Connect with us

Markets

Impressive Earning Reports Drive Equities to Positive Close

Published

on

Egypt Stocks
  • Impressive Earning Reports Drive Equities to Positive Close

The equities market recorded yet another positive close for second week in a row as investors continue to react favourably to impressive corporate earnings by some of the companies that released their results last week.

Although the impacts of macro-economic challenges varied across sectors, corporates exposed to the downside risk of macroeconomic headwinds were able to navigate the negatives in the operating environment by leveraging on scale, non-core earnings growth strategy, operating cost optimization, local input sourcing and other accounting ingenuity (usage of deferred tax assets) in order to stay profitable.

Specially, Nascon & Allied Industries Plc recorded year-on-year growth of 13.06 per cent, 16.53 per cent and 14.70 per cent in revenue to N18.29 billion, Profit-Before-Tax to N3.52 billion and Profit-After-Tax to N2.42 billion respectively. Also, the company proposed a dividend of N0.70 per share.

In the banking sector, Wema Bank recorded a positive full year result with the bank’s audited result showing growth in gross earnings by 18.48 per cent to N54.25 billion from N45.79 billion in 2015, while, PBT grew by 9.7 per cent to N3.28 billion from N2.99 billion in 2015.

The Okomu Oil Palm Plc recorded a 50.28 per cent increase in revenue to N14.364 billion and a 80.13 per cent increase in PAT to N4.91 billion, among other companies that released their results during the week. Consequently, the equities market by market capitalisation rose by N9 billion to N9.91 trillion, from N8.83 trillion penultimate week, representing 0.9 per cent increase. Similarly, the All Share Index, ASI, rose by 0.9 per cent from 25,516.34 points to settle at 25,746.52 points.

Sectoral Performance

Performance across the sectors was bullish, with exception of the banking sector that fell by 0.20 per cent. The insurance, consumer goods, oil and gas and the industrial sectors appreciated by 1.97 per cent, 0.80 per cent, 4.27 per cent and 5.15 per cent to close at 126.26 points, 632.83 points, 304.90 points and 1,678.80 points respectively.

Access, Unilever, Okomu Oil get buy rating

Meanwhile, analysts at Cowry Asset Management Limited have assigned buy rating to Access Bank Plc, Unilever Nigeria Plc, Okonu Oil Palm Plc and United Bank for Africa, UBA Plc with full year price target of N12.54, N85.66, N85.99 and N12.38 in that order. Others are Total Oil Nigeria Plc, Chemical and Allied Products Plc and Presco Plc with price target of N394.00, N43.00 and N58.40 respectively.

Expectation for the week

Analysts are of the opinion that the profit taking and bargain hunting would dominate activity in the market this week. They opined that investors are expected to maintain positive stance in the agriculture consumer goods and banking and sectors with more positive reactions to Okomu Oil and Gl;axoSmithKline results. They, however, stated that a reversal of the positive sentiment is expected in the health and insurance and oil and gas sectors within this week.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

Published

on

Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

Continue Reading

Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

Published

on

Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending