Stock Market Gains 6.5% in May on  MTN Listing  

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Goddy Egene

The Nigerian equities recorded a growth of 6.5 per cent in May, compared with a decline of 6.06 posted in April. 

The market, which had been bearish for the most part of year, was heading for another negative close in May, before the listing of MTN Nigeria Communications Plc came to the rescue.

Prior to the listing of MTN on May 16, the market had recorded a month-to-date decline of 2.9 per cent as the Nigerian Stock Exchange (NSE) All-Share Index fell to 28,286.08, while market capitalisation stood at N10.627 trillion, as against N29,159.74 and N10.96 trillion at the beginning of the month.

However, the listing of the telco supported by gains recorded by Dangote Cement Plc, boosted the market to close the month on a positive note.   Specifically, the NSE All-Share Index rose to close the month at 31,069.37 last Friday, while market capitalisation ended at N13.685trillion. Last week accounted for 0.61 per cent of the gain posted for the month. The 6.5 per cent gain, has moderated the year-to-date decline to 1.15 per cent.

An analysis of sectoral performance showed that all five sectors tracked appreciated led by the NSE Banking Index with 3.94 per cent. The NSE Insurance Index followed with 3.28 per cent, while NSE Oil & Gas Index gained 2.14 per cent. The NSE Consumer Index rose 1.31 per cent, while NSE Industrial Goods Index chalked up 1.30 per cent.

NSE Launches Sustainability Report

Another positive development in the market last week was NSE’s launch of ‘Facts behind the sustainability report(FBSR)’ in its quest to continually champion sustainable practices in the African capital markets. 

Styled after the NSE’s flagship ‘Facts behind the listing’ and ‘Facts behind the figures’ event series, the FBSR was designed to further promote the adoption of Environmental, Social and Governance (ESG) practices, reporting, and disclosure and encourage responsible long-term approaches to investment. It provides a platform for listed companies to address stakeholders with in-depth analysis of their sustainability initiatives, as well as spotlight stakeholder engagements, materiality, standardisation and overall disclosures.

Dangote Cement Plc (DCP) presented at the maiden edition of the FBSR. Commenting on the launch of the FBSR, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, said: “Better ESG reporting is key to strengthening capital markets and achieving a sustainable global economy. The exchange is strategically positioned to influence the adoption of globally recognised sustainability standards by Nigerian businesses and we continue to highlight the importance of sustainable business practices in delivering value to our listed companies and investing public to support economic growth.

“We welcome the Executive Management of DCP   for the maiden edition of FBSR to brief the investing community on details of their first ever stand-alone sustainability report.  It is our belief that this giant step taken by DCP will encourage other listed companies, especially those on the Premium Board, to come for their FBSR at The Exchange.

“This will provide them the platform to showcase their efforts in sustainability and corporate governance as well as address investors’ requirements on ESG issues.”

Presenting its sustainability report, DCP said it aimed to make the culture of sustainability a business imperative through its 7-Pillar approach to sustainability, called “The Dangote Way”.

The Group Managing Director, DCPPlc,  Joseph Makoju said: “We have identified and are leveraging sustainability to drive regulatory compliance, proactive risk management and building trust and goodwill in the countries, markets and communities where we operate.”

He said with major operations in three locations in Nigeria and across 14 African countries, DCP is enhancing its positive impact on the economy, environment and society through an integrated approach that mainstreams sustainability across the entire business. This process includes publishing its maiden Global Reporting Initiative (GRI)-Standards compliant sustainability report.

 He added that DCP is also committed to aligning its operations with the group-wide sustainability vision, driven by its 7-Sustainability Pillars, through extensive engagements with internal and external stakeholders.

“The 2018 DCP sustainability report is structured according to these Pillars and covers the financial and non-financial performance in four countries, namely Nigeria, Ethiopia, Senegal and South Africa.  By aligning with the 7 Pillars(institutional, cultural, operational and environmental, economic, social, financial), the company  ensures that every aspect of its business is run in line with global sustainability principles; thereby embedding sustainability – beyond issues of risk management and compliance – in its day-to-day business operations,” he said.

Also speaking, the Group Managing Director, Dangote Industries Limited, Olakunle Alake said: “At Dangote Group, the vision of the business from the outset is to create value for all stakeholders and positively impact and transform the economies where we operate.

“This is what we call ‘The Dangote Way’. If our experiences in the last three decades are anything to go by, we can say with utmost confidence that this sustainable business model has been a win-win. Our people and economy-centric approach to business has no doubt been the fact behind the great success that the Dangote business story has become, and the anchor on which our continued growth, expansion and longevity is anchored.”

Market turnover

Meanwhile, a total turnover of 1.082 billion shares worth N18.111 billion in 16,400 deals were traded this week by investors in contrast to a total of 1.698 billion shares valued at N57.895 billion that exchanged hands last week in 24,328 deals.  The Financial Services Industry led the activity chart with 809.990 million shares valued at N8.495 billion traded in 8,969 deals, thus contributing 74.8 per cent and 46.9 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 69.705 million shares worth N5.411 billion in 1,754deals. The third place was Healthcare Industry with a turnover of 45.971 million shares worth N14.262 million in 139 deals.    Trading in the top three equities namely, United Bank for Africa Plc, Access Bank Plc and Zenith Bank Plc accounted for 351.014 million shares worth N3.737 billion in 4,088 deals, contributing 32.4 per cent and 20.6 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 290,130 units of Exchange Traded Products (ETPs) valued at N3.935 million executed in 16 deals compared with a total of 7,832 units valued at N48,890.00 transacted the previous week in six deals.

A total of 1,057 units of Federal Government Bonds valued at N1.060 million were traded last week in seven deals compared with a total of 1,389 units valued at N1.440 million transacted two weeks ago in 14 deals.

Price Gainers and Losers

A look at the price movement chart showed that 35 equities appreciated in price during the week, higher than 30 in the previous week, while 24 equities depreciated in price, lower than 40 equities of the previous week. Chams Plc led the price gainers with 15.1 per cent, trailed by Sterling Bank Plc with 11.1 per cent. Ecobank Transnational Incorporated gained 10.9 per cent. AXAMansard Insurance Plc chalked up 10 per cent, just as Learn Africa Plc and Neimeth International Pharmaceuticals Plc garnered 9.8 per cent apiece.

Other top price gainers included: Livestock Feeds Plc, Unity Bank Plc (9.2 per cent each), Law Union & Rock Insurance Plc and Courteville Business Solutions Plc (9.0 per cent).

Conversely, Berger Paints Nigeria Plc led the price losers with 9.5 per cent, trailed by R.T Briscoe Nigeria Plc with 9.3 per cent. Eterna Plc shed 8.5 per cent. CAP Plc went down by 8.5 per cent, just as Champion Breweries Plc and Fidelity Bank Plc lost 8.1 per cent and 7.1 per cent in that order.

Other top price losers included: Jaiz Bank Plc (6.1 per cent); Veritas Kapital Assurance Plc,PZ Cussons Nigeria Plc(4.7 per cent)and Oando Plc (4.4 per cent).

 

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