News Column

Fresh Bargain Appetite Halts Losing Streak On the Exchange

August 29, 2014

Bukky Olajide

THE equities market closed yesterday on a positive note, as Nigerian Stock Exchange[NSE]. All Share Index[ASI] appreciated by 0.58 per cent to close at 41,359.87 basis points, compared with the 0.28 per cent depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 0.07 percent.

Market breadth also closed positive as Premier Breweries led 31 gainers against 20 losers topped by Nnfm at the end of yesterday's session- an unimproved performance when compared with previous outlook.

Market turnover however closed negative as volume traded downwards by 32.12 per cent against 117.25 per cent uptrend recorded in the previous session. Sterling bank , Unity bank and Transcorp were the most active to boost market turnover. Guaranty and Zenithbank topped market value list.

Sectoral Indices, banking sector recorded 1.75 per cent gain to emerge the most supportive sectoral performance among others while industry is the most hit to close with 0.38 per cent loss

Volume Shockers include Unity bank which led the list of active stocks that recorded impressive volume spike at the end of yesterday's session.

Meanwhile, PZ Cussons Nigeria Plc (PZ) recently published its FY-14 results.

The company cut our its revenue revenue growth expectations to 3.2 per cent yoy and two per cent yoy from 6.4 per cent yoy and 9.4 per cent yoy respectively.

This is due to the worsening security challenges in the North Eastern part of the country, which has continued to make business difficult. In their view, sales growth in first will be underpinned by the 2015 election spending.

In the household and personal care (HPC) segment, the company forecasts revenue growth at 2.3 per cent yoy in first quarter, slower than the electrical appliance segment revenue growth forecast offive per cent yoy.

Notably, the electrical appliance segment's revenue advanced by 6.4 per cent yoy and 9.3 per cent yoy in first quarter of 2013 and 2014 respectively (their estimates). "We see rising urbanisation rate and middle class income earners as the growth drivers", said the company.

Importation of raw materials put pressure on gross margin as the sharp decline in PZ's gross margin to 23.5 per cent in the fourth quarter of 2014 from 31.7 per cent in fourth quarter of 2014 amid the year-on-year quarterly improvements over the last three quarters.

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Source: AllAfrica

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