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Stock Market: Value Of Quoted Companies Drops By N1tr In July

nseA report has shown that the value of quoted companies on the Nigerian Stock Exchange (NSE) dropped by N1.076 trillion in July from N11.421 trillion.
The drop represents a decline of 9.42 percent from the June-end figure to close at N10.344 trillion, influenced by the N310 billion drop in capitalization in the last week.

Seplat Petroleum Development Company was noted as the month’s biggest decliner, losing N40.06 or 11.78 percent.
From its financial report, which was released recently, the company reported a 36.22 percent drop in half-year turnover at 48.53 billion; while profit after tax for the period fell by 73.41 percent to N8.13 billion.

Also in July, the biggest brewers in the country followed, with Guinness losing N37.71 or 23.16 percent of its share price, while Nigerian Breweries, shed N28.98 or 19.32 percent, in a month when its half-year results showed a 7.2 percent rise to N151.67 billion, while net profit stood at N21.48 billion, down by 10.03 percent, a pointer that except something happens in the second half of the year, payout to shareholders is under threat.

Also, Unilever Nigeria lost N9.49; Dangote Cement, N9.00; Nestle Nigeria, N7.00; Stanbic IBTC Holdings, 538 kobo; Flour Mills, 500 kobo; UACN, 450 kobo; Guaranty Trust Bank, 402 kobo; Glaxo Smithkline Consumer, 400 kobo; and Presco, 381 kobo; among others.
Seven-Up Bottling Company recorded the month’s biggest gain with N10.90; followed by Beta Glass, which notched up 750 kobo; Lafarge Africa, 110 kobo; and Mobil Oil, 98 kobo.

The All-Share index fell by 3,276.56 basis points or 9.76 percent from 33,456.83 to 30,180.27, bringing year-to-date drop to 12.92 percent.
The recorded loss in July makes the second biggest in 2015 after January’s 11.12 percent loss.

Analysts at Dunn Loren Merrifield Ltd, a Lagos-based investment banking group, told clients on Friday evening that the July decline resulted from a “heightened negative investor-sentiment with a significant number of tickers closing on offer.
It added that a generally weak macroeconomic vista and corporate earnings released thus far underpinned the negative performance.
“All the sectoral indices recorded negative performance with banking (-14.28 percent) and consumer goods (-12.88 percent) being the biggest casualties”, the company added.

Meanwhile, the lopsidedness in trading activities on NSE continued in the month of July, as the top-10 stockbrokers accounted for 7.327 billion shares or 59.16 percent of transaction volume and N132.318 billion or 78.08 percent in volume terms within the period.
The data released by the bourse over the weekend accounted for the lion’s share in terms of volume and value, pooling 2.413 billion shares or 19.46 percent, valued at N38.996 billion or 23.01 percent of the month’s trading figures.
On a year-to-date basis, the top-10 brokers crossed a total of 58.041 billion units or 50.98 percent of volume over the seven-month period, exchanged at N863.226 billion or 67.5 percent.

Between January and July, the NSE data shows that CSL Strockbrokers Limited, a member of First City Monument Bank Holding Plc, recorded 12.792 billion shares or 11.24 percent; followed by Stanbic IBTC Stockbrokers with 10.027 billion or 8.81 percent of total shares traded for the period.

Rencap Securities (Nigeria) Ltd pooled 9.688 billion units or 8.51 percent; FBN Securities Limited, 5.073 billion shares or 4.46 percent; EFCP Limited, 4.481 billion shares or 3.94 percent; Securities Africa Financial Limited, 4.011 billion units, or 3.52 percent; Chapel Hill Denham Securities, 3.397 billion or 2.98 per cent; and Vetiva Capital Management, 3.13 billion units or 2.75 percent; among others.

Within the period, Stanbic IBTC beat CSL Stockbrokers to second position in value terms, with N183.658 billion or 14.36 percent, compared with N160.672 billion or 12.56 percent; Rencap followed with N146.687 billion or 11.47 percent; EFCP recorded N104.19 billion or 8.15 percent; Chapel Hill Denham, N59.577 billion or 4.66 percent; and FBN Securities, N57.014 billion or 4.46 percent; among others.

Mounir Gwarzo, Director-General, Securities & Exchange Commission (SEC), who spoke on the performance of the market so far, disclosed at the end of the third quarter Capital Market Committee (CMC) meeting in Lagos last week that although the commission is not happy with the performance of the equities’ market, its the bourses are configured.

He said, “The beauty of it is that if you look at the fundamentals of some of these (quoted) companies, they are good. It is a trend that the market is familiar with, where sometimes it does well and at other times it does not do well. But our focus at SEC and the NSE and other stakeholders is to continually engage and bring the domestic investors back to the market as we think they are very critical in lifting the market and that is why we are going into this public enlightenment programme.”

By Patrick Aigbokhan

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