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Monday, October 19, 2015

Investors’ wealth down N136bn, Transcorp Hotel, Access Bank lead losers

Investors on the Nigerian Stock Exchange lost as much as N136 billion of their investment as bears dominated activity for most part of the week. At the end of transactions, the twin market indicators – the market capitalisation and All Share Index (ASI) slipped by 1.3 per cent apiece. Specifically, the market capitalisation of all listed entities dipped by N136 billion to N10.253 trillion from N10.389 trillion, while the ASI dropped by 396.95 basis points to 29,834.21 points from 30,231.16 points.

 Gov Central Bank of Nigeria, Central Bank of Nigeria
This was basically impacted by losses sustained by Transcorp Hotels Plc, Access Bank Plc, Learn Africa Plc, Unity Bank Plc and Honeywell Flour Mills Plc. Transcorp Hotels, which released its third quarter financial statement for September 30, 2015 with very poor outing, depreciated by 9.58 per cent or N0.68, closing at N6.42 from N7.10.

The company’s result released last week showed 8.7 per cent dip in revenue to N10.46 billion as against N11.44 billion recorded a year earlier. Its profit after tax at N2.35 billion was 14.9 per cent decrease compare to N2.76 billion recorded in Q3, 2014.
 Access Bank followed on the decliners chart, dropping by 9.23 per cent or N0.48 to close at N4.72 from N5.20; Learn Africa fell by 8.70 per cent or N0.08 to close at N0.84 from N0.92; Unity Bank lost N0.12 or 7.41 per cent decrease to close at N1.50 from N1.62, while Honeywell Flour Mill deprecated by 7.27 per cent or N0.20 to close at N2.55 from N2.75 per share.
However, following a positive close at the end of trading session on Friday, where the market capitalisation and the All Share index went up marginally by 0.5 per cent, analysts at Afrinvest have projected a positive reversal in activity in the wee. They attributed the positive run on Friday to release of quarter 2015 financial statements by quoted companies, insisting that the trend would continue into the new week.
“We believe the recent performance on the bourse is closely linked to the release of Q3:2015 results, hence, we expect market to remain marginally positive in subsequent session,” Afrinvest said in its weekly market update. Further analysis showed that activity was poor across the market as all the indices closed in the red, with exception of ASeM Board that stagnated at 1,205.90 points, due to apathy towards stocks quoted on that segment of the market.

The newly introduced Premium Board made up of Dangote Cement, FBN Holdings Plc and Zenith Bank went down to 1,578.92 points from 1,617.73 points at the beginning of the week. The Main Board index slipped to 1,427.36 points compared to 1,437.98 points recorded at the beginning of the week. Similarly, all other Indices finished lower during the week with exception of NSE Banking, NSE Insurance and NSE Oil/Gas that chalked up by 0.67 per cent, 2.81 per cent and 3.75 per cent respectively.
At the end of trading in the week, investors exchanged 949.675 million shares worth N10.280 billion in 14,833 deals in contrast to a total of 1.390 billion shares valued at N12.170 billion exchanged in 14,821 deals.

The Financial Services Industry (measured by volume) led the activity chart with 577.298 million shares valued at N4.874 billion traded in 8,006 deals; thus contributing 60.79 per cent and 47.41 per cent to the total equity turnover volume and value respectively. The oil and gas industry followed with a turnover of 228.997 million shares worth N1.639 billion in 1,798 deals, while the third place was occupied by the conglomerates industry with 50.980 million shares worth N275.452 million in 794 deals.

 By Nkiruka Nnorom

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