The value of listed equities on the Nigerian Stock Exchange (NSE) appreciated by N600bn last week as equity buyers increased demand at the bourse. Week-on-week (wow), the benchmark indicator of Nigerian stock market rose by 6.52 percent or 1,798.67 points as equities sustained positive momentum and resisted the contagion from volatile oil market. Most analysts had said that the closure of Retail Dutch Auction System (RDAS) by the Central Bank of Nigeria (CBN) would have a negative effect on equities.
In two trading days after the disclosure of the new directive by CBN, the stock market didn’t witness sell-off by foreign investors who account for reasonable percentage of equities transaction at the Exchange. Also, most analysts had expected the stock market to close negative in line with their expectation of profit-taking in the last trading session of last week. Amid their views, at the Nigerian Stock Exchange, the value of listed equities which opened last week at N9.204trn appreciated to N9.804trn; while the NSE All Share Index (ASI) which stood at 27,585.26 points rose to 29,383.93points at the close of deals Friday.
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In the preceding trading day, the NSE ASI stood at 29,282.04 points while the value of listed equities was N9.77trn. Brent crude oil rose toward $61 a barrel on Friday as expectations of falling U.S. rig count numbers outweighed concerns about oversupply. Brent crude futures for April were up 56 cents at $60.77 by 8:15a.m last Friday having hit an intraweek low of $57.80 in the preceding day. Seplat Petroleum Development Company plc led on last Friday’s gainers table after its share price rose by N8.73, from N436.8 to N445.53; followed by Presco plc which rose by N2.98, from N29.4 to N32.38. Ashaka Cement plc gained N1.76, from N17.22 to N18.98; Okomu Oil Palm plc rallied by N1.69, from N33.89 to N35.58; while Flour Mills Nigeria plc appreciated by N1.48, from N30 to N31.48. Only last Friday, equity traders exchanged 277.752million units valued at N6.568bn in 3,714 deals, compared with the preceding trading day when in 4,385 deals equity traders exchanged 564.275million units valued at N6.087bn. Cadbury Nigeria plc led the pack of losers after shedding N4.18, from N42.98 to N38.8; followed by Forte Oil plc which lost N1.6, from N222 to N220.4. Unilever Nigeria plc lost N1.44, from N34 to N32.56; Dangote Cement plc lost N1, from N153.2 to N152.2; while Champion Breweries plc dipped by N0.35, from N5.35 to N5. Forte Oil plc released its consolidated statement of comprehensive income for the year ended December 31, 2014.
The indigenous petroleum marketing company posted a decline of 8 percent in annual profit before tax (PBT) to N6bn against N6.52bn in the corresponding financial year to December 31, 2013. The company’s revenue rose by 32.88 per- cent, to N170.127bn from N128.027bn in 2013. Profit after Tax (PAT) declined by 10.95 per- cent, to N4.456bn against N5.004bn in 2013. Its basic earnings per share (EPS) dropped by 49.07 percent, to N2.20, from N4.32. The company would pay a dividend of N2.5kobo per share com- pared with N4 it paid the preceding financial year – as well as a bonus share for every 5 units held.
