Stock investors record biggest weekly loss in Forte, Neimeth, UACN Property, others

In the trading week to February 3, 2017, investors recorded biggest value loss in the shares of Forte Oil Plc, Neimeth International Pharmaceuticals Plc, UACN Property Development Company Plc, Total Nigeria Plc, and Diamond Bank Plc.

Other stocks that investors lost value include Nestle Nigeria Plc, Wema Bank Plc, Continental Reinsurance Plc, Custodian And Allied Plc, and UAC of Nigeria Plc.

Evidenced in a negative start to this week trading, the perceived lack of confidence on near-term outlook of the Nigerian economy has kept many stock buyers away from the bourse as the market returns remain in the red. However, analysts see this negative trend changing soon if some positive results are released, particularly the tier-1 banks like Zenith Bank Plc, GT Bank Plc, Access Bank Plc and UBA Plc.

Only twenty-three (23) equities appreciated in price last week, lower than twenty-nine (29) equities in the preceding week.

Thirty-seven (37) equities depreciated in price, higher than thirty (30) equities in the preceding week, while one hundred and fifteen (115) equities remained unchanged, lower than one hundred and sixteen (116) equities recorded in the preceding trading week.

Investors in Forte Oil Plc got the biggest hit after losing N10.88 in just one week, from a week open level of N71.88 to N61. The Nigerian Stock Exchange (NSE) published the audited financial year 2016 results of Forte Oil Plc which showed group Profit Before Taxation (PBT) of N5.34billion, down from N7.012billion in the preceding year 2015.

Though in the Financial Year ended December 2016, Forte Oil Plc group revenue rose to N148.61 billion against N124.62 billion in 2015; the group after tax profit stood at N2.890billion from N5.794billion.

Also, stockholders of Neimeth Plc shares lost 11 kobo, from week open level of 73 kobo to 62kobo; while those holding UACN Property Development Company Plc shares lost 40kobo last week, from N2.88 to N2.48. Investors in the shares of Total Nigeria Plc lost N30.96 last week after its share price dropped from a week open highs of N298.96 to N268; those that bought the shares of Diamond Bank Plc lost 10kobo last week from 99kobo to 89kobo. Stock investors in Nestle Foods Nigeria Plc lost N70 last week, as the share price dropped from N750 to N680. Wema Bank Plc share price also lost 5kobo from 55kobo to 50kobo. The holders of Continental Reinsurance Plc shares were also affected as the equity price lost 11kobo from week open level of N1.22 to N1.11. In addition, holders of Custodian And Allied Plc shares lost 27 kobo, from N3.60 to N3.33; while UAC of Nigeria Plc lost N1.21, from N16.41 to N15.20.

The Nigerian Stock Exchange (NSE) All-Share Index (ASI) depreciated last week by 2 percent to 25,802.54 points from 26,328.22 points; while market cap lost 1.84 percent from N9.059 trillion to N8.892 trillion, indicating value loss of N167billion. Similarly, all other Indices finished lower during the review week with the exception of the NSE Premium Index and NSE Industrial Goods Indices that appreciated by 0.15% and 4.37% respectively, while the NSE ASeM Index closed flat.

On a positive note, investors in the shares of Caverton Offshore Support Group Plc gained 11kobo, from last week open level of 69kobo to 80kobo; Lafarge Africa Plc also advanced last week from N40.43 to N44.40, adding N3.97; Unity Bank Plc gained 6kobo, from 74kobo to 80kobo; while investors in Mobil Oil Nigeria Plc recorded N11.43 gain from week open level of N264.56 to N275.99. The shares of 7-UP Bottling Company Plc had risen from N108 to N112.10 last week and added N4.10; United Capital Plc gained 11kobo last week from N3.44 to N3.55; while the shares of May & Baker Nigeria Plc gained 3kobo, from 97kobo to N1.

Eterna Plc share price rose by 10kobo, from last week open level of N3.48 to N3.58; Sterling Bank Plc had also gained 2kobo, from 73kobo to 75kobo, while investors in Guinness Nigeria Plc gained N1.60 last week from N64.90 to N66.50.

Research analysts at SCM Capital Limited expect sideways trading in the market this week, “given the lack of impressive corporate earnings released so far to spur interest from investors.”

“From a valuation standpoint, the equities market seems to be attractive, however, expectation of weak earnings performance may temper rally this week. Thus, we expect a mixed to bearish sentiment as investors assume a cautious stance”, said United Capital research analysts.

Iheanyi Nwachukwu