Investors to re-evaluate earnings positions as deadline for Q2 financial results nears
July 28, 2019642 views0 comments
As the deadline for filing quarterly results on the Nigerian Stock Exchange (NSE) approaches, investors, in anticipation of a flurry of financial reports this week, are being envisaged to begin a re-evaluation of their positions.
Financial performance of banking companies as well as Dangote Cement will drive market activity, market sources told business a.m at the weekend.
Specifically, companies such as Zenith Bank, despite sustained sell-off, is considered to earn a strong buy as the lender is poised to deliver an interim dividend payment to shareholders following its earnings release.
Also, the expected Q2 2019 financials of Access Bank upon consolidation with Diamond Bank which stands to reveal the reality of the merger, has created anticipation among shareholders.
The stock trades at (N6.55) a marked discount to peers, informing a BUY recommendation, from analysts at Lead Securities & Investment Ltd. They however emphasize cautious optimism, factoring possible earning shock.
Also to propel market performance this week, here are highlights of earnings already filed with the NSE.
OANDO H1’19: Revenue: N315.9bn vs N297.3bn (+6.1%)
TOTAL H1’19: Revenue: N150.8bn Vs N156.3bn (-3.5); Profit After Tax: N7.2bn Vs N8.5 (-15.6%)
OKOMU H1’19: Revenue: N8.6bn Vs N12.9bn (+33.8%); Profit After Tax: N0.1bn Vs N5.7 (-97.7%)
LAFARGE H1’19: Revenue: N101.6bn Vs N100.4bn (+1.1%); Profit After Tax: N2.5bn Vs N12.9 (-80.5%)
CCNN H1’19: Revenue: N32.1bn Vs N12.1bn (+166%); Profit After Tax: N20.7bn Vs N2.8 (+648%)
UNILEVER H1’19: Revenue: N42.7bn Vs N48.1bn (-11.2%); Profit After Tax: N3.5bn Vs N5.7bn (+38.6%)
MTNN H1’19: Revenue: $566.9mn Vs $505.7mn (+12.1%); Profit After Tax: $98.9mn Vs $73.4 (+34.8%). Interim Dividend: N2.95 – Closure of Register: 9 – 12 Aug 2019; Payment Date: 16 Aug 2019.
MOBIL H1’19: Revenue: N92.8bn Vs N85.9bn (+8.0%); Profit After Tax: N4.2bn Vs N5.4 (+23.4%)
FLOURMILLS Q1’20: Revenue: N134.7bn Vs N133.0bn (+1.3%); Profit After Tax: N4.2bn Vs N3.6 (-16.7%)
AIRTELAFRI Q1’20: Revenue: $795.9bn Vs N744.5bn (+10.2%); Profit After Tax: $132.bn Vs $150.6 (-12.2%)
NESTLE H1’19: Revenue: N70.9bn Vs N67.8bn (+4.5%); Profit After Tax: N13.4bn Vs N12.9bn (+3.9%)
The NSE finished the trading week ended July 26,recording losses in four of the five trading sessions.
Tuesday witnessed a strong uptick with the market advancing by 1.26 percent, leaping the ASI over 28,000 points, spurred by strong gains in Dangcem and Nestle. However, a sharp retraction returned the broad index below the psychological threshold. Consequently, the All-Share Index (ASI) closed unchanged at 27,918.59 points, while YTD performance stands at -11.17 percent.
The week was replete with earnings releases across listed stocks, which also influenced trading patterns, although insufficient in driving trading activity which remained lukewarm, as value traded for the week printed at N11.4 billion, 15 percent below the previous week.