 tickers closing in the red against 14 gainers.
With the exception of the Industrial and Consumer Goods Indexes which closed 0.26% and 0.08% higher during the day due to price appreciation in NACHO, LIVESTOCK, and BUA CEMENT respectively, all other sectors were negative.
The decline in MOBIL and Eterna Oil pressured the Oil & Gas index down by 1.91%, the Banking index trailed to wane by 1.70% as a result of decline in ZENITHBANK and GTB, while losses in WAPIC, CUSTODIAN and LAW UNION prompted a 0.35% decline in the Insurance Index.
CAVERTON up 7.73% to close at N1.95, CILEASING up 6.33% to close at N4.2, AFRIPRUD up 6.25% to close at N4.25, NASCON up 5.26% to close at N10, BUACEMENT up 0.61% to close at N41.2
MOBIL down 9.97% to close at N173.4, ETERNA down 6.70% to close at N2.09, ZENITHBANK down 2.99% to close at N16.2, GUARANTY down 2.00% to close at N22, MTNN down 0.95% to close at N115.
Nigerian bourse finished on a bearish note, triggered by sell-offs in bluechip stocks. Nairametrics envisage cautious buying, as geopolitical uncertainty heightens.
Unclaimed dividend stands at N158.44 billion, over N100 billion from unclaimed shares
The figure has been on the increase despite the introduction of e-dividend.
The total value of unclaimed dividend in the Nigerian capital market closed 2019 at N158.44 billion and over N100 billion of the amount are from unclaimed shares.
This was disclosed by the Securities and Exchange Commission via a report from the News Agency of Nigeria.
The development revealed that the figure has been on the increase despite the introduction of e-dividend, which was introduced by SEC in 2015. From about N100 billion in 2017, it closed 2018 at over N120 billion.
Dividend is company’s earnings, decided and managed by the company’s board of directors, and paid to a class of its shareholders.
The earnings turned unclaimed when a shareholder fails to claim an already paid dividend after six months.
Breakdown: The components, according to the report, showed that unclaimed dividends with companies (15 months and above) stood at N119.01 billion.
The ones with registrars amounted to N14.64 billion and unclaimed dividend less than 15 months old stood at N24.77 billion.
Why the figure rises: Head, Office of the Chief Economist, SEC, Mr Okey Umeano, explained that value has been on the increase since the market has been witnessing surge in large number of unclaimed shares.
He said, “The main issue why unclaimed dividend is rising is because we have a large number of unclaimed shares.”
According to him, many investors during the banking consolidation bought shares with different names as well as other people’s names which they were yet to rectify.
“As companies declare dividend, those accounts would equally be paid, leading to increase in unclaimed dividend figure.
“The commission introduced a forbearance window for multiple accounts to enable investors that bought shares with different names to regularise their accounts in order to reduce the quantum of unclaimed dividends.
“SEC gave a window for people to come and rectify the multiple subscription thing.
“Many people have still not been able to claim their own because some of them have forgotten the names they used.
“Some have not been able to prove to their stockbrokers that they are the owners of the shares.
“So, we still have a large chunk of those shares, and anytime dividends are paid, those shares are not claimed and those people don’t get their dividends,” Umeano said.
Until the number of unclaimed shares goes down, unclaimed dividend problem will continue.
On the way forward, he assured that the commission would continue to put pressure on all the people involved in order to curb the problem of unclaimed dividends.
Umeano called on investors to go and prove ownership of their shares, noting that SEC was not prosecuting anybody.
“SEC has given them amnesty to go and claim their shares and as people are claiming those shares, unclaimed dividends number will go down,” he added.
U.S Stock futures soar high as investors await earning results
The outlooks are supposed to give investors and stock analysts more insights.
The S&P 500 index futures soared higher on Monday before the official opening of the U.S stock market, as stock traders awaited outlooks for the week from major blue-chip brands. The outlooks are supposed to give investors and stock analysts more insights about America’s economic performance.
Futures on the Dow Jones Industrial Average gained 223 points or 0.8%. The move implied an increase of 244 points at Monday’s open. S&P 500 futures added 0.7%. Nasdaq-100 futures contracts rose 0.9%.
“We think earnings are likely to recover in the second half of the year and excess liquidity will continue to support risk assets,” said Julie Fox at UBS Private Wealth Management told Bloomberg News. “We see further potential in global equities and think there’s some upside in segments of the market that have underperformed during the crisis.
Quick fact; American Stock futures are simply standardized contracts that global traders use in purchasing or selling the U.S stock in a future date. This means that the U.S stock futures give an insight into what global investors see before the market opens, or after it closes
However, Milan Cutkovic, Market Analyst at AxiCorp in a note to Nairametrics explained the growing concerns global stock traders are facing presently. He said;
“There is no need to fear summer doldrums. With a global pandemic, on-going Brexit negotiation, increasing tensions between the United States and China, and the US election campaigns, there is no shortage of topics to keep market participants occupied.”