160410: Julius Berger & Oando corporate benefits boost market growth as rebound continues



The equities market at the end of this week eventually closed on a positive note notwithstanding the bearish trend recorded in two trading days of the week. The market at the end of the week recorded appreciations in three of the five trading days.
The sell pressure recorded in the two trading days of the week could be attributed to investors’ besieging the market for profit taking following the six trading days appreciation in a row recorded to Monday 12th April, 2010.
The profit taking cut across all the sectors in the market; the most hit of the profit taking spree were Banking, Building Materials and Food & Beverages sectors of the market as these sector seemed to have recorded tremendous appreciations in the prior trading days.
Meanwhile, the Petroleum Marketing stocks posted resilience stance on a relative note as the bearish trend of the two trading days could not hold much on the sector. Oando Plc returns of N3.00 dividend per share and 1 for 2 bonus declared during the week contributed to the positive performance recorded in the sector as investors continued to jostle for the stocks to benefit from the returns declared or the much anticipated capital appreciation it would trigger. The rally on the sector continued even to the last trading day of the week.
Beta Glass Plc and Julius Berger Plc also rewarded their numerous investors in the week with 36k dividend per share and N2.40 dividend per share respectively. While investors continue to chase after the stocks of other companies that declared returns and their prices maintain upward trend as a result, it seems investors are not keen about the returns declared by Beta Glass Plc as the price of the stocks continued its southward trend.
Guaranty Trust Bank Plc a week after releasing its common year end results following after Zenith Bank Plc and United Bank for Africa Plc hit the market this week with its 2010 first quarter result. The performance indices in the results showed improvement when compared with the preceding year comparable period figures. The Bank is setting pace with this stance while some banks are yet to declare their 2009 common year end results.
We are of the opinion that it would augur well for the market and the investing public if all the quoted companies can borrow leaf from the Guaranty Trust Bank Plc stance on timely results declarations, instead of unnecessary delay that keeps investors in suspense.
The market in the last two trading days of the week has shown that the path to recovery is real, and if the recovery is sustained, the gap to the peak recorded in March 2008 will be closing gradually. At the close of trading session this week, ASI recorded +34.39% years to date appreciation and was -10.74% below the ASI figures recorded at the end of January 2nd, 2009 trading session.
The All-Share Index in the week under review closed with +1.04% appreciations to close at 27,988.71 compared with +5.65% weekly growths recorded in the previous week to close at 27,701.11. The sell pressures that took toll on the market between Tuesday and Wednesday leading to decline by -2.41% within the period contributed to the decline in the weekly performance growth when compared with the previous week performance.
The market capitalisation recorded N90.803 billion (US$646.649 billion) appreciation to close at N6.796 trillion (US$45.403 billion) compared with N358.066 billion (US$2.392 billion) appreciation to close at N6.699 trillion (US$44.756 billion) recorded in the preceding week.
The total volume traded in the week stood at 3.710 billion units of shares valued at N25.729 billion (US$171.871 million) compared with 2.573 billion units valued at N22.108 billion (US$147.679 million) exchanged in 41,119 deals in the previous week. The volume transaction in the week when compared with the previous week data increased by +44.19% compared with +13.85% volume growth recorded at the end of the previous week trading session. The weekly value also inched up by +16.38% compared +11.66% value growth recorded last week.
Resort Savings and Loans Plc topped the transactions volume chart for the week with 231.480 million units traded in 56 deals. The stock price eventually closed at the previous closed price of the preceding week. AIICO Insurance Plc followed with 214.147 million units traded in 5,884 deals and eventually recorded price appreciation by +5.13%. Only two banks made the top ten trades list for the week.
The volume traded in the top ten most traded stocks for the week represented 39.41% of the entire market volume transactions and their total value accounted for 30.14% of the market value.
Insurance sector displaced the Banking sector in the volume ranking in the week with 1.207 billion units valued at N1.117 billion exchanged in 10,205 deals. The volume traded in the sector accounted for 32.61% of the entire market.
The sector’s volume transaction was boosted by trading in the shares of AIICO Insurance Plc, Mutual Benefits Assurance Plc, Lasaco Insurance Plc and Staco Insurance Plc. The transactions in the shares of the four insurance companies alone closed at 616.143 million units, accounting for +51.03% of the total sector’s transactions.
Banking sector followed the chart with 1.042 billion units valued at N11.719 billion exchanged in 22,230 deals. The sector’s volume for the week was boosted by transactions in the shares of Zenith Bank Plc, First Bank Plc and Guaranty Trust Bank Plc. The total volume traded in the three banks closed at 374.905 million units, representing +35.98% of the entire banking sector’s volume traded.
The NSE All-Share Index opened the week with +0.83% appreciations to close at 27,929.86. The appreciation movement was however halted at the end of trading session of Tuesday with -1.26% to close at 27,578.34. ASI depreciation continued till Wednesday with -1.17% depreciations to close at 27,256.61.There was a rebound to positive on Thursday with +0.31% appreciations to close at 27,339.10. Market performance growth continued till end of Friday with +2.38% to close at 27,988.71
The appreciation in the market this week closed at Sixty-Four (64) compared with Ninety (90) gainers recorded last week. Mobil Nigeria Plc led the gainers’ chart with +27.61%. Other gainers in the top ten appreciation class are outlined below.
On the losers’ table, Fifty-Three (53) decliners were recorded in the week, higher than twenty-seven (27) losers recorded last week. Zenith Bank Plc topped the losers chart for the week with -18.68%. Other losers in the top ten class are outlined below.
Corporate Declarations for the week
Avon Crown Nigeria Plc audited report for the year ended 31st December, 2009: The Company recorded +34.77% growths in turnover to close at N6.06 billion. Profit after tax however dropped by -40.54% to N125.72 million.
Oando Plc fourth quarter results for the period ended 31st December, 2009:   The Oil Company reported +21.01% rise in after tax profit to N10.10 billion while the company’s turnover for the period dropped by -0.75% to N336.86 billion. Fixed assets in the period grew by +46.50% even as its net assets increased by +15.83% to N53.32 billion.
Guaranty Trust Bank Plc first quarter results for the period ended 31st March, 2010: 11.05% growth in turnover to N26.75 billion for the last 3 months even as profit after tax for the period rose 2.97% to N8.85 billion. Investments in working capital were 1.22% higher at N143.64 billion.
Julius Berger Nigeria Plc fourth quarter report for the period ended 31st December, 2009: The Company reported a +31.36% rise in fourth Q4 2009 turnover to N150.36 billion while its after tax profit increased 31.58% to N3.30 billion. Its property plants and equipments grew a staggering 70.40% to N46.69 billion while stock levels closed 25.32 per cent higher to N15.22 billion and working capital was depleted 93.91 per cent to negative N31.96 billion.
The Company proposed a N2.40 dividend per share to its shareholders whose funds rose 17.84 per cent to N7.83 billion.
research@proshareng.com, 00234-1-7624131, April 16, 2010; 1640hrs
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