Investors wealth increase by N239bn

Investment in the nation’s equity market last week closed in a negative trend, shedding N239 billion. Specifi cally, market capitalisation of listed equities declined by 1.60 per cent to N14.753 trillion from N14.992 trillion traded the previous week. Also, The Nigerian Stock Exchange All Share Index declined by 663.77 basis points to 40841.14 from 41504.51 points, Similarly, all other indices finished lower during the week as NSE Corporate Governance Index fell by 20.42 basis points to 1638.24, NSE Premium Index depreciated by 42.99 to 2,907.24, The NSE Main Board index dropped by 15.10 to 1779.20, NSE ASeM Index decreased by 9.81 to 978.72, NSE 30 index down by 27.80 to 1848.47, NSE Banking fell by 6.90 to 513.67 points, NSE Insurance index went down by 0.11 to 150.98, NSE Consumer goods index dropped by 10.53 to 967.61 points, NSE Oil and Gas fell by 9.60 to 337.31 points, NSE Lotus II 38.14 to 2660.85, NSE Industrial Goods Index 45.92 to 2146.20 and NSE Pension Index decreased by 12.70 to 1571.86 points.
Transactions for the week lasted for four working days as Federal Government declared Monday as public holiday for Easter Celebration. Investors traded a turnover of 1.765 billion shares worth N26.562 billion in 20,265 deals in contrast to a total of 2.328 billion shares valued at N28.927 billion that exchanged hands last week in 25,530 deals. The Financial Services Industry led the activity chart with 1.468 billion shares valued at N18.707 billion traded in 12,850 deals; thus contributing 83.18 per cent and 70.43 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 127.882 million shares worth N623.871 million in 971 deals.
The third place was occupied by Consumer Goods with a turnover of 69.868 million shares worth N6.189 billion in 2,930 deals. Trading in the top three equities namely – Zenith International Bank Plc, Access Bank Plc and United Bank for Africa Plc accounted for 543.758 million shares worth N9.739 billion in 3,533 deals, contributing 30.81 per cent and 36.66 per cent to the total equity turnover volume and value respectively. A Review of the transactions for the week showed that 19 equities appreciated in price lower than 40 AIICO Insurance has released financial scorecards for financial year ended December 31, 2017, showing a profit after tax of N1.283 billion. The result showed that the profit down by 87 per cent compared with N10.893 billion reported in the preceding year, bringing other comprehensive profit to N1.122 billion from N10.893 billion in the preceding year. The company posted profit before tax of N3.04 billion against N11.835 billion recorded in the preceding year, representing a drop of 74 per cent. Total comprehensive profit for the year come to N2.405 billion which was 467 per cent better than the previous year own which stood at N655.065 billion, representing earnings per share of 18 kobo from N1.47 each.
The directors of the company have proposed a dividend payment of 5 kobo per share, as against previous year’s two kobo. The dividend is payable to shareholders whose names appear in the register of member as at the close of business on Monday, May 18, 2018, which is the qualification date.
Closure of register is from May 21 to 23, while the dividend will be paid on May 25, 2018, subject to approval at the annual general meeting the day before. Gross premium written for the period increased by N5.033 billion n or 19 per cent to N32.097 billion from N27.064 billion while gross premium income fell to N21.291 billion from N30.029 billion, representing a decline of N8.737 billion or 29 per cent An analysis of the company result showed that there is a slight rise in reinsurance expenses to N3.79 billion, as against the previous years of N3.341billion, leaving net premium income dropping by N9.186 billion or 34 per cent to N17.5 billiob, as against the N26.687 billion recorded in the preceding year.
The net claim expenses rose from N13.096 billion to N20.774 billion, a N7.677 billion or 59 per cent growth. . The board of Eterna Plc has presented its audited financials result for the year ended December 31, 2017, showing growth of 61.88 per cent. The result submitted at the Nigerian Stock Exchange showed that the company revenue for the period rose by 61.88 per cent to N173.03 billion from N106.887 billion reported in the preceding year.
The cost of sales increased to N166.692 billion a from the previous year’s of N98.319 billion, representing a growth of 69.54 per cent with material cost accounting for N166.282 billiion from N97.801 billion in the comparative period. The delivery cost, went to N410.746 million from N517.767 million reported in 2016; resulting in gross profit of N6.337 billion, a 26.04 per cent drop from prior year’s N8.568 billion. A breakdown of the revenue showed that oil trading , which is the bulk importation and sales directly to customers facilities or off shore distribution of white products, baseoils, bitumen, low pour fuel oil as well as lifting and sales of crude oil) fetched the bulk of N110.835 billion, as against the N48.274 billion in 2016; followed by the N56.214 billion from retail and industrial, compared to N54.026 billion in the preceding year; while lubricants and chemicals accounted for N5.979 billion, up from N4.586 billion in the corresponding period of 2016.
Trading was also the biggest contributor to the cost of sales at N110.003 billion ; followed by N52.214bn from retail and industrial; while N4.203 billion; leaving gross profit of N3.729 billion from retail and industrial; with N1.776 billion from lubricants and chemicals. Selling and distribution expenses rose to N73.431billion from N49.506 billion, helped by the N67.29 billion in marketing and sales commission, which rose from N48.449 billion; and sampling and analysis expenses that gulped N6.141 billion from N1.057 billion; just as general administrative expenses climbed from N2.094 billion to N3.1 billion, boosted by the N802.038m million compared to N259,000 .With no derivative loss for the period, as against N948.225 million reported in the year 2016, operating profit fell from N5.828 billion to N3.206 billion, representing a 44.98 per cent drop.
Finance income surged by 36.94 per cent to N142.457 million from N104.029 million while finance cost was contained by 84.83 per cent to N535.882 million , up from N3.531billion. The finance cost comprised N334.037 million, from the previous N288.426 million; even as interest and other financial charges, (the interest charges on various short-term loans, overdrafts and trade finances) dropped to N174.115 million from N3.224 billion Profit before tax for the period went up by 17.2 per cent to N2.812 billion from N2.4 billion in the corresponding full year of 2016, while a 12.09 per cent drop in tax from N922.613 million to N811.039 million left profit after tax at N2.001 billion, which was 35.49 per cent better than the previous year of N1.477 billion Retail and industrial contributed N1.178 billion to the net profit for the year, from N1.079 billion in 2016; followed by N561.054 million from lubricants and chemicals, compared with N233.736 milliin, and N262.776 million from trading, as against N164.715 million in the preceding year.
Total comprehensive income for the year stood at N1.98 billion up from N1.469 billiion, translating to Earnings Per Share of N1.54, as against the previous N1.13 each. The directors of Eterna recommended a dividend of 40 kobo, up from 30 kobo in 2016, for approval by the shareholders at the annual general meeting coming up in June 19, 2018. Payment date is fixed for June 20, to those whose names appear on the register of members when it closes from May 24 to 28 of the previous week. The result further showed that 53 listed companies depreciated in price, against 40 firms of the previous week, while 99 equities remained unchanged higher than 91 equities recorded in the preceding week. An analysis of the transactions showed that Lasaco Assurance Plc led gainers table for the week growing by 21.21 per cent or N0.07 kobo to close at N0.40 kobo, May &Baker Nigeria followed with a gain of N14.29 per cent or N0 .40 kobo to close at N3.20 kobo, Law Union and Rock insurance Plc gained 12.33 per cent or N0.09 kobo to close at N0.84 kobo.
Other companies appreciated in price during the week were UNIC Diversifi ed Holdings Plc 11.11 per cent, AIICO Insurance Plc 9 68 per cent, African Alliance Insurance Company Plc 9.09 per cent, Unilever Nigeria Plc 8.73 per cent, Access Bank Plc8.60 per cent, Caverton Off shore Support GRP Plc 4.49 per cent, Prestige Assurance Plc 4.44 per cent. On the contrary, Japaul Oil and Maritime Services Plc topped losers chart, dropping by 23.73 per cent or N0.14 kobo to close at N0 45 kobo, Unity Bank Plc trailed with a loss of 17. 21 or N0.21 kobo to N1.01 kobo, Jaiz Bank Plc down by 16.05 per cent or N0.13 kobo to close at N0.68 kobo. Other companies depreciated in price were Glaxosmith Kline Consumer Nigeria Plc 14.71 per cent, Wema Bank Plc 14.14 per cent, Dangote Flour Mills Plc 13.48 per cent, Sovereign Trust Insurance Plc 13.04 per cent, Unity Kapital Assurance Plc 11.54 per cent, Sterling Bank Plc 9.71 per cent International Breweries Plc 9.65 per cent.
On the contrary, Japaul Oil and Maritime Services Plc topped losers chart, dropping by 23.73 per cent or N0.14 kobo to close at N0 45 kobo, Unity Bank Plc trailed with a loss of 17. 21 or N0.21 kobo to N1.01 kobo, Jaiz Bank Plc down by 16.05 per cent or N0.13 kobo to close at N0.68 kobo. Other companies depreciated in price were Glaxosmith Kline Consumer Nigeria Plc 14.71 per cent, Wema Bank Plc 14.14 per cent, Dangote Flour Mills Plc 13.48 per cent, Sovereign Trust Insurance Plc 13.04 per cent, Unity Kapital Assurance Plc 11.54 per cent, Sterling Bank Plc 9.71 per cent International Breweries Plc 9.65 per cent. Also traded during the week were a total of 125,282 units of Exchange Traded Products (ETPs) valued at N2.835 million executed in 11 deals, compared with a total of 15,293 units valued at N254,840.00 that was transacted last week in 16 deals.
A total of 4,457 units of Federal Government Bonds valued at N4.247 million were traded this week in 13 deals, compared with a total of 21,583 units valued at N22.868 million transacted last week in 16 deals.