Market Update for the week ended June 16, 2017:

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  • Inspite of the turbulence witnessed at the start of the week, the Nigerian equities market grew for the third straight week in June.
  • The market defied the slow start in the week as it surpassed the previous
  • The market advanced as the All Share Index grew by 1.60 percent while the Market Capitalization grew by 1.63 percent.
  • The market’s main indexes closed mixed as Total deals declined by 4.34 percent, Aggregate Volume Turnover by 11.71 while Aggregate Value Turnover grew by 9.81 percent.
  • Out of the five trading sessions in the week, the bourse grew for four consecutive trading sessions in the week.
  • For the second straight week, the stock of May&Baker Plc continued to enjoy investors’ attention as the stock which opened the week’s trading at N2.84 closed the week’s trading at N4.56 having grown by 60.56 percent.

The stock of Skye Bank Plc which was 53kobo at the start of the week’s trading also gained investors’ attention which made the stock grow by 41.51 percent to close for the week at 75kobo.

Also, the stock of Cement Company of Northern Nigeria also gained 33.69 percent in the week to close at N8.85.

  • NSE’s premium boards stocks closed the week mixed as the stock of Zenithbank Plc grew, that of First Bank of Nigeria Holdings declined while that of Dangote Cement unchanged.
  • Investors’ optimism when measured by market breadth was negative as the number of equities that grew in price was less than the number of equities that declined in price.
  • Of the 174 stocks on the floor of the Nigerian Stock Exchange, 144 were traded, out of which 38 stocks grew in price, 42 declined in price and 64 stocks retained their prices while 30 stocks were untraded in the week.

INDEX MOVEMENT:

The NSE All-Share Index and Market Capitalization appreciated by 1.60% and 1.63% to close the week at 33,810.56 and N11.692 trillion respectively. Similarly, all other Indices finished higher during the week with the exception of the NSE ASeM, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods Indices that depreciated by 0.32%, 4.20%, 0.71%, and 0.28% respectively.

MARKET STATISTICS:

An Aggregate turnover of 2.737 billion shares worth N32.042 billion in 32,217 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 3.100 billion shares valued at N29.180 billion that exchanged hands last week in 33,677deals.

The Financial Services Industry (measured by volume) led the activity chart with 2.189 billion shares valued at N21.792 billion traded in 18,832 deals; thus contributing 79.98% and 68.01% to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 287.945 million shares worth N621.772 million in 2,031deals.

The third place was occupied by Consumer Goods Industry with a turnover of 114.832 million shares worth N5.370 billion in 5,040 deals.

Trading in the Top Three Equities namely – Access Bank Plc, Zenith International Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 918.046 million shares worth N10.324 billion in 5,809 deals, contributing 33.53% and 32.22% to the total equity turnover volume and value respectively.

 

GAINERS AND LOSSES:

Thirty-eight (38) equities appreciated in price during the week, lower than fifty-nine (59) equities of the previous week. Forty-two (42) equities depreciated in price, higher than twenty-one (21) equities of the previous week, while ninety-three (93) equities remained unchanged same as ninety-three (93) equities recorded in the preceding week.

DEALS, VOLUME AND VALUE:

The stock of First Bank of Nigeria Holdings recorded the most deals transacted. The stock of Access Bank recorded the most Volume turnover while that of Guaranty recorded the most Value turnover for the week.

BONDS:

A total of 12,193 units of Federal Government Bonds valued at N12.440 million were traded this week in 14 deals, compared with a total of 10,860 units valued at N10.196 million transacted last week in 10 deals.

ETPs:

Also traded during the week were a total of 16,300 units of Exchange Traded Products (ETPs) valued at N973,376.00 executed in 3 deals compared with a total of 40.317 million units valued at N178.841 million transacted last week in 12 deals.

PRICE ADJUSTMENT:

In the price adjustment box, are the securities adjusted in the week for dividend as recommended by their board of directors.

DISCLOSURES WITHIN THE WEEK

  • Lafarge Africa Plc announced the resignation of its directors. The announcement was made in a statement signed by Uzoma Uja, Company Secretary. The firm stated that it has become imperative to expand the size of the Board of Directors to accommodate increased diversity and experience. As the Company completes the consolidation, it is important to right-size the Board, while still allowing for diversity and breadth of experience.

Accordingly, at the Annual General Meeting on the 7th of June 2017, shareholders approved an amendment to Article 82 of the Articles of Association of the Company to reduce the size of the Board from 17 to 11.

In line with the approval of shareholders and following the conclusion of the Annual General Meeting, the following Directors voluntarily resigned from the Board effective 8th June:

  1. Mr. Joe Hudson
  2. Mr. Jean-Christophe Barbant
  3. Mrs. Oludewa Edodo-Thorpe
  4. Mr. Thierry Metro.
  • Daar Communications Plc published its 2017 quarter three financial statement. The statement showed that the company’s topline shrank by 412.68 percent and the deficit bottomline grew by 154.68 percent.
  • Honeywell Flour Mills Plc announced the resignation of a director. In a statement signed by Mrs Oluwayemisi Busari, the company informed that “Mrs Oluseye Sandey has resigned from the board of the the company with effect from 28th April, 2017 in order to pursue her personal goals. Her resignation letter will be tabled before the board of Directors during its quarterly meeting in June 2017”.
  • Royal Exchange Plc published its 2016 Audited and the 2017 Quarter 1 financial reports. The 2016 Audited report showed that the company’s topline grew by 13.79 percent and the deficit bottom-line grew by 232.51 percent. The 2017 Quarter one financial report showed that topline grew by 17.09 percent and the deficit bottom-line grew by 226.54 percent.
  • E-Tranzact announced 10 kobo per share as final dividend, qualification date is Friday June 23, 2017, closure date is from Monday June 26 to Friday June 30, 2017 (Both dates inclusive) and payment date.
  • UPDC Real Estate Investment Trust published its 2016 Audited financial statement. The statement showed that the company’s topline shrank by 45.42 percent and the deficit bottomline declined by 97.70 percent.
  • Berger Paints Nigeria Plc cleared the air on the industrial dispute rocking its personnel. In a statement signed by Oluseun Oluwole, Company Secretary/ Legal Adviser, the paint company stated that following the new development in respect of Pension schemes, the board had fixed December 2015 as the exit date of the Company’s gratuity scheme, and this decision has been communicated to the staff severally.
  • PZ Cussons Nigeria Plc announced the commencement of closed period. The announcement which was made in a statement signed by Abiola Lasehinde, Company Secretary/ Head, Corporate Services for Africa, had it that at a meeting of the board of directors of the company has been slated for Monday 7th August, 2017 to consider the Audited Financial statements of the company for the year ended 31st May, 2017 and Management’s proposal on dividend.
  • Daar Communications Plc published its 2016 Audited financial statement. The statement showed that the company’s topline shrank by 89.94 percent and the deficit bottomline grew by 29.39 percent.
  • United Bank for Africa (UBA) announced that it has successfully raised USD500 million, through debut Eurobond, which has 240% over-subscribed. The bank made the announcement in a statement signed by Bili A. Odum, Group Company Secretary. The bank said “the bond which is rated by both Fitch (B, stable outlook) and S&P (B, stable outlook), matures in June 2022 and was issued with a coupon rate of 7.75%. This pricing is seen by the global investor community as the best possible pricing for a debut issue from a financial institution of Nigerian Origin in the current market.
  • Universal Insurance Plc published its 2015 Audited financial statement. The statement showed that the company’s topline grew marginally by 0.89 percent and the bottom-line declined by 333.48 percent.
  • Skye Bank Plc gave a further update on the late filing of the audited financial statement for the year ended December 31, 2016. In a statement signed by Babatunde Osibodu, Company Secretary/ General Counsel, the company informed the Nigerian Stock Exchange, its shareholders and other stakeholders that “most of the challenges faced in the completion of the audit exercise have been surmounted and as previously stated, the draft Audited Financial Statement (AFS) for the year ended 31 December 2016 is currently awaiting the final approval of the Bank’s primary regulator, the Central Bank of Nigeria (CBN).
  • Mutual Benefits Assurance Plc published its 2017 Quarter one financial statement. The statement showed that the company’s topline grew by 12.56 percent and the bottom-line grew by 51.92 percent.
  • Transnational Corporation of Nigeria Plc (Transcorp) issued announced its closed period. In a statement signed by Helen Iwuchukwu, Group Company Secretary, the company stated that its closing period will commence from July 5 to July 22, 2017.
  • Julius Berger announced that it has appointed new directors. In a statement signed by Cecilia E. Madueke, Company Secretary, the firm said Mrs Gladys Olubusola Talabi and Mrs Belinda Joke Disu have being appointed as Non-Executive directors of the company with effect from June 30, 2017.
  • Trancorp Hotels announced its closing period. In a statement signed by Helen Iwuchukwu, Company Secretary, the company said, it has complied with the provisions of Rules 15, 16 and 17 of the amending listing rules of the Nigerian stock Exchange. “In view of the Board meeting slated for July 12, 2017, all Directors and staff of Transcorp Hotels Plc have been duly informed that the following dates are regarded as “Closed Period” in respect of which no employee or director of Transcorp Hotels Plc may buy and or sell shares of the Company – From June 26, 2017 to July 14, 2017” the company further stated.

 

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