The market closed on a negative note yesterday as investors booked profit following days of growth. The Nigerian Stock Exchange (NSE) All-Share Index depreciated by 0.15 per cent to close at 36,776.60 compared with a growth of 1.14 per cent the previous day.
Expectations that companies would soon begin to release impressive results for the third quarter ended September 2017, has been leading to more demand for stocks in the past few days.
The development kept the market in the bulls’ territory for the last four trading days. However, the bears returned yesterday as profit taking set in. Consequently, the index closed lower. However, the market ended with 19 price losers and 19 price gainers. But the depreciation recorded in the share prices of Diamond Bank, FBN Holdings, Lafarge Africa, Nigerian Breweries, and Access Bank was mainly responsible for the decline recorded in the index.
At the end of trading, investors staked N3.26 billion on 353.19 million shares, up from N3.0 billion invested the previous day. The most actively traded traded sectors were: Financial Services (309.59 million shares), Consumer Goods (23.20 million shares), and Services (8.28 million shares), while the three most actively traded stocks were: Diamond Bank (215.76 million shares), Fidelity Bank (15 million shares) and FCMB Group (14.59 million shares).
Meanwhile, more companies have informed the NSE of their meeting to consider their nine months results. For instance, Zenith Bank Plc said its board will soon meet for that purpose. Investors are expected impressive performance from the bank given the half year results.
Zenith Bank Plc announced an interim dividend of N7.8 billion for the H1half year ended June 30, 2017, which translated to 25 kobo per share.
The bank . recorded gross earnings of N380.4 billion, up by 77 per cent from N214.8 billion posted in the corresponding period of 2016.Net interest income stood at N138.962 billion, as against N127 billion in 2016. However, impairment charges increased by 196 per cent from N14.2 billion to N42 billion.
But the bank got a boost from trading and other operating income. While trading income, realised foreign exchange, jumped from negative N864 million to positive N65.318 billion, other operating income similarly soared from N3.567 billion to N15.112 billion in 2017.
Consequently, Zenith Bank Plc ended the period with profit before tax of N92.183 billion, compared with N53.905 billion in 2016. PAT rose from N35.465 billion to N75.5.317 billion. Hence, the directors recommended an interim dividend of 25 kobo per share, just like what was paid in the corresponding period of 2016. Market analysts said given the high level of profitability, the bank would pay a final dividend higher than the N1.77 paid at the end of 2016.
