October 17, 2018
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian equities market on Wednesday closed the third trading session of the week negative, losing 0.87 percent to 32,437.35 basis points compared to +0.95 percent gain recorded the previous session, as Year-to-Date (YTD) returns currently stands at -15.18 percent on decline in bellwether stocks.
InvestmentOne reports that market breadth index was negative with 11 gainers compared to 22 stocks that declined.
According to the report, Pharma Deko Plc with a loss of -10.00 percent was the topmost loser, while Sunu Assurances Nigeria Plc with a gain of +10.00 percent led the gainers’ chart.
Top tier lender, Zenith Bank Plc with a loss of -1.10 percent was the most actively traded with 87 million units of shares worth about N1.98 billion.
In terms of sector performance, the Nigerian Stock Exchange (NSE) Industrial index dipped by 1.54 percent, largely driven by the shares of cement producer and most capitalised listed company on the Nigerian bourse, Dangote Cement Plc which dipped by -2.44 percent.
The NSE Banking index closed down by 0.19 percent, on the back of the declines in the shares of Fidelity Bank Plc and FBN Holdings Plc; both down -4.74 percent and -1.62 percent each, Africa’s global bank, the United Bank for Africa Plc and Zenith Bank Plc depreciated -1.22 percent and -1.10 percent apiece.
In the same vein, the NSE Oil & Gas index: lost 0.18 percent, majorly due by the sell-offs in the shares of first dual listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc and Forte Oil Plc; both down -0.81 percent and -0.45 percent respectively.
The NSE Consumer Goods index declined by 0.14 percent, due to the losses in the shares of United Africa Company of Nigeria Plc and GlaxoSmithLline Consumer Nigeria Plc both down -9.09 percent and -3.57 percent each, beer producer, Nigerian Breweries Plc also declined by -0.56 percent.
In terms of earnings release, the United Bank for Africa Plc released its third quarter (Q3) 2018 results which showed 0.9 percent year-on-year rise in profit before tax to N21.0 billion, while profit after tax declined by 3.6 percent year-on-year to N17.9 billion.
Also, cement manufacturer, Lafarge Africa Plc released its Q3 2018 results which showed a loss before tax and loss after tax of N8.02 billion and N6.47 billion compared to N17.07 billion and N18.79 billion in Q3 2017 respectively.
Guaranty Trust Bank Plc released its Q3 2018 results which showed 11.6 percent year-on-year and 11.3 percent year-on-year rise in profit before tax and profit after tax to N54.6 billion and N46.6 billion respectively.
“Despite the recent sell-off in the equities market, we believe this presents decent entry opportunities in our quality names,” the InvestmentOne report affirmed.
