Nigerian Stock Investors Gain N390 Billion Last week
The Nigerian Stock Exchange closed strong last week after the Central Bank of Nigeria led monetary policy lowered the interest rate by 100 basis points to 11.5 percent, down from 12.5 percent.
Investors jumped on undervalued stocks in anticipation that cheap loans would stimulate growth in companies of listed stocks and boost economic productivity.
Last week, investors traded total shares of 1.567 billion valued at N20.559 billion in 18,396 transactions, higher than the 1.139 billion shares worth N12.692 billion that were exchanged in 17,109 deals a week before.
In terms of volume traded, the financial services sector led with 1.178 billion shares valued at N9.180 billion exchanged in 9,900 transactions. The sector contributed 75.14 percent and 44.65 percent to the total equity turnover volume and value, respectively.
This was followed by the consumer goods sector with 90.002 million shares worth N1.688 billion in 2,715 deals. The ICT sector came third with a turnover of 84.667 million shares valued at N5.786 billion in 771 deals.
The top three most traded stocks during the week were Sterling Bank, FBN Holdings Plc and Zenith Bank Plc. Together, the three accounted for 612.805 million shares worth N4.311 billion in 3,739 deals and contributed 39.10 percent and 20.97 percent to the total equity turnover volume and value, respectively.
The market capitalisation of listed equities rose by 2.92 percent or gained N390 billion to close the week at N13.755 trillion. While the NSE All-Share Index gained 2.92 percent or 746.77 basis points from 25,572.57 bps to close the week at 26.319.34 bps.
The Exchange quarter-to-date gain improved to 7.52 percent with September gain accounting for half of the total gain at 3.92 percent.
Similarly, the year-to-date decline moderated to -1.95 percent with the overall improvement in the value of the Nigerian Stock Exchange.
Nigerian Stock Exchange Gains Slightly this Week Despite Unrest
Stock Market Gained N19 Billion this Week Despite Unrest
The Nigerian Stock Exchange appreciated by N19 billion this week despite the #EndSARS protest that grounded business activities in major cities.
Investors traded a total turnover of 1.505 billion shares worth N19.668 billion in 20,552 deals during the week, against a total of 1.955 billion shares valued at N22.978 billion that exchanged hands last week in 22,844 deals.
In terms of volume traded, the Financial Services industry led the activity chart with 1.196 billion shares valued at N14.950 billion traded in 11,318 deals; thus contributing 79.47 percent and 76.01 percent to the total equity turnover volume and value respectively.
The Conglomerates industry followed with 97.167 million shares worth N269.045 million in 516 deals.
In third place was the Consumer Goods, with a turnover of 77.588 million shares worth N1.928 billion in 3,461 deals.
Trading in the top three equities was Guaranty Trust Bank Plc, Access Bank Plc and United Bank for Africa Plc. The three accounted for 633.527 million shares worth N10.006 billion in 3,887 deals, together they contributed 42.08 percent and 50.87 percent to the total equity turnover volume and value, respectively.
The Nigerian Stock Exchange Market Capitalisation expanded by 0.13 percent or N19 billion during the week from N14.980 trillion last week to N14.999 trillion this week.
The NSE All-Share Index also gained 0.13 percent or 37.61 basis points from 28,659.45 bps it closed last week to 28,697.06 bps this week.
The index year-to-date return rose to 6.91 percent when the quarter-to-date has risen by 6.95 percent.
Guinness Nigeria Profit After Tax Dipped by N841.65 Million in the Quarter Ended September 2020
Guinness Nigeria Declares N841.65 Million Decline Profit After Tax in the Quarter Ended September 2020
Guinness Nigeria Plc gross profit declined slightly in the first quarter (Q1) ended September 30, 2020 to N7.01 billion, down from N7.94 billion achieved in the same period of 2019.
In the financial statements released through the Nigerian Stock Exchange (NSE), the company’s revenue rose from N26.89 billion posted in the corresponding period of 2019 to N30.02 billion in the first quarter of 2020. While the cost of sales increased from N18.95 billion in Q1 2019 to N23.01 billion in Q1 2020.
The surge in the cost of sales weighed on the company’s operating profit as it declined from N681.57 million in Q1 2019 to N586.3 million in the period under review.
The company’s net finance cost was negative at -N903.79 million due to N1.37 billion that was spent as finance cost during the period while generating finance income of N462.25 million. Still, this was better than the N1.05 billion posted in the corresponding period.
Profit before tax declined by N841.65 million during the period under review, worst than the N370.4 million decline posted in the corresponding period of 2019.
CAP Profit After Tax Declined by 24.4 Percent in First Nine Months of the Year
CAP Posted N928 Million Profit After Tax in First Nine Months of the Year
Chemical and Allied Products Plc (CAP), one of Nigeria’s leading paints manufacturers, reported a 24.4 percent decline in profit after tax in the nine months ended September 30, 2020.
In the financial results signed by Chinwe Okpala, Head, Corporate Affairs and Communications, CAP Plc, the paints manufacturer grew revenue by 3.7 percent year-on-year to N6 billion during the period under review. This represents a 10.8 percent increase when compared to the same period of 2019 when there was no COVID-19 pandemic.
This, the company said was due to 33.7 percent growth recorded in the third quarter when the Federal Government eased lockdown and opened up the economy.
However, the company’s gross profit declined by 2.1 percent year-on-year during the period to N2.7 billion. Largely due to surge in operating cost because of the disruption of global supply chain, rising inflation and double currency devaluation.
Also, profit before tax declined to N1.4 billion, “reflecting a decline of 850 basis points on Profit Before Tax margin due to the decline in operating profit; and a 40.6% decline in net finance income due to lower investment income yields compared to prior year,” the report reads.
Profit after tax declined by 24.4 percent from N1.2 billion achieved in the same period of 2019 to N928 million in the period under review.
Accordingly, earnings per share dipped by 24 percent from 175 kobo posted in corresponding period of 2019 to 133 kobo in the first nine months of 2020.
Speaking on the company’s performance, David Wright, Managing Director, David Wright, said: “In the last quarter of 2019, CAP embarked on a new growth strategy focused on creating value for our shareholders and we are encouraged by the top line growth thus far. CAP’s performance in 2020 has been affected by COVID-19, particularly in April and May as a result of the stringent movement restrictions which constrained production and led to supply chain disruptions.
“Despite the challenging operating environment, we achieved strong revenue and volume growth of 34% and 34.6% respectively in the third quarter of the year. Going forward, we expect to continue to see the positive effects of our growth strategy on our sales and remain focused on managing operating costs to deliver on profit ambitions in the fourth quarter.”
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