Daily Independent (Lagos)
Kingsley Ighomwenghian
1 December 2008
After a week of daily successive loses, the basic measurement indicators of the Nigerian Stock Exchange (NSE) caved in under pressure last week, just as the All-Share-Index hit a new 52-week low, the second time in the month of November.
The index lost 1,634.49 basis points or 4.71 per cent at 33,025.75 points, bringing year to date slide in the nation's equity market to 43.05 per cent, while equities' capitalisation lost all of N345.358 billion to close at N7.305 trillion.
The slide in capitalisation was despite the admission onto the NSE Daily Official List, 4.893 billion ordinary shares of Mass Telecommunications Innovation Nigeria (MTI) by introduction at N4.00.
The euphoria of the new listing on the information, communications and telecommunication sub-sector, which brings the number of quoted firms to 213, was however dampened by the 81 stocks that suffered varying degree of loses.
The petroleum products marketing sub-sector held on to the laggards' side of the price movement table, with Oando taking over the price position from embattled competitor- Chevron Oil Nigeria, which seemed to be on some form of recess.
Oando shed N17.96 to attain yet another 52-week low of N78.99, losing a little less than N200 from the all-time high of N282.77; ahead of Total Nigeria's N15.87 slide, an amount, which includes the adjustment of 380 kobo interim dividend recommended by the board, to close at N225.69. Flour Mills of Nigeria followed, losing 420 kobo, in what may seem market displeasure with its un-audited half year result released during the week showing that turnover growth was significantly more than that of profit, indicating the need for management to pay more attention to drain pipes in its finances.
The result for the period ended September 30, 2008 showed sales income growing by about N30.914 billion or 61.88 per cent from N49.951 billion in the corresponding period of last year, to N80.865 billion. PBT was however weak at N3.551 billion, growing by N522 million or 17.23 per cent from N3.029 billion, at a time when net profit improved by about N366 million or 17.2.6 per cent from N2.12 billion to N2.486 billion.
The net profit translates, therefore, to per share earnings of about N1.45, as against the previous N1.24 per share.
The decliners also included conglomerate- PZ Cussons Nigeria with a total loss of about 385 kobo; building materials giant- Benue Cement Company dropped 370 kobo; Zenith Bank, 327 kobo; Ashaka Cement, another building materials making giant dropped 274 kobo; Afibank Nigeria, 271 kobo; and Northern Nigerian Flour Mills, which completed the top-10 laggards' side with a 259 kobo slide.
Construction giant- Costain (WA) made it once more to the top 10 gainers' side, albeit weakly, but this time it occupied the price slot after chalking 168 kobo; just as building materials packager and marketer- Lafarge Cement WAPCO grabbed 86 kobo. Finbank showed up, after a long absence, grabbing 83 kobo; just like drugs and healthcare products maker- Glaxosmithkline Consumer; United Bank for Africa also closed 76 kobo healthier, in what may also be an indication that the market appreciated its audited result for the year ended September 30, 2008, following which the directors are offering a twin benefit.
The directors' have recommended the distribution of one new bonus share for every four held, in addition to a final dividend of 75 kobo per share, for shareholders on the register of members between December 16 and 18, while dividend warrants will be distributed on January 8, 2009.
The board of the bank had on May 16, released the audited half year ended March 31, 2008, the board had also recommended a bonus of one new share for every two held and interim dividend of 25 kobo for shareholders whose names appear in the register between June 2 and 4, 2008.
The result showed that gross earnings income rose by about N60.124 billion or 54.92 per cent to N169.581 billion, from previous year's N109.457 billion.
Profit before tax stood at N56.815 billion, representing a rise of about N25.663 billion or 82.37 per cent, when compared with the preceding year's N31.152 billion.
After taking into account the negative extra-ordinary item of about N8.786 billion, up from N5.788 billion, PBT and after extra-ordinary item was N48.029 billion, growing by about N22.665 billion or 89.35 per cent to the corresponding level of N25.364 billion.
Profit attributable to shareholders for the period also showed a growth of about N19.384 billion or 90.40 per cent over the N21.441 billion to N40.825 billion.
The week's top gainers' side also had Oceanic Bank International, which chalked 6 kobo; Stanbic IBTC Bank grabbed 55 kobo; May & Baker, 45 kobo; Guinness Nigeria, which last week held its annual general meeting in Benin City, Edo State at the weekend closed seven kobo better; leaving Guaranty Trust Bank at the bottom of the table.
The week's transaction volume of 1.772 billion shares valued at N13.562 billion in 44,762 deals, was about 0.64 billion units or 26.55 per cent low than previous week's 2.41 billion shares exchanged for about N21 billion in 51,198 deals.
The banking sub-sector followed with 1.122 billion units worth N10.465 billion in 27,393 deals, boosted by the 192.09 million shares of Spring Bank traded for N1.07 billion in 463 deals.
In 945 deals, stockbrokers crossed 149.378 million shares of First City Monument Bank worth N856.94 million; Diamond Bank was next with 127.44 million shares worth N1.014 billion in 640 deals; investors staked N874.0 million in exchanged for 112.84 million units of Access Bank in 1,647 deals; while 91.55 million units of UBA changed hands for N1.515 billion.
In the insurance sub-sector where 346.98 million units were traded for N545.83 million units, Investment & Allied Assurance was the most sought after with 133.36 million worth N66.68 million in 321 deals.
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