Zenith gross earnings grew 5.5% as NSE sustains positive performance

Zenith Bank Plc,Unaudited Q1:2020 Result released on the floor of the Nigerian Stock Exchange showed the bank’s Gross Earnings grew 5.5 per cent Y-o-Y to ₦168.6 billion from ₦158.1 billion in Q1:2019 while profit after tax PAT, declined by 1.3 per cent Y-o-Y to ₦5.8 billion from ₦5.9 billion in Q1:2019. Meanwhile trading at the Nigerian Stock Exchange closed in the green as the All-Share Index rose 62bps to 22,868.40 points due to gains in MTNN (+2.4%), FBNH (+3.4%) and WAPCO (+2.7%). Consequently, YTD loss eased to -14.8% while market capitalisation increased ₦73.2bn to ₦11.9tn. Activity level was mixed as volume traded advanced 4.0% to 277.3m units while value traded declined 7.4% to ₦2.5bn. The most active stocks by volume were FBNH (56.6m units), UBA (52.8m units) and LASACO (23.9m units) while GUARANTY (₦470.4m), DANGCEM (₦374.4m) and ZENITH (₦322.1m) led the value chart.  

Across sectors, performance was bullish performance as 4 of 6 indices under our coverage closed positive. Buying interest in MTNN (+2.4%) and ARDOVA (+9.9%) drove the AFR-ICT and Oil & Gas indices up 1.3% and 0.4% respectively. Trailing, the Consumer and Industrial Goods indices advanced 0.4% and 0.3% respectively due to price appreciation in INTBREW (+4.4%) and WAPCO (+2.7%). Similarly, gains in ACCESS (+1.6%) and FBNH (+3.4%) drove the Banking index 0.2% higher. Conversely, the Insurance index declined 0.2% due to selloffs in CORNERSTONE (-6.8%).

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.2x from the 1.7x recorded in the previous trading session as 14 stocks advanced relative to 12 decliners. The best performers were COURTVILLE (+10.0%), VITAFOAM (+10.0%) and ARDOVA (+9.9%) while ETERNA (-9.6%), UPL (-7.6%) and LASACO (-7.1%) led the losers. We expect more corporate earnings releases to shape the direction of the market for the rest of the week.

Seplat Petroleum Development Plc (Unaudited Q1:2020 Result): Revenue fell 13.3% Y-o-Y to ₦42.4bn from ₦48.9bn in Q1:2019 while PAT declined by 445.5% Y-o-Y to -₦34.6bn from ₦10.0bn in Q1:2019.

Market Statistics for Wednesday, 29th April 2020