Index Rises 0.12% as Trading Resumes on Positive Note

Trading at nation’s stock market resumed on a positive note yesterday as investors reacted to some improved earnings results reported by companies. The market had slipped into the bear’s territory last week, declining by 0.77 per cent on profit taking among other factors.

But the negative sentiments were reversed yesterday, leading to the Nigerian Stock Exchange (NSE) All-Share Index to appreciate 0.12 per cent and closed at 25,485.17. Buy interest in Unilever Nigeria, United Bank for Africa (UBA) Plc and Stanbic IBTC Holdings Plc supported the positive performance. The three companies last week released their audited results for the year ended December 31, 2016, showing improved bottom-lines.

For instance, Stanbic IBTC’s profit after tax (PAT) jumped by 51 per cent to N28.5 billion, fromN18.9 billion in 2015. UBA grew its The PAT by 21 per cent from N59.6 billion to N72.6 billion, while Unilever’s PAT soared by 157 per cent from N1.19 billion to N3.07 billion in 2016. Besides, the companies recommended dividends for their various shareholders.

Apparently reacting to the improved performance, investors increased demand for the equities at the stock market, leading to growth in their prices. Unilever appreciated by 5.0 per cent, while UBA and Stanbic IBTC garnered 2.0 per cent and 1.6 per cent respectively. In all, 17 stocks advanced compared to 12 stocks that declined.

However, Lafarge Africa Plc, which rode on the back of its 2016 results to gain 13 per cent last week, began this week on bearish note as some investors moved in to lock in part of the gains. As a result, Lafarge Africa went down by 2.7 per cent and contributed to the fall in NSE Industrial Goods Index, which shed 1.1 per cent.

All other sectors closed in the green led by the NSE Consumer Goods Index with 0.5 per cent on the back of gains in SevenUp Bottling Company Plc (+5.3 per cent) and Unilever (+5.0 per cent). In the same vein, the NSE Insurance Index and NSE Banking Index appreciated by 0.2 per cent and 0.1 per cent in that order. The NSE Oil & Gas Index recorded a marginal gain of 0.01 per cent.