Investors Lose N50.84bn as NGXASI Declines Further by 0.21%; Overnight Rate Contracts by 5.34% to Close at 9.83%; BDC Depreciates to 820
- EQUITIES MARKET
1.1 NGX – Listed Equities
Nigerian Equities Market closed negative as the key market indicator declined by 93.35bps amid negative market breadth
The NGX All-Share Index declined by 0.21% to close at 43,745.73 basis points as against 0.17% loss recorded previously to close at 43,839.08 basis points at the end of the last trading session. In Naira terms, the NGX Market CAP records N50.84bn loss.
YTD, the NGXASI Stands at +2.41%
The total volume traded advanced by 7.32% to close at 172.87m, valued at N4.01bn and traded in 4,110 deals. ACCESSCORP was the most traded stock by volume with 24.68m units traded while SEPLAT was also the most traded stock by value which is put at N2.53bn
Sectoral performance was broadly negative as five (5) NGX sector index closed northward, ten (10) closed southward while three (3) closed flat. The NGX-IND index advanced by 1.33% to top the gainers chart while the Oil and Gas Index dipped by 4.31% to top the losers’ chart.
Dangote index closed flat at 116.06 basis points and the Elumelu index declined by 0.42% to close at 105.58 basis points.
At the close of trading, market recorded 13 gainers to 19 losers and 72 unchanged. NAHCO topped the list of gainers while JBERGER topped the list of losers.
Thus, market breadth closed negative as the Market Breadth Index (MBI) is put at -0.08x.
Volume and Value Contribution
ACCESSCORP led the volume’s chart with 14.28% contribution and closely followed by STERLNBANK and TRANSCORP
SEPLAT tops the value’s chart with 63.12% contribution and closely followed by ACCESSCORP and ZENITHBANK
NGX Earnings Summary
No Financial statement was released on the NGX Exchange today.
NGX Corporate News
No Corporate News was released on the NGX Exchange today
1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index declined by 0.21% to close at 720.91 basis points as against the 0.04% gain recorded previously to close at 722.43 basis points
The total volume traded declined by 82.69% to close at 0.019m units valued at N0.69m and traded in 4 deals.
At the close of trading, NASD OTC market recorded zero (0) gainer(s) to one (1) loser(s)
NASD Earnings Summary
No Financial statement was released on the NASD OTC Exchange today.
NASD Corporate News
No Corporate News was released on the NASD OTC Exchange today.
1.3 Global Indices
On the global scene, the Hong Kong Hang Seng Index leads the top five gainers with 5.23% gain while the Malaysia KLSE Index tops the top four losers with 0.99% loss as of 4pm Nigerian Time
1.4 African Indices
Similarly, on the African scene, the South Africa Industrial 25 Index tops the top five gainers with 1.52% gain while the South Africa Financial 15 Index tops the top five losers with 0.95% loss as of 4pm Nigerian Time
- BONDS AND FIXED INCOME MARKETS
2.1 Debt Market Size
The FMDQ Debt Market Size was not available as at the time of writing this report.
2.2 Overnight and Open Repo (OPR)
The Overnight lending rate contracted by 5.34% to close at 9.83% while the Open Repo (OPR) rate also contracted by 5.17% to close at 9.33%
- COMMODITIES MARKET
3.1 AFEX Indices
The AFEX ACI closed flat at 455.71 while the AFEX AEI also closed flat at 202.48
3.2 AFEX Commodity Prices
Paddy Rice grew by 9.27% to top the gainers chart while Cocoa declined by 7.97% to top the losers chart.
3.3 Global Commodity Prices
Gold recorded 0.71% gain while Silver also advanced by 2.77% as of 11:29 NY time
In the energy market, Brent advanced by 1.95% while WTI also advanced by 2.17% as of 10:31 AM Central Daylight Time (CDT)
- CURRENCY/ FX MARKET
The naira depreciated by 0.68% at the I&E FX Window to close at N446/USD while the NAFEX rate depreciated by 0.08% to close at N443/USD
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- Revenue grew by 11.34% from N47.47bn to N52.85bn.
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- Profit after tax stood at N2.75bn
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F23: Guinness Nigeria Reports Strong Performance with an 11% Increase in Revenue for Q1 F23
F23: Guinness Nigeria Continues on Growth Trajectory with Strong Performance for Its First Quarter F’23.
- Double-digit revenue growth across key categories
- Revenue Increased by 11%
- Gross Profit Increased by 20%
Guinness Nigeria, a subsidiary of Diageo Plc, and a leading total beverage alcohol company in Nigeria has posted a revenue of N52.8 billion for its first quarter period ended 30 September 2022.
The unaudited result released to the Nigerian Exchange Group (NGX) showed a 20% increase in gross profit in the period under review, with double-digit revenue growth across all key categories. The increase has been achieved despite the impact of the challenging business environment with double-digit inflation and a heightened operating cost.
The Managing Director/CEO at Guinness Nigeria Plc, Mr Baker Magunda said the result is the outcome of a dedicated workforce. “The performance of Guinness Nigeria in Q1 2023 showed that the business delivered growth despite the challenging external environment. We have continued to deliver on our promise of growth, through strategic innovation, great partnerships, and futuristic thinking despite the challenges faced”, he said.
He added that “revenue grew by 11% to N52.8 billion, driven by resilient consumer demand and improved outlet coverage, as well as rollover benefits of price increases taken across all categories in 2021. Double-digit revenue growth was delivered across all key categories driven by our strategic focus brands, Malta Guinness and Guinness, as well as strong growth in locally manufactured spirits and the ready-to-serve category.”
The result further showed that gross profit was up 20% as revenue grew ahead of the cost of sales. Cost of sales increased by 7%; largely due to inflationary pressures and the Naira devaluation impacting imported materials.
“We have continued to invest behind our focus brands and categories which has given rise to an increase in marketing investment, up 48%, to support our growth priorities and spend ahead of peak season to secure performance during the festive period in Q2,” Magunda said.
Projecting into the next quarter, Magunda revealed that “irrespective of the continued challenging operating environment with high-level inflation and pressured consumer income spending, the business will continue to focus on strategic and innovative ways in making our business seamless thereby leading to the satisfaction of our consumers. We remain committed to strategic growth ensuring we deliver on our ambition to be the best performing, most trusted, and most respected consumer products company in Nigeria”.
The Chair of the Board of Guinness Nigeria Plc, Dr. Omobola Johnson assured that “the Board will continue to support the Management in its efforts to sustain global best practices aimed at consistently delivering business growth for stakeholders. “We remain confident that the strategy is comprehensive and robust, and that we are making the right investments in the company to ensure our long-term competitiveness” she said.
Net financing costs increased by 233% due to a foreign exchange revaluation impact with the devaluation of the official exchange rate of the Naira from N418/$ to N439/$. However, investments of excess Naira cash in fixed deposits with banks at higher rates provided some mitigation. Profit before tax was reduced to N4.0BN, a 32% decline vs. the same period last year. Lower corporate tax was driven by the reduction in operating profit and increased net finance costs.