The Nigerian Exchange Limited (NGX) sustained its downward trend last week as investors continue to sell their holdings and hold off for the remaining days of the year to reassess global uncertainty amid Omicron concerns.
Investors traded a total of 1.278 billion shares worth N17.340 billion in 21,052 deals last week, in contrast to a total of 3.435 billion shares valued at N30.915 billion that exchanged hands in 21,109 transactions in the previous week.
During the week, the Financial Services Industry led the activity chart with 984.543 million shares valued at N10.247 billion traded in 11,029 deals. Therefore, contributing 77.01 percent and 59.09 percent to the total equity turnover volume and value respectively.
Consumer Goods Industry followed with 78.724 million shares worth N2.328 billion in 3,137 deals. In third place was The Conglomerates Industry, with a turnover of 48.730 million shares worth N69.840 million in 647 deals.
FBN Holdings Plc, Guaranty Trust Holding Company Plc and Access Bank Plc were the three most traded equities, accounting for 470.731 million shares worth N6.571 billion in 3,887 deals. The three contributed a combined 36.82 percent and 37.90 percent to the total equity turnover volume and value, respectively.
The market value of all listed equities declined by 2.63 percent or N595 billion from N22.598 trillion recorded in the previous week to N22.003 trillion last week. While the NGX All-Share Index depreciated by 2.63 percent 0r 1,140.38 index points to 42,167.91 index points, down from 43,308.29 index points.
Similarly, all other indices finished lower with the exception of NGX Insurance index which appreciated by 2.97 percent, while the NGX ASeM, NGX Growth and NGX Sovereign Bond Indices closed flat.
Eighteen equities appreciated in price during the week, lower than Twenty-nine equities in the previous week. Forty-nine equities depreciated in price, higher than Thirty-six equities in the previous week, while eighty-nine equities remained unchanged lower than ninety-one equities recorded in the previous week. See the top gainers and losers below.
Stock Market Extends Decline as Selloff Continues Following Interest Rate Hike
investors exchanged 119.8 million shares worth N2.689 billion in 3,552 transactions during the trading hours of Wednesday, against 182.3 million shares worth N4.82 billion that were transacted in 3,470 deals on Tuesday.
The Nigerian Exchange Limited (NGX) sheds another N32 billion on Wednesday after posting a N25 billion decline on Tuesday immediately after the Central Bank of Nigeria-led monetary policy committee hiked interest rate by 100 basis points from 16.5% to 17.5%.
Activity level dipped as investors exchanged 119.8 million shares worth N2.689 billion in 3,552 transactions during the trading hours of Wednesday, against 182.3 million shares worth N4.82 billion that were transacted in 3,470 deals on Tuesday.
Sectorial analysis shows the banking sector lost 34 basis points (bps) on a 2.41% decline in the value of UBA and a 0.55% dip in Accessco. Wema bank and Fidelity bank posted 1.52% and 0.60% gains, respectively.
The consumer goods sector appreciated by 34bps as the value of Unilever Nigeria jumped 7% following healthy financial results that show the company grew profit after tax by 110% to almost N1 billion in 2022. Intbrew recorded 5.38% while Honey Flour and Cadbury lost 5.15% and 2.07%, respectively.
The oil and gas sector closed flat, the same as the industrial sector.
The NGX All-Share Index depreciated by 0.02% from 52,612.55 index points closed on Tuesday to settle at 52,599.65 index points.
The market value of listed equities stood at N28.649 trillion, a N32 billion decline from N28.681 trillion it closed on Tuesday. The year-to-date return moderated to 2.63%. See top gainers and losers below.
Top Fiver Gainers
|RTBRISCOE||N 0.30||N 0.33||0.03||10.00 %|
|TRIPPLEG||N 0.80||N 0.88||0.08||10.00 %|
|CHELLARAM||N 1.50||N 1.65||0.15||10.00 %|
|OKOMUOIL||N 165.00||N 181.10||16.10||9.76 %|
|CAVERTON||N 0.95||N 1.03||0.08||8.42 %|
Top Five Losers
|THOMASWY||N 1.45||N 1.31||-0.14||-9.66 %|
|CORNERST||N 0.58||N 0.54||-0.04||-6.90 %|
|GEREGU||N 142.40||N 134.00||-8.40||-5.90 %|
|HONYFLOUR||N 2.33||N 2.21||-0.12||-5.15 %|
|CWG||N 0.94||N 0.90||-0.04||-4.26 %|
Top Five Trades
Unilever Nigeria Grows Profit by 310% in Q4, 2022 as Cost of Sales Moderated Significantly
Revenue grew by 14.88% to N23.952 billion from N20.850 billion recorded in Q4 2021
Unilever Nigeria, a leading nutrition, hygiene and personal care company, reported stronger-than-expected fourth quarter (Q4) financial results for 2022 as the company made a series of adjustments to key areas.
Revenue grew by 14.88% to N23.952 billion from N20.850 billion recorded in Q4 2021. Cost of sales moderated by 30.51% to N9.652 billion, down from N13.890 billion spent on sales in Q4 2021.
Similarly, gross profit increased by 105.47% from N6.959 billion reported in Q4 2021 to N14.301 billion in the quarter under review.
Impairment loss on trade and intercompany receivables also declined to N3.596 million, a 97.69% decrease when compared to N156.264 million achieved in Q4 2021.
The company disclosed this in its unaudited financial statement released on Tuesday and obtained by Investors King.
Operating profit stood at N8.034 billion in the quarter, up from N2.319 billion posted in the same quarter of 2021.
Profit after tax for the quarter grew by 310% from N1.546 billion to N6.341 billion.
However, a critical analysis of the entire 2022 financial statement shows that despite the strong Q4 result, weak Q1, Q2 and not-so-good Q3 dragged on the company’s overall performance in the year.
Cost of sales rose by 14.12% to N57.238 billion from N50.162 billion in 2021, against the decline recorded in the fourth quarter.
Marketing and administrative expenses grew to N18.282 billion, an increase of 20.90% from N15.121 billion in 2021.
Profit after tax increased by 75.77% to N5.993 billion from N3.409 billion.
MTN to Allot Incentive Shares to Qualified Shareholders
MTN Nigeria has announced the execution of its incentive shares to qualified shareholders following its January 2022 sales.
In January 2022, MTN Nigeria sold 575 million ordinary shares held by MTN International (Mauritius) Limited to Nigerians with one ordinary share for every twenty ordinary shares purchased term. However, due to the surge in demand, the telecommunications company ended up allotting 661.3 million shares to investors.
In a statement signed by Uto Ukpanah, the Company Secretary, MTN Nigeria Communications, the incentive was capped at 250 ordinary shares.
He noted that eligible shareholders must hold a portion or all of the shares allotted to them from the offer as of 31 January, 2023 (the qualification date) subject to holding a minimum of 20 ordinary shares.
According to him, shareholders must have their names appear in the company’s register of members on the qualification date.
“Qualified shareholders will have their incentive shares credited to their CSCS accounts after the qualification date and obtaining the requisite regulatory approvals,” the document sighted on NGX said.
The offer saw 114,938 new CSCS accounts opened for representing new market participants, with roughly 76 per cent of successful applicants via digital platforms being women and 85 per cent below the age of 40.
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