Operators Link Equities Rebound To Impressive Dividends, Recovering Oil Price | Independent Newspapers Limited
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Business, Money Market

Operators Link Equities Rebound To Impressive Dividends, Recovering Oil Price

Posted: Mar 8, 2016 at 4:14 am   /   by   /   comments (0)

Some capital market operators on Monday attributed the price rally at the nation’s bourse to impressive earnings released by some companies and the oil price recovery at the international market.

They said in Lagos that results declared by Dangote Cement and Africa Prudential Registrars attracted more investors to the market.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Consulting Ltd., Lagos, said that dividends of N8 and 43k declared, respectively, by Dangote Cement and Africa Prudential Registrars for 2015 financial year boosted activities at the market.

Omordion also attributed the growth to increase in the oil price at the global market, saying that international markets were also up on the strength of recovering oil price.

He said that the market might experience mixed performance this week due to profit taking and investors’ realignment.

According to him, strength of earnings released this week will determine market performance.

Another market operator, Mr Wale Idowu, said that the rebound in equities was due to robust 2015 audited results so far declared by some quoted companies.

Idowu said that the results, which were declared last week, rekindle investors’ confidence in the market.

He, however, said that the market growth might not be sustained given the various investment uncertainties in the country that led to exit of foreign investors.

The All-Share Index rose by 1591.31 points or 6.57 percent to close at 25,820.10 last week compared with 24,228.79 posted in the previous week.

Also, market capitalisation, which opened at N8.336 trillion, grew by N546 billion or 6.55 per cent to N8.882 trillion.

Tiger Brands led the week’s gainers’ table in percentage terms, growing by 30.30 per cent or 40k to close at N1.72 per share.

United Capital followed with a gain of 29.55 per cent or 39k to close at N1.71, while Africa Prudential Registrar improved by 27.73 per cent or 71k to close at N3.27 per share.

On the other hand, Forte Oil topped the losers’ chart, dropping by 14.26 percent or N48.77 to close at N293.23 per share.

FCMB Group trailed with a loss of 10.13 percent or 8k to close at 71k, while Conoil declined by 9.71 percent or N1.78 to close at N16.56 per share.

A total of 1.48 billion shares worth N7.99 billion were traded by investors in 15,743 deals last week against 4.48 billion shares valued at N11.74 billion exchanged in 14,124 deals in the preceding week.

The financial services sector remained the most active with 1.32 billion shares worth N5.59 billion transacted in 9,955 deals.

The Conglomerates followed with 50.809 million shares valued at N108.29 million in 557 deals.

The third place was occupied by the Consumer Goods sector with turnover of 49.66 million shares worth N1.38 million achieved in 2,434 deals.