The Nation Newspaper

Category: Equities

  • FCMB grows pre-tax profit by 109% to N16.3b

    FCMB grows pre-tax profit by 109% to N16.3b

    The FCMB Group Plc recorded impressive growth across key performance indicators in 2016 as the financial services group grew profit before tax by 109 per cent to N16.3 billion. The Group is the holding company for First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited.
    Key extracts of the audited report and accounts of the Group for the year ended December 31, 2016 showed that the group demonstrated resilience against the tough operating environment. Profit before tax rose by 109 per cent to N16.3 billion in 2016 as against N7.8 billion recorded in 2015. Profit after tax also rose to N14.3 billion in 2016 as against N4.8 billion in 2015. Gross earnings rose by 16 per cent to N176.35 billion in 2016 as against N152.51 billion in 2015.
    With the improvement in the bottom-line, the board of the directors has recommended a dividend per share of 10 kobo to shareholders. This implies a dividend yield of more than 10 per cent for the group.

    Further analysis showed that non-interest income grew to N47.7 billion, an 86 per cent increase on N25.6 billion recorded in 2015. This was mainly driven by N29.3 billion in foreign exchange revaluation gains. Consistent with its value as a helpful financial institution committed to the growth of individual and business aspirations, the FCMB Group results showed an increase in credits advanced to customers last year. Loans and advances rose by 11 per cent from N593 billion in 2015 to N660 billion in 201. Total assets increased marginally by from N1.16 trillion in 2015 to N1.17 trillion in 2016.
    Also, operating expenses decreased by 2.0 per cent to N65.8 billion while non-performing loans to total loans ratio declined from 4.2 per cent in 2015 to 3.7 per cent in 2016. The group’s capital adequacy ratio stood at 16.7 per cent. However, customer deposits reduced to N658 billion from N700 billion.
    The report showed that First City Monument Bank (FCMB) Limited, the flagship of FCMB Group and the commercial and retail banking arm of the holding company, also sustained its impressive performance over the years. The bank’s net interest income grew by nine per cent from N62.8 billion in 2015 to N68.6 billion in 2016

  • Sterling Bank launches new five-year strategic plan

    Sterling Bank launches new five-year strategic plan

    •Grosses N111b earnings in 2016

    Sterling Bank Plc has launched a new five-year strategic plan that will enable the bank optimise its potential and generate better returns for stakeholders. The new strategic plan 2017-2021 will see aggressive growth in the bank’s retail banking business with several innovations to consolidate the steady growth of the bank over the years.
    Its Managing Director, Mr. Yemi Adeola, who outlined the plan agaainst the background of the release of the bank’s 2016 audited report and accounts, said the bank will over the next five years grow its retail banking business aggressively, while improving on efficiency of its operations.
    “We expect that the government’s fiscal intervention schemes alongside supportive economic policies will create pathways for economic recovery. Over the next five years, we will be steering our ship differently and aggressively, growing the retail business through electronic channels,” Adeola said.
    He outlined that the bank will prioritise efficiency over scale with the goal of achieving steady growth and sustainable returns to all stakeholders and optimise its cost profile while providing its customers with the best service.
    Adeola added that the bank would improve on its innovative banking, driven by market insights that would enable it to satisfactorily serve its customers and earn their trust, implement significant investment in technology-led growth initiatives as well as accelerate remarkable growth of its non-interest banking segment.
    Sterling Bank grew its top-line earnings for the sixth consecutive year in 2016 to N111.44 billion as the commercial bank continued to drive the efficiency of its core commercial banking business. Key extracts of the bank’s audited report and accounts for the year ended December 31, 2016 released last Friday at the Nigerian Stock Exchange (NSE) showed that the bank’s gross earnings rose from N110.19 billion in 2015 to N111.44 billion in 2016, in spite of the difficult macro-economic environment that characterised the 2016 fiscal year.
    The report showed that net interest income increased by 41.6 per cent to N56 billion in 2016 as against N39.5 billion in 2015 on account of a 22.5 per cent increase in interest income and a 4.2 per cent increase in interest expense. Profit before and after tax stood at N6.0 billion and N5.16 billion respectively.
    The bank grew its balance sheet size as total assets rose by 4.3 per cent from N799.45 billion in 2015 to N834.19 billion in 2016. Net loans and advances increased by 38.2 per cent to N468.2 billion in 2016 as against N338.7 billion in 2015, driven primarily by foreign exchange revaluation. Customer deposit was steady at N584.7 billion in 2016 as against N590.9 billion in 2015. The bank’s shareholders’ funds stood at N85.7 billion at the close of the financial year.
    Adeola noted that 2016 was a difficult year for the Nigerian economy with high inflation rate, weak oil prices, lower crude oil output and foreign exchange supply shortages. According to him, the multiple challenges and the various regulatory responses during the year put significant downward pressure on the earnings of banks.
    He said in spite of the difficulties, Sterling Bank continued on its growth trajectory as it successfully deployed the “best in class” core banking application – Temenos T24; grew its active customer base and launched the disruptive, award winning payments solution, ChatPay, as the bank optimised its traditional electronic channel offerings.
    He added that the initiatives would enable the bank to optimise its operating efficiency and position it to exploit emerging business opportunities.

  • Rosabon Emerging Enterprise Fund launched

    Rosabon Financial Services has launched Rosabon Emerging Enterprise Fund (REEF) to empower the small and medium scale enterprises, SMEs in Nigeria. REEF aims to empower SMEs by providing them the opportunity to gather adequate business knowledge, which can be used to boost their revenue and profitability in the long run.
    Rosabon seeks to provide free access to quarterly SME seminars, networking opportunities as well as access to business loans for the SMEs.
    Launched as one of Rosabon’s development programmes for SMEs, the product will help SMEs expand and remain profitable while ensuring that they have adequate funds set aside for other long or short term financial goals.
    Asides, REEF allows business owners to make investments against which they earn highly competitive returns whilst being able to access a certain percentage in business loan of their invested sum. Simply put, rather than plough all their profits back into the business, SME owners can use the high returns on their investment for working capital needs and business expansion.
    REEF also provides other benefits such as competitive interest on investment, Free publicity of SMEs business on Rosabon website and other platforms etc. Through REEF, SMEs can earn interest on investment and collect same upfront to fund working capital needs.
    Speaking on the solution, Marketing Communications Manager, Rosabon Financial Services, Kehinde Ruth Onasoga, said: “It does not take a finance degree to know that the desire of every business owner is to continuously expand and mark profitability. This is, however, quite difficult in a country like Nigeria where SMEs are the least serviced set of people by financial institutions as they rarely get access to easy and convenient funding.”

    “Apart from the inability to access funding, many SMEs have remained stagnant because they have not been able to strike a balance between their expenses and investment plans due to lack of proper and suitable financial package to help them achieve this. This is why Rosabon has come up with this solution to help SMEs grow.”

  • Union Bank plans N50b rights issue in Q2

    Union Bank plans N50b rights issue in Q2

     • Records steady growths in 2016

    Union Bank of Nigeria (UBN) Plc is concluding arrangements to float a rights issue of N50 billion this quarter as the first-generation bank moves to accelerate its business growth. The new capital raising comes against the background of steady growths in key performance indicators of the commercial bank in 2016.
    Chief Executive Officer of the bank, Mr. Emeka Emuwa, at the weekend stated that the bank would launch rights issue in the second quarter of 2017 to raise up to N50 billion in Tier 1 capital, following earlier approval of the issue by the bank’s shareholders.
    According to him, the new equity funds would support the bank’s efforts to accelerate business growth and reposition itself as a leading commercial bank in Nigeria. The additional funding will also allow Union Bank to maintain compliance with regulatory capital requirements.
    He outlined that the bank had in 2016 focused on executing its priorities across the different business segments, especially in the retail space, with an aggressive strategy to increase adoption of its alternate channels.
    He pointed out that the success in this area, along with improved core interest earnings, contributed to pre-tax profit growth of six per cent in 2016.
    He added that the bank’s research-led product development strategy, coupled with an upskilled sales force and targeted marketing campaigns, propelled customer deposit base by 15 per cent with a 73 per cent increase in new-to-bank customers.
    “While the operating environment remains a challenge, we are focused on our 2017 priorities which include raising Tier 1 capital to execute our growth agenda across our retail, commercial and corporate businesses, particularly transaction banking and value chain,” Emuwa said.
    He noted that the bankank will celebrate its centenary in 2017 under three broad themes of celebrate, impact and lead.
    “Our 100th anniversary presents a unique opportunity for Union Bank to frame its own story, highlighting our many successes over the last century and presenting our simpler, smarter vision of banking and corporate citizenship to a new generation of customers,” Emuwa said.
    Key extracts of the audited report and accounts of Union Bank of Nigeria (UBN) Plc for the year ended December 31, 2016 released at the weekend showed that gross earnings rose by 8.0 per cent from N117.2 billion in 2015 to N126.6 billion in 2016. Profit before tax also rose from N14.9 billion in 2015 to N15.7 billion in 2016. Interest income had grown from N90.9 billion to N98.0 billion, driven by loan book growth and improved bank asset yields. Also, interest expense declined by six per cent from N35.2 billion to N33 billion as improved customer funding base and less reliance on expensive interbank funding led to drop in core cost of funds to 5.23 per cent in 2016 as against 6.64 per cent in 2015.
    The balance sheet saw a 38 per cent growth in gross loans from N388.8 billion in 2015 to N535.8 billion in 2016, with 25 per cent of the growth, resulting from impact of devaluation on foreign currency loans. Customer deposits grew by 15 per cent from N570.6 billion to N658.4 billion, driven mainly by new product offerings, increased market penetration and improved customer offtake. Total assets rose by 12 per cent to N1.12 trillion in 2016 as against N1.0 trillion in 2015.

    Emuwa noted that the performance of the bank was driven by expanded retail product portfolio with the launch of five new products as well as accelerated customer on-boarding on the bank’s mobile and internet banking following the launch of new platforms with expanded capabilities in 2016.
    Chief financial officer, Union Bank of Nigeria (UBN), Oyinkan Adewale, said the group continued to drive cost optimisation, with cost-income-ratio declining to 66.2 per cent in 2016 from 70.7 per cent in 2015, notwithstanding a high inflation environment.
    “We will continue to focus on optimising cost in 2017. As we look to raise additional capital to execute business priorities, we will maintain our prudent approach to growing our risk assets while aggressively growing low cost deposits,” Adewale said.
    Adewale also noted that on the back of strong customer deposits, the bank reduced average interbank local currency borrowing by 75 per cent, leading to 141 basis points reduction in primary cost of funds and 17 per cent increase in net interest income.

  • Stakeholders urge banks to focus on customers’ needs

    Banking and commu-nications experts have called on commercial banks to understand and prioritise customers’ needs to promote entrepreneurship and economic development.
    Speaking at the maiden ‘BRANDish Meeting of Minds’ with the theme: ‘What Nigerian Banks Should do Differently’, Chief Executive Officer (CEO) Proshare Nigeria Limited, Femi Awoyemi, said banks target their best services at the 25 per cent of Nigerians that have been empowered to be valuable to the lenders.
    He urged the Central Bank of Nigeria (CBN) to allow disruption in the sector, using policies that will make banks development-oriented.
    He urged banks to be more customer-centric by investing in consumer insight, which would enable them know more about their customers, communicate better and be able to tailor their services to meet customers’ needs.
    Group CEO Prima Garnet Africa, Lolu Akinwunmi, advised banks to start optimising their retail delivery and simplify their business and operational models. According to him, the service gap between the banks and their customers was evident in bank advertisements, which portray and celebrate bank executives rather than communicate specific service offerings and benefits to customers.
    He predicted that with the current global trend and evolving technology, the brick and mortar banking model will not be relevant to the upcoming generation, as brick will cease and banking will become a game of clicks.
    President, Consumer Advocacy Foundation of Nigeria, Sola Salako, regretted that banks rarely lend to Small and Medium Enterprises (SMEs) and only focus on big businesses and multinationals. “Banks look for their money in government circles. So, they care less about the other customers. They are concerned about the macro and don’t understand the micro economics. But when you finally grow the business, they start knocking on your door and you wonder where they were when you were struggling to build the business. Let’s say the bitter truth, our banks are not responsible corporate citizens,” she said.
    She suggested that it was the failure of the banks in their customer services and market understanding that prompted Ponzi schemes such as MMM to thrive.
    Analyst-in-Chief, BRANDish, Ikem Okuhu, said the company decided to look around the Nigerian marketing and economy space, identify areas where there are challenges and finding experts in that area to aggregate thoughts and ideas on how things can be done better.
    “We do not believe that our solutions are outside of this country because in our career, we have worked with brilliant, dedicated and exceptionally gifted Nigerians, passionate about this country and who are also willing to contribute towards a needed economic metamorphoses,” he said.
    He added: “This is our first Thought Leadership event and with the quality of people that attended and the kind of engagement and interrogation that followed their papers, I am convinced we have done quite well.”
    The event, according to him, will be quarterly, with the next parley slated for the last week of June, 2017 and will focus on Good Manufacturing Practice (GMP).
    “It is not just about banking. Nigeria is challenged on many fronts. But we chose the Banking Sector for the singular reason of the severe challenges it is facing now, especially at a time Nigeria needs serious economic salvation. At the end of today, there was consensus that this event should be repeated to ensure all senior players in banking and regulatory bodies attend,” he said.

  • Access Bank lists priorities for 2017 as shareholders applaud N18.8b dividend

    Access Bank lists priorities for 2017 as shareholders applaud N18.8b dividend

    Access Bank Plc has outlined a three-point priority for the 2017 business year as shareholders commended the board and management of the first tier bank for its resilient performance and dividend payout. About N18.8 billion was paid out for the 2016 business year.
    The bank’s Group Managing Director, Mr. Herbert Wigwe, said the lender would focus on three major priorities in 2017 as it concludes its third five-year strategic plan this year.
    He outlined that the bank would in the new business year cement its position as a dominant corporate bank and establish itself as a formidable retail bank, adding that the bank would also leverage digital technology and innovation to create value for its customers while unlocking new revenue streams.
    According to Wigwe, the third topmost priority of the bank in 2017 would be to deliver seamless and superior customer experience across all its service touch points.
    “2017 marks the end of the rolling five-year strategy implemented in 2013. Plans for the next five-year phase have begun in earnest to position the group, not only as the world’s most respected African bank, but as an emerging global player,” Wigwe said.
    To him, by diligently executing its strategy, the bank would continue to maintain improved profitability and create the capacity to continue to invest in its key areas of strength.
    “I am confident that achieving these goals will set the stage for the execution of our next corporate strategic plan. As we look ahead, we remain more confident than ever of our execution capabilities to achieve our vision of being the world’s most respected African bank,” Wigwe said in a summary outlook.
    Meanwhile, at the bank’s annual general meeting in Lagos, shareholders unanimously approved the recommendation of the board to distribute N18.8 billion for the 2016 business year as against N15.9 billion paid for the 2015 business year. Shareholders will receive a final dividend per share of 40 kobo in addition to an interim dividend per share of 25 kobo, bringing the total dividend per share for the 2016 business year to 65 kobo. The bank had paid a total dividend per share of 55 kobo, including a final dividend per share of 30 kobo and interim dividend per share of 25 kobo for the 2015 business year.
    Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2016 showed that gross earnings rose by 13 per cent while pre and post tax profits grew by 20.4 per cent and 8.5 per cent respectively. Group gross earnings rose from N337.40 billion in 2015 to N381.32 billion in 2016. Profit before tax also rose from N75.04 billion in 2015 to N90.34 billion in 2016. After taxes, net profit rose from N65.87 billion to N71.44 billion.
    Shareholders, who spoke at the general meeting, applauded the resilience of the bank and its ability to sustain impressive returns in spite of the tough operating environment.
    Shareholders’ leader and founder, Independent Shareholders Association of Nigerian (ISAN), Sir Sunny Nwosu, described the bank’s performance as remarkable, noting that the increase in dividend payment was an indication of the strong fundamentals of the bank.
    Another shareholder, Mr Nonah Awoh, also commended the bank and urged its management to further focus on deposit as a major boost to the bank’s revenue.
    In her address to shareholders, Chairman, Access Bank Plc, Mosun Belo-Olusoga, assured shareholders that the bank would remain focused in its pursuit of enhancing shareholders’ value as it strives to become the world’s most respected African bank.
    She said the bank has, with its performance over the years, proven its resilience as its responsiveness and agility became key drivers of strong and sustainable performance in an increasingly unpredictable operating environment.
    She assured that the board would continue to provide the stability and strategic direction the bank requires to deliver operational excellence.

  • Unity Bank supports Nigerian Immigration Service

    Unity Bank supports Nigerian Immigration Service

    Unity Bank Plc has upgraded the Nigerian Immigration Service (NIS) lounge in Festac Town, Lagos. The facility, the bank said, would make it easier for people to obtain and renew their international passports at the NIS office.
    The inuaguration of the facility, the bank said, supports its Corporate Social Responsibility (CSR) objectives of supporting programmes and projects that are in public interest.
    The bank’s Managing Director /Chief Executive Officer, Mrs. Tomi Somefun, said the upgrade of the facility was informed by the need to provide conducive ambiance for numerous stakeholders that visit the centre for one service or the other.
    “For us at Unity Bank Plc, it is about extending our service to the public, hence, we observed the need to intervene by providing quality ambiance for the NIS Lounge with the hope that it will impact the public meaningfully,” she said.
    Mrs. Somefun, represented by the Executive Director South, Temisan Tuedor, praised NIS management at FESTAC Town for providing the platform, noting that it was the bank’s desire to continue to partner government on other touch points that could impact on the communities where they operate.
    The NIS Assistant Comptroller General in charge of Zone 2, I. Y. Ahmad, praised Unity Bank for upgrading the facility to enhance NIS service quality to numerous applicants. He called on other corporate bodies to emulate the bank’s example.

  • Stock Exchange suspends trading on Unic Insurance

    The Nigerian Stock Exchange (NSE) has placed UNIC Insurance Plc on full suspension, following approval of the scheme of arrangement that will lead to a restructuring of the insurance company under an investment holding company.

    Full suspension disallows both trading and price movement on a particular stock unlike technical suspension which allows trading without price movement.

    The NSE stated that the full suspension was in compliance with the process required for the approved scheme of arrangement between UNIC Insurance and shareholders of the insurance company.

    Already, the NSE has approved the rearrangement of UNIC Insurance under a new core investor and shareholding structure. The restructuring will allow the ailing insurance company to access capital through a new core investor.

    The scheme of arrangement included the plan by South Africa’s Liberty Holdings to acquire 75 per cent majority equity stake in Unic Insurance Plc for 160 million Rands, about $12 million and an equivalent of N3.72 billion. Liberty Holdings is an investment holding company and it already has investment in the Nigerian market through Total Health Trust.

    Chief executive officer, Liberty Holdings, Thabo Dloti recently outlined the group’s plan to expand into East and West Africa regions as part its strategy to grow its presence in West Africa through long-term insurance business and asset management business.

    “It may be having difficulties now, but everything indicates to us that in the long term Nigeria is going to be a big contributor of growth if you are doing business in Sub-Saharan Africa,” Dloti said.

    With more than five decades of operations, UNIC Insurance has struggled with declining performance in recent years. Like most insurance stocks, it has stagnated at its nominal price of 50 kobo at the NSE.

    Many analysts saw the merger and acquisition deal between UNIC Insurance and Liberty Holdings as a possible boost for the two companies.

    Although relatively low turnover-to-net assets ratios of most insurance companies may on one hand imply underutilization of shareholders’ resources, these also indicate significant headroom for underwriting capacity and growth on the other hand.

    Most analysts believe there is still much growth potential in the Nigerian insurance industry. From government to the National Insurance Commission (NAICOM) and to operators, insurance stakeholders have recently taken major steps to enliven the performance of the industry. The passage of the Nigeria Content Development Act and other laws on compulsory insurance by government has opened up tremendous business opportunities for insurance companies. The Local Content Act requires that all insurance risks associated with oil and gas sector including prospecting, exploration, drilling, constructions, shipping, distribution, marketing and transportation must be insured in Nigeria with registered Nigerian insurance company. This law alone represents immense opportunity for well-capitalised and stable insurance companies.

    Besides, NAICOM has also in recent period taken many far-reaching and proactive steps to standardize insurance operations and enforce conformity with best practices. NAICOM has introduced new accounting standards with more stringent provisions to ensure that insurance profit and loss accounts and balance sheet showed the true state of affairs. Insurers are also expected to make timely rendition of accounts, making their returns more predictable. With the broad provisions of the Insurance Act and related NAICOM guidelines, the tough stand of the insurance regulator has greatly improved the operating environment. The industry regulator is also leading the charge for compliance with existing compulsory insurance laws.

    Although still a highly fragmented industry with some 51 insurance companies, well-managed quoted risk companies stand to benefit both in the event of industry consolidation or market-driven competitiveness that places premium on security of insurance rather than lower rates. With estimated penetration of some seven per cent, Nigeria’s large population and expansive economy also put insurers on good footings.

  • Cadbury Nigeria posts N296.4m loss

    •Turnover rises to N30b

    Cadbury Nigeria Plc recorded a modest growth in sales in 2016, but increased cost of sales and operating expenses constrained the bottom-line to a net loss of N296.4 million.

    Following the development, the Board of Directors  will not be recommending any dividend payment to shareholders. The company had distributed N1.22 billion as cash dividends for the 2015 business year.

    Key extracts of the audited report and accounts of Cadbury Nigeria Plc for the year ended December 31, 2016 released yesterday, showed that total sales rose by eight per cent from N27.83 billion in 2015 to N29.98 billion in 2016. Cost of sales however rose by 22 per cent from N18.89 billion to N23.12 billion. Gross profit thus dropped by 23 per cent from N8.93 billion in 2015 to N6.86 billion in 2016. While the company held down operating expenses, operating profit reversed from N1.42 billion in 2015 to a loss of N732.85 million in 2016.

    With these, the company’s pre-tax profit of N1.58 billion in 2015 was replaced with pre-tax loss of N562.87 million. After taxes, net loss stood at N296.40 million in 2016 as against a net profit of N1.15 billion in 2015. Earnings per share thus reversed from 61 kobo in 2015 to a loss per share of 16 kobo in 2016. Net assets per share also declined by 10 per cent from N6.54 in 2015 to N5.89 in 2016, with shareholders’ funds declining by the same margin from N12.3 billion in 2015 to N11.1 billion in 2016.

    Cadbury Nigeria had slipped into loss in the third quarter 2016, raising concerns over the worsening impact of sluggish sales and rising costs of operations. Turnover stood at N21.33 billion by third quarter 2016 as against N21.07 billion in third quarter 2015. The company however recorded a loss of N842.16 million in third quarter 2016 as against a modest pre-tax profit of N40.79 million in comparable quarter of 2015.

    Mondelçz International, a global snacks powerhouse that holds 74.97 per cent equity stake in Cadbury Nigeria recently drafted its director of the innovation kids wholesome segment of its global biscuits business based in East Hanover, United States of America, Mr. Muhammad Amir Shamsi, to take over the leadership of the Nigerian subsidiary.

    Shamsi resumed on February 1, 2017.

    Shamsi is expected to help drive critical performance measures that could see Cadbury Nigeria regaining its declining market share.

    Shamsi is an experienced hand in West Africa. He was the group’s marketing director for West Africa between October 2013 and March 2016. He had earlier served as head of new categories and Gum and Candy in West Africa between September 2012 and September 2013. He joined Mondelçz International in June 2009.

  • Equities open with N4b marginal gain

    After notching up N144 billion in net capital gain last week, Nigerian equities opened yesterday with a tinge of bearishness, although gains by a handful of highly capitalised stocks mitigated the widespread underlying negative sentiments.

    With nearly two decliners for every advancer, the market came under sell pressure but gains by large-cap companies such as Guaranty Trust Bank, Nestle Nigeria, Mobil Oil Nigeria and Ecobank Transnational Incorporated (ETI) propped up the market to a marginal gain of N4 billion or 0.07 per cent.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from its opening value of N8.878 trillion to close at N8.882 trillion. The All Share Index (ASI), the benchmark index for the stock market, also inched up by 0.07 per cent from 25,653.16 points to close at 25,671.55 points. Average year-to-date return thus moderated to -4.48 per cent.

    Most sectoral indices also closed on the upside, reflecting the domestic influence of the large-cap stocks that drove the overall market position. The NSE Oil & Gas Index rose by 0.95 per cent. The NSE Banking Index trailed by 0.9 per cent. The NSE Consumer Goods Index rose by 0.4 per cent while the NSE Insurance Index closed flat. However, the NSE Industrial Goods Index declined by 0.3 per cent.

    Nestle Nigeria, NSE’s highest-priced stock, led the 13-stock gainers’ list with a gain of N19.99 to close at N750. Mobil Oil Nigeria followed with a gain of N14 to close at N294. Guaranty Trust Bank, the most capitalised banking stock and third most capitalised quoted company, rose by 85 kobo to N27.15 while Ecobank Transnational Incorporated and Nigerian Aviation Handling Company chalked up 10 kobo each to close at N9.80 and N2.10 respectively.

    Most equities however ended on the negative side as investors launched a mix of profit-taking and portfolio review in anticipation of the largest stream of corporate earnings within the next seven days. Guinness Nigeria led the 22-stock losers’ list with a loss of N3.32 to close at N63.18. Julius Berger Nigeria followed with a loss of N1.95 to close at N38. Dangote Cement declined by N1 to close at N165. UAC of Nigeria lost 49 kobo to close at N13.51 while Cadbury Nigeria dropped by 21 kobo to close at N7.80 per share.

    Total turnover stood at 495.23 million shares worth N2.55 billion in 2,587 deals. Custodian and Allied was the most active stock with 176.41 million shares worth N541.59 million. FBN Holdings followed with 150.35 million shares valued at N470.69 million while United Bank for Africa placed third with 25.1 million shares worth N137.5 million.

    “Market performance remains driven by speculation as investors cherry pick value stocks with attractive entry prices. However, a weaker market breadth suggests that investors may take profit in subsequent trading sessions,” Afrinvest Securities stated.