Oil &Gas: Consumer Goods Sectors Push Equity Market To Negative Territory

Akamanu Jennifer
The equities market last week suffered further losses after some capitalised stocks in the oil and gas and the consumers’ goods sectors, particularly Forte Oil Plc and Nestle Nigeria Plc pushed the sectors to a negative close.

Though activity was muted across all sectors in the market, except for the industrial goods sector that recorded 4.37 increments, the sectors – the oil and gas and the consumer goods – suffered the most, dropping by 5.04 per cent and 5.54 per cent respectively after company like Forte Oil Plc released an unimpressive 2016 financial performance.

Forte Oil Plc’s audited financial report and accounts for the period ended December 31, 2016 showed 23.8 per cent and 50.1 per cent decline in profit before tax and profit after tax respectively.

At the end of the period, the company’s profit before tax fell to N5.34 billion from N7.01 billion in the previous year, while its post-tax profit fell to N2.89 billion from N5.79 billion in 2015 impacted by 155.5 per cent increase in finance cost.

Also, the 19 per cent increase in revenue, was diluted by 20 per cent gallop in cost of sales posted during the period.

Following the development, investors suffered N167 billion losses on their investment as the market capitalisation of all listed equities slumped to N8.892 trillion from N9.059 trillion in the preceding week, thus representing two per cent decline.

Also, the All Share Index, ASI, depreciated by 1.84 per cent to close at N25,802.54 basis points from 26,328.22 basis points.

The banking sector fell by 2.81 per cent, while the insurance sector recorded -2.56 per cent return on the back of 9.02 per cent decline in Continental Reinsurance.

Gainers and Losers

37 equities depreciated in price during the week in contrast to 23 equities appreciated in price.Forte Oil Plc led the declners, dropping by 15.14 per cent to close at N61.00 per share, followed by Neimeth Pharmaceuticals Plc with 15.07 per cent to close at N0.62.

UACN Property Development Co. Plc closed as the third on the top 10 losers table, declining by 13.89 per cent to close at N2.48.

Total Nigeria Plc and Diamond Bank Plc went down by 10.36 per cent and 10.10 per cent to close at N268.00 and N0.89 respectively.

Caverton Offshore Support Group led the gainers, rising by 15.94 per cent to close at N0.80, followed by Lafarge Africa Plc that rose by 9.82 per cent to close at N44.40 per share.

Unity Bank appreciated by 8.11 per cent to close at N0.80; Mobil Oil Nig. Plc went up by 4.32 per cent to close at N275.99, while 7up Bottling Co. Plc chalked up by 3.80 per cent to close at N112.10 per share.

First African local-currency ETF to list in second quarter

Meanwhile, the first African local-currency bond ETF will be launched in the second quarter this year with an initial investment of $25-30 million, according to the fund’s manager Abhimanyu Yadav, head of fixed income and currencies with Mauritius Commercial Bank Investment Management Ltd.

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