Q3 Reports Boost Stock Market as NSEASI UP 0.11%

Posted by African Examiner Business News Thursday, October 24th, 2013

By Frank Omalapeh, Lagos

Market breadth closed positive on Wednesday as CONOIL leads the 26 gainers against the 25 losers led by COURTVILLE at end of Wednesday’s session, an impressive performance when compared with previous outlook.

NSE ASI up +0.11% to close at 37,408.56 basis points, compared with the positive trend of +0.28% it recorded previously bringing Its Year-to-Date (YTD) return to settle at +33.23%. Similarly, the market capitalization of the listed equities rose by N13bn or 0.1 per cent to close at N11.952tn on Wednesday, up from N11.939tn recorded on Tuesday.

However, the value of transactions decreased 2.42. CONOIL, CAP and TRANSCORP led the gainers list with 10.23%, 10.22 and 5.88% respectively while Courtville, NPFMCRFBK and MANSARD top the losers list, declining by 4.76%, 4.71% and 4.67% in that order.

Sectoral Indices

The NSE-30 Index closed at 1,758.35 basis points, representing a rise of 0.03 per cent or 0.6 basis points from the 1,757.75 recorded on Tuesday, while the NSE’s Consumer Goods Index rose marginally by 0.17 per cent on Tuesday or 1.84 basis points to close at 1,076.19 points.

The value booster of the of the equities market on Wednesday was Oil & Gas Index which appreciates by 2.9 per cent or 6.66 basis points to close at 236.01 points

However, the NSE Insurance Index and the NSE Banking Index fell by -1.29 per to close at 402.61 basis points and 139.17 basis points, respectively.

In the sub-sector, investors exchanged 154.357 million shares, valued at N2.135bn in 1,610 transactions.

Volume in the sub-sector was driven by trading in the shares of United Bank for Africa Plc, Unity Bank Plc. and Zenith Bank Plc.

Top losers/gainers

Conoil Plc. led the price gainers’ chart, rising by 10.23 per cent or N4.14 to close at N44.62 per share.

CAP Plc. followed on the chart with a gain of NGN10.22 per cent or NGN3.97 to close at NGN42.82 per share, while Transnational Corporation of Nigeria Plc up 5.88 per cent or 10 kobo to close at NGN1.80 per share.

Corporate Earnings Update Q3 2013

As companies begin to release their Q3 results to the Nigerians Stock Exchange, investors are beginning to take position for the last quarter of the year for maximum profit. These results are a value booster to the current rally in the equities market.

NB, UPDC and CAPOIL released Q3 numbers with respective turnover and earnings growth as 5.27%, 29.70%, 46.70% and 6.19% 142.63%, and -56.96% in that order.

CCNN, in its Q3 ’13 earnings report, records positive growth of +5.8% in its Turnover with positive growth of +25% in its bottom-line

UAC-PROP, in its Q3 ’13 earnings report, records positive growth of +29.7% in its Turnover with positive growth of +142.6% in its bottom-line.

CAP Plc. Turnover expands but Earnings contract on rising production costs. Q3 2013 numbers reveal strengthened revenues as the premium paints producer consolidated its leadership position by 15.26% y-o-y top-line growth. Costs of sales grew well ahead of revenues as the company’s cost efficiency dwindled with cost-to-sales at 50.11% as against 47.73% in Q3:2012.

While operating expenses remained relatively moderate at c.21% OPEX margin, the company’s higher production costs slowed earnings growth down to 6.34% y-o-y vs. 7.10% y-o-y growth in Q2:2013.