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Equity market soars as investors wealth increases by N286bn

By Amaka Ifeakandu

Lagos

Transactions on the floor of Nigerian Stock Exchange (NSE) last week close in bullish trend, growing by N286 billion. The trading activities which opened week in a negative note appreciated by 2.34 per cent to settle on Friday at N12.502 trillion from N12.216 trillion traded the previous week. The Nigerian Stock Exchange All Share Index in the same vein increased by 880.95 basis points to 36320.93 from 35439.98 traded the previous day.
Similarly, all other Indices finished higher during the week with the exception of NSE Insurance index that depreciated by 1.21 per cent while the NSE ASeM Index closed flat
NSE Premium index added 72.34 to 2,395.53 0points, The NSE main board index grew by 33.98 to 1,644.91, NSE 30 index increased by 44.95 to 1667.38, NSE Banking index rose by 13.97 to 454.14, NSE Consumer Goods Index grew by 13.05 to 934.84 , NSE Oil and Gas 5.06 to 285.89, NSE Lotus II went up by 31.81 to 2,260.25, NSE Industrial goods index 122.03 to 2,106.22 and NSE Pension Index 34.98 to 1,256.59 points.
The trading which lasted four days of the week as Federal government declared Monday public holiday to celebrate Independence day of the country showed that investors traded a turnover of 1.493 billion shares worth N15.107 billion in 14,549 deals in contrast to a total of 1.326 billion shares valued at N14.086 billion that exchanged hands last week in 14,703 deals.
The Financial Services Industry led the activity chart with 1.288 billion shares valued at N10.121 billion traded in 8,334 deals, contributing 86.30 per cent and 66.99 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 89.259 million shares worth N3.154 billion in 2,760 deals. The third position went to Conglomerates
Industry with a turnover of 49.361 million shares worth N113.737 million in 491 deals.
Trading in the top three equities namely, FCMB Group Plc, Diamond Bank Plc and FBN Holdings Plc accounted for 659.042 million shares worth N1.312 billion in 1,933 deals, representing, 44.14 per cent and 8.69 per cent to the total equity turnover volume and value respectively.
A review of the investment for the week showed that 38 stocks appreciated in price against 32 of the previous week. The report also indicated that 26 listed companies depreciated in price, lower than 32 equities of the previous week, while 107 firms remained unchanged same as one recorded in the preceding week.
C & I Leasing led gainers table during the week, gaining 19.63 per cent or N0 .33 kobo to close at N1.95 kobo, Caverton Offshore Support GRP Plc followed with a gain of 18.27 per cent or N0.19 kobo to close at N1.23 kobo, Presco Plc increased by 25.25 per cent or N9.00 to close at N68.00. Other Companies appreciated in price during the week were Lafarge Wapco 13.08 per cent, Aviation Handling Company Plc 10..00, United Bank for Africa 9.26 per cent, Linkage Assurance Old 8.70 per cent, NPF Micro Finance Bank 7.21 per cent, Vitafoam Nigeria Plc 7.17 per cent, Zenith International Bank Plc 6.88 per cent.
On the contrary, MRS Oil Nigeria Plc recorded the highest loss for the week, declining 14.13 per cent or N4.52kobo to close at N27.46 kobo, Continental Reinsurance trailed with a loss of 12.00 to or N0.18 to close at N1.32 kobo while PZ Cusson Nigeria Pic, fell by 9.42 per cent or N2.45 kobo to close at N23.55 kobo, other firms that depreciated in price were Unity Bank 8.33 per cent, Cadbury Nigeria Plc 6.01 per cent, Jaiz Bank 5.71 per cent, Cutix Plc 4.80 per cent, Sterling Bank 4.76 per cent, Glaxosmith Kline Consumer Nigeria Plc 4.55 per cent and Law Union and Rock Insurance Plc 4.30 per cent.
Wema Bank plans for share capital restructuring
The board of Wema Bank Plc, has disclosed plans to hold an Extra Ordinary General Meeting this October to seek shareholders’ approval for a comprehensive scheme of share capital restructuring in a bid to ensure improve efficiency of its balance sheet.
Specifically, the bank in a notice to the Nigerian Stock Exchange (NSE) signed by Oluwole Ajimisinmi, the company secretary and legal adviser, said the reduction in share capital follows the desire of the board to reward its loyal shareholders who have not received any dividend for several years.
This , it said despite the bank’s return to profit four years ago owing to the backlog of negative retained earnings balance arising from losses and other impaired assets.
Despite the return to profit, it said the bank is precluded from offering dividend to shareholders, just as it restricts the ability and increases the cost of raising new capital.
The holistic capital reduction scheme, the statement assured, “would have no impact to the current holdings of shareholders, though the bank will be creating a capital reduction account to charge off the impaired assets while an equivalent amount will be moved from its share premium account to effectively close the entries.”
Should the shareholders approve the proposal, the bank will apply to the Federal High Court for approval of the scheme.

Unity Capital profit before tax stands at N3.89bn in Q3
United Capital Plc has recorded profit before tax of N3.897 billion at the end of nine months financial year. The report submitted to Nigerian Stock Exchange showed a drop of N65 million compared with N3.962 billion reported in December 31, 2016. The profit for the year also went down from N4.696 billion in December, 2016 to N3.273 billion. The gross earnings grew to N6.238 billion from N5.689 billion achieved at the end 2016 financial year, representing a growth rate of N549 million or 9.65 per cent while total revenue for the period under review went to N6.238 billion from N5.889 billion made at the December last year.
An analysis of of the company result in the nine month period showed that total assets down from N160.692 billion to N151.943 billion while total liabilities also declined to N136.715 billion from N148.455 reported in 2016 financial year. Fees and commission income rose marginally to N1.438 billion from N1.428 billion while net interest margin also moved downward to N2.846 billion from N3.000 billion.
However, as investment income took positive trend, growing to N1.099 billion from N688.237 million made in December, net operating income jumped to N5.476 billion from N5.132 billion. Total expenses for the period under increased to ( N2.341 billion) from (N1.726 billion) for December 2016 financial year. The shareholders funds rose to N15.228 billion from N14.237 billion.
The earnings per share of the company down from 78 kobo to 55kobo at the of September this year.

 

Probe diversions of funds by ex-NEMSA DG – Group
Stories by David Agba with agencies

Following crisis rocking the Nigerian Electricity Management Services Agency (NEMSA), a group under the auspice of the Concern Power Watch, (CPW) has called on President Muhammadu Buhari to investigate the alleged diversion of hundreds of millions of naira by the immediate past Managing Director of NEMSA, Engr. Peter Ewesor.
Speaking to journalists in Abuja at the weekend, the group’s President, Comrade Femi Adesuen, alleged that Ewesor diverted funds amounting to hundreds of millions of naira via Skye Bank Account – EMSL Account No: 1771407417.
Adesuen alleged that the diversion that was done in collaboration with the then president’s Chief of Staff, Mike Oghiadomhe, was for the purpose of funding the re-election of former President Goodluck Jonathan in 2015.
According to the CWP’s president, “Ewesor, connived with the Executive Director, Corporate Services Directorate of NEMSA, Ms. Ikechi Nwosu and moved the agency’s hospital equipment from the agency’s hospital in Enugu to its Abuja hospital, re-awarded same contract to Prime Tech Resources Ltd at the cost of N41 million as if the equipment were newly acquired by the agency. This took place in March 2017.”
The group also alleged that former NEMSA boss had an understanding with a top aide of the Minister of Power, Babatunde Fashola that if re-appointed, he would grant the aide an exclusive privilege of supplying all the transformers needed by the agency.
To cover his alleged atrocities, Engr. Ewesor was alleged to have usurped the duty of the Executive Director Finance by making himself one of the signatories to the agency’s accounts both with Skye Bank and other banks. This contradicted the standard procedures of the agency.
It was reliably learnt that in a bid to escape being exposed, Ewesor has embarked on destroying records that may expose his shady deals. Investigation revealed that he got his loyalists in the agency to destroy every traceable record that may expose his alleged nefarious activities. Such include the reformatting of the agency’s computers and wiping off of all relevant information that may reveal his alleged atrocities while he held sway as the Managing Director.”

 

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