Equities in Africa’s largest economy Nigeria extended their declines on Tuesday despite investors jumping on banking stocks.
Activity level was surprisingly high as investors transacted 754,933,491 shares worth N3.638 billion in 4,330 deals during the trading hours of Tuesday, against a total of 291,881,948 shares valued at N2.855 billion that exchanged hands in 4,792 transactions on Monday.
The market value of all listed equities declined by N58 billion from N25.472 trillion it closed on Monday to N25.414 trillion, while the Nigerian Exchange Limited (NGX) All-Share Index depreciated by 0.23% to 47,154.35 index points from 47,262.61 index points.
Breaking down sectorial performance, the NGX banking index dipped by 6 basis points on a 10% decline in the value of Jaiz Bank, 1.48% drop in Access Bank, 4% depreciation in Fidelity Bank and 0.9% decline in Zenith Bank. The few gainers were Union Bank, Unity Bank, Ecobank and Sterling Bank.
The NGX consumer index dipped by 215bps on the decline in Honey Flour, Flour Mill, NB and Nestle. Vita Foam gained 2.82%.
Again, the oil and gas index lost 77bps on depreciation in the value of Conoil, Ardova and Oando. The industrial index also lost 12bps on a decline of 2.08% in WAPCO. A total of 16 stocks closed in the green, against 28 stocks that lost points.
The Exchange year-to-date gain moderated to 10.39%. See the details of top gainers and losers below.
|NIGERINS||N 0.21||N 0.23||0.02||9.52 %|
|CHIPLC||N 0.59||N 0.64||0.05||8.47 %|
|CUTIX||N 2.29||N 2.48||0.19||8.30 %|
|NGXGROUP||N 20.80||N 22.25||1.45||6.97 %|
|UPDC||N 0.90||N 0.95||0.05||5.56 %|
|CONOIL||N 26.50||N 23.85||-2.65||-10.00 %|
|JAIZBANK||N 0.80||N 0.72||-0.08||-10.00 %|
|UPL||N 2.91||N 2.62||-0.29||-9.97 %|
|NEM||N 3.95||N 3.56||-0.39||-9.87 %|
|RTBRISCOE||N 0.62||N 0.56||-0.06||-9.68 %|
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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