By Udeme Ekwere

Tuesday, 22 Feb 2011

Trading in the shares of Nestle Nigeria Plc recorded the highest price appreciation at the close of trading activities on Monday.

The stock gained five per cent or N21.57 to close at N453.12 per share, up from N431.55 recorded last Friday.

This was as a result of its impressive year-end financials released to the Nigerian Stock Exchange on Friday.

The food/beverages company, in its audited result for the year ended December 31, 2010, recorded a turnover of N82.73bn, representing an increase of N14.41bn or 21 per cent over N68.32bn in the corresponding period of 2009.

Its profit after tax closed the year at N12.60bn, representing a 29 per cent increase over N9.78bn in 2009, while its net assets value rose by 4.3 per cent, from N10.54bn to N14.86bn.

The company’s Board of Directors has, therefore, recommended a dividend payout of N10.60 per share and a bonus of one additional share for five shares previously held by shareholders whose names are in its register as at April 27, 2011.

Two other food/beverages companies – Nigerian Bottling Company Plc and Seven-Up Bottling Company – followed on the gainers’ chart, rising by 4.9 per cent each to close at N41.89 and N45.13 per share respectively.

Aiico Insurance Plc and Ikeja Hotel Plc also gained 4.9 per cent to close at N1.06 and N1.92 per share in that order.

This led to a significant increase in major market indicators with the NSE’s All-Share Index rising by 69.97 basis points or 0.26 per cent, up from 26,639.35 to 26,709.32 points.

Similarly, the market capitalisation of the listed equities increased by N22bn or 0.26 per cent to N8.537tn, from N8.515tn recorded on Friday.

The NSE-30 Index gained 3.06 points or 0.3 per cent, from 1,166.72 to 1,169.78, while the NSE food/beverage index rose by 1.7 per cent, from 863.57 to 878.68 points.

The banking index rose by 0.3 per cent to 442.32 points, while the insurance Index recorded the highest rise by 2.3 per cent to 181.54 points.

The banking sub-sector maintained its lead on the activity chart, with investors exchanging 194.591 million shares, worth N1.780bn in 3,655 transactions. It accounted for 76 per cent and 64 per cent of total turnover and value traded respectively.

Activities in the shares of First Bank of Nigeria Plc, Zenith Bank Plc, Sterling Bank Plc and Fidelity Bank Plc drove the sub-sector’s turnover.

Source: Punch