Market indices sustain growth on NSE, amid Dangote Cement gain

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…Onyema says NSE posts N8.30bn gross earnings in 2017 ***

The bulls sustained dominance on the Nigeria bourse for the fourth consecutive day, with crucial market indices improving further by 1.58 per cent on Thursday.

This followed price appreciation by some highly capitalised and medium-size equities with Dangote Cement leading the gainers’ pack with N9.20 to close at N239. 20 per share.

NASCON followed with a gain of N2.05 to close at N22.40, while Lafarge Africa rose by N1.80 to close at N39.80 per share.

International Breweries advanced by N1.60 to close at N43.60, while Stanbic IBTC gained N1.40 to close at N47.50 per share.

Consequently, the market capitalisation grew by N220 billion or 1.58 per cent to close at N14.142 trillion, compared to N13.922 trillion recorded on Wednesday.

Also, the All-Share Index which opened at 38,435.29 inched 580.37 points or 1.58 per cent to close at 39,042.11.

On the other hand, Seplat Petroleum Development Company recorded the highest loss for the day, dropping by N5 to close at N735 per share.

Eterna Oil trailed with a loss of 36k to close at N6.90, while Zenith Bank was down by 20k to close at N27.80 per share.

FBN Holdings depreciated by 15k to close at N10.90, while United Bank for Africa also went down by 15k to close at N11.10 per share.

An analysis of the activity chart indicates that Wapic Insurance dominated trading activities, accounting for 118. 39 million shares worth N62.63 million.

Guaranty Trust Bank followed with an account of 106.09 million shares valued at N4.46 billion, while Diamond Bank exchanged 33.73 million shares worth N54.89 million.

FBN Holdings sold 30.75 million shares valued at N338.05 million, while Fidelity Bank exchanged 27.75 million shares worth N64.20 million.

In all, the volume of shares traded closed higher with a total of 492.05 million shares valued at N7.62 billion achieved in 4,726 deals.

This was in contrast with a turnover of 393.12 million shares worth N6.67 billion traded in 5,285 deals on Thursday.

In the meantime, the Nigerian Stock Exchange (NSE) on Thursday announced gross earnings of N8.30 billion and operating surplus after tax of N3.79 billion for the financial year ended Dec. 31, 2017.

The NSE made this known at the presentation of its results for the year ended Dec. 31, 2017 at its 57th Annual General Meeting (AGM) in Lagos.

The operating surplus after tax or profit after tax represents a growth of 13,712 per cent over 2016’s modest operating surplus after tax of N27.45 million, indicating the highest operating surpluses recorded in the last five years.

The results showed a total income of N8.30 billion for the Group and N3.82 billion surplus before tax for the year under review.

This represents an 86.09 per cent increase in gross earnings when compared with the N4.46 billion achieved in 2016. Surplus before tax grew by 5,629 per cent in the same period.

It will be recalled that the NSE All Share Index grew by 42.3 per cent to emerge as the third best performing stock market in the world.

The Exchange Group comprises four subsidiaries namely, Naira Properties Limited, Coral Properties Plc, NSE Consult Limited and NSE Nominees Limited.

The Exchange also has interests in NG Clearing Limited and Central Securities Clearing System (CSCS) Plc as joint venture and associate company respectively.

Mr Abimbola Ogunbanjo, President of the NSE National Council, said the year 2017 witnessed global growth, driven by improvements in global oil prices, sustained growth in investment and trade and stronger consumer confidence.

Ogunbanjo said, buoyed by improvements in the macro environment, the NSE’s management had successfully executed a number of ambitious operational and strategic initiatives.

He said demutualisation of the exchange remained a key strategic priority as a critical precursor to a more dynamic, open and efficient capital market.

“We have deployed a new four-year corporate strategy that will reposition us as a more investor friendly and customer centric exchange hub in Africa.

“With this new strategy, we are poised to deliver superior performance for our multi-faceted stakeholders especially issuers and investors who continue to access our market to raise and save capital respectively,” he said.

Mr Oscar Onyema, Chief Executive Officer of NSE, said the positive performance, affirmed the resilience of the capital market and its potential as a catalyst of economic growth in Nigeria and Africa.

According to Onyema, focus on executing NSE’s robust strategy of cost efficiency, products and revenue diversification, as well as innovative and improved operational delivery, underpins this strong performance.

He said the NSE was on track to become a more agile and flexible demutualised securities exchange, and remained hopeful that the demutualisation bill would be signed into law in 2018.

“We will continue to invest heavily in developing our services portfolio and providing innovative producs and services that are less correlated with market cycles and more importantly, global oil price,” he said.