November 4, 2024/CSL Research
The domestic market experienced a downturn last week, with the benchmark index declining by 2.03% w/w to close at 97,432.02 points and recording losses across all five trading sessions. Consequently, the year-to-date (YTD) return dropped to +30.30% from +33.00% the previous week.
Persistent selloffs in index heavyweights—ARADEL (-25.75% w/w), BUACEMENT (-11.09%w/w), and MTNN (-4.89% w/w)—fuelled this negative trend, overshadowing gains in banking stocks like GTCO (+6.35% w/w) and ZENITHBANK (+3.38% w/w).
Sector performances were mixed, with declines in Industrial Goods – NGXINDUSTR (-3.70% w/w), Insurance –NGXINS (-0.40% w/w), and Consumer Goods – NGXCNSMRGDS (-0.22% w/w), while Oil & Gas – NGXOILGAS (+1.15% w/w) and Banking – NGXBNK (+0.19% w/w) closed in positive territory. FIDELITYBK and UBA were the most actively traded stocks by volume and value, respectively.
The week featured notable earnings releases. MTNN reported strong 9M’24 revenue growth of 33.7% y/y to ₦2.37tn, but FX losses due to Naira devaluation drove a substantial increase in pre-tax losses by 7,146.4% to ₦713.63bn. This, in part, turned investor sentiment cautious and led to a 4.89% decline in stock price w/w.
GTCO continued to perform robustly, with a 161.7% y/y increase in Interest Income to ₦980.4bn and a 195.3% y/y jump in Net Profit to ₦1.1tn, resulting in an impressive 9M’24 annualized ROAE of 70.4%. Likewise, ZENITHBANK delivered strong results, with PBT up by 98.6% y/y to ₦1.0tn, Net Profit rising 90.5% y/y to ₦827.3bn, and an annualized ROAE of 37.8%.
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