The domestic equities market closed trade on a negative note as UACN (-10.0%), UNIONDAC (-9.1%) and TRANSCORP (-8.8%) dragged the All-Share Index down 0.3% to 29,030.93 points. As a result, YTD return moderated to 8.2% while market capitalisation fell ₦41.2bn to ₦14.9tn. Activity level improved as volume and value traded rose 13.1% and 98.1% to 274.5m units and ₦9.1bn respectively. The most active stocks by volume were GUARANTY (75.7m units), MTNN (37.5m units) and UBA (26.9m units) while MTNN (₦4.6bn), GUARANTY (₦2.3bn) and ZENITH (₦507.3m) led by value.
Performance across sectors was mixed as 3 of 6 indices under our coverage lost, save the AFR-ICT index that closed flat. The Insurance index led gainers, up 2.1% following buying interest in CORNERSTONE (+9.3%) and NEM (+9.1%) while the Banking index trailed, up 0.6% due to price appreciation in UNITYBNK (+6.7%) and GUARANTY (+3.0%). On the flip side, the Industrial Goods index led laggards, down 2.1% owing to sell-offs in WAPCO (-7.1%) and BUACEMENT (-2.3%). Similarly, the Oil & Gas and Consumer Goods indices fell 0.5% and 4bps respectively on the back of losses in OANDO (-3.7%), PZ (-3.4%) and HONEYFLOUR (-0.9%).
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.5x from the 0.6x recorded in the previous trading session as 10 stocks advanced relative to 21 decliners. The best performers were CORNERSTONE (+9.3%), NEM (+9.1%) and CHIPLC (+8.3%) while UACN (-10.0%), UNIONDAC (-9.1%) and TRANSCORP (-8.8%) led the laggards. Despite opportunities for bargain hunting in the equities market, we expect the market to close the week on a bearish note. The Stock Exchange and others will begin the implementation of the Finance Act 2019. As a result an increment in Value Added Tax (“VAT”) charged on brokerage commission and other statutory fees on transactions carried out via the Nigerian Stock Exchange (“NSE”) from 5.0% to 7.5%, effective 1st February 2020 will apply. Going Forward, a 7.5% VAT shall be charged on the following Fees: Brokerage Commission; Securities and Exchange Commission (SEC);Nigerian Stock Exchange (NSE); Central Securities Clearing System (CSCS)
Today’s Corporate Actions
Highlights of Some Corporate Earnings Disclosures Announced Today:
NCR NIGERIA PLC (Unaudited FY:2019): Revenue down 8.4% Y-o-Y to ₦6.1bn; profit after tax (PAT) slumped into the negative region to settle at ₦118.4m.
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC (Unaudited Q1:2020): Revenue up 167.1% Y-o-Y to ₦606.5m; PAT recovered from 2018 losses to settle at ₦82.7m.
MCNICHOLS PLC (Unaudited FY:2019): Revenue fell 17.0% Y-o-Y to ₦679.1m; PAT declined 52.6% Y-o-Y to ₦18.6m.
UNIVERSITY PRESS PLC (Unaudited Q3:2020): Revenue down 15.0% Y-o-Y to ₦1.9bn; PAT declined 19.7% to ₦211.4m.
LINKAGE ASSURANCE PLC (Unaudited FY:2019): Revenue up 20.9% Y-o-Y to ₦6.5bn; PAT recovered from 2018 losses to settle at ₦930.2m.
SCOA NIGERIA PLC (Unaudited FY:2019): Revenue up 57.8% Y-o-Y to ₦3.9bn; PAT recovered from 2018 losses to settle at ₦115.1m.
BETA GLASS PLC (Unaudited FY:2019): Revenue up 11.7% Y-o-Y to ₦29.4bn while PAT rose 8.6% Y-o-Y to ₦5.5bn.
NEM INSURANCE PLC (Unaudited FY:2019): Revenue grew 30.8% Y-o-Y to ₦19.7bn; PAT surged 74.0% Y-o-Y to ₦3.5bn.
GUINNESS NIGERIA PLC (Unaudited FY:2019): Revenue grew 0.8% Y-o-Y to ₦68.3bn; PAT fell 49.0% Y-o-Y to ₦1.3bn.
UACN OF NIGERIA PLC (Unaudited FY:2019): Revenue grew 9.7% Y-o-Y to ₦84.0bn; PAT rose 4.8% Y-o-Y to ₦8.1bn.
FLOURMILLS NIGERIA PLC (Unaudited Q3:2020): Revenue grew 5.7% Y-o-Y to ₦423.5bn; PAT rose 3.4% Y-o-Y to ₦8.2bn.
PORTLAND PAINTS & PRODUCTS NIGERIA PLC (Unaudited FY:2019): Revenue fell 8.5% Y-o-Y to ₦2.6bn; PAT declined 58.0% Y-o-Y to ₦86.8m.
UPDC REAL ESTATE INVESTMENT TRUST PLC (Unaudited FY:2019): Revenue fell 18.6% Y-o-Y to ₦2.5bn; PAT declined 27.4% Y-o-Y to ₦1.9bn.
IKEJA HOTEL PLC (Unaudited FY:2019): Revenue fell 4.6% Y-o-Y to ₦12.7bn; PAT declined 4.6% Y-o-Y to ₦1.1bn.
CAPITAL HOTEL PLC (Unaudited FY:2019): Revenue fell 13.2% Y-o-Y to ₦5.2bn; PAT rose 10.1% Y-o-Y to ₦418.5m.
Market Statistics for Thursday, 30th January 2020
| Market Cap (N’bn) | 14,953.6 |
| Market Cap (US$’bn) | 41.5 |
| NSE All-Share Index | 29,030.93 |
| Daily Performance % | (0.3) |
| WTD Performance % | (2.0) |
| MTD Performance % | 8.2 |
| QTD Performance % | 8.2 |
| YTD Performance % | 8.2 |
| Daily Volume (Million) | 274.5 |
| Daily Value (N’bn) | 9.1 |
| Daily Value (US$’m) | 25.3 |
Source: Afrinvest
