Weak earnings by banks halt Nigerian stocks upside

Twenty-one (21) equities appreciated at price during the week, lower than sixty-nine (69) equities in the previous week.

By Olumide Adesina

Nigerian Stocks ended the week cumulatively on a bearish note.

The All-Share Index and Market Capitalization depreciated by 2.57% to close the week at 34,136.82 and N17.838 trillion respectively.

A total turnover of 11.400 billion shares worth N35.892 billion in 39,265 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 4.509 billion shares valued at N58.733 billion that exchanged hands last week in 47,140 deals.

• The Construction/Real Estate industry (measured by volume) led the activity chart with 8.529billion shares valued at N6.055 billion traded in 438 deals; thus contributing 74.82% and16.87% to the total equity turnover volume and value respectively.
• The Financial Services Industry followed with 1.991 billion shares worth N19.933 billion in 21,725 deals. The third place was the Conglomerates Industry, with a turnover of 423.702 million shares worthN526.698 million in 1,962 deals.
• Trading in the top three equities namely UAC- Property Development Company Plc, Transnational Corporation of Nigeria Plc. and Jaiz Bank Plc. (measured by volume) accounted for 9.259 billion shares worth N6.639 billion in 1,958 deals, contributing 81.22% and 18.50%to the total equity turnover volume and value respectively.
• Twenty-one (21) equities appreciated at price during the week, lower than sixty-nine (69) equities in the previous week. Fifty-five (55) equities depreciated in price, higher than twelve(12) equities in the previous week, while eighty-five (85) equities remained unchanged, higher than eighty (80) recorded in the previous week.

Top 10 gainers W/W

1. B.O.C. GASES PLC. up 39.88% to close N 6.77
2. TRIPPLE GEE AND COMPANY PLC. up 19.57% to close N0.55
3. NEM INSURANCE PLC up 17.27% to close N2.58
4. AIICO INSURANCE PLC. up 12.22% to close N1.01
5. IKEJA HOTEL PLC up 10.00% to close N1.10
6. LINKAGE ASSURANCE PLC up 10.00% to close N0.55
7. CONOIL PLC up 9.45% to close N20.85
8. UPDC REAL ESTATE INVESTMENT TRUST up 9.21% to close N4.15
9. CORNERSTONE INSURANCE PLC up 6.90% to close N0.62
10. CHAMPION BREW. PLC. up 6.00% to close N1.06

Top 10 losers W/W

1. CORONATION INSURANCE PLC down 21.15% to close N0.41
2. OANDO PLC down 19.75% to close N3.21
3. JAPAUL OIL & MARITIME SERVICES PLC down 18.18% to close N0.27
4. TRANSNATIONAL CORPORATION OF NIGERIA down 13.04% to close N1.00
5. FBN HOLDINGS PLC down 12.12% to close N7.25
6. STERLING BANK PLC. down 11.93% to close N1.92
7. NIGERIAN AVIATION HANDLING COMPANY PLC down 11.54 % to close N2.30
8. FIDELITY BANK PLC down 11.42% to close N2.56
9. FCMB GROUP PLC. down 11.40% to close N3.03

Outlook

Nigerian Stocks had its bullish run halted arbitrarily on the bias that Stock traders and investors intensified their profit, taking into account the significant amount of weak earnings recorded by Nigerian Banks.

• It was unsurprising to see four Nigerian banks in the top 10 losers chart for the week, as investors fretted on such performance on the basis that Nigeria’s banking industry remains the most vibrant after Agriculture, Energy in Africa’s largest economy.
• Nairametrics, envisages you would seek the advice of a certified stockbroker when choosing stocks to buy, as most Nigerian stocks often offer cyclic returns.

Olumide Adesina

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Featured Financial Market Analysis for a Fortune Global 500 Company. Member of the Chartered Financial Analyst Society. Follow Olumide on Twitter @tokunboadesina or email olumide.adesina@nairametrics.com.