The profit after tax of Fidson Healthcare Plc dropped by 88 per cent in the firm’s half-year result for the period ended, June 30, 2016.
According to the data made available to the Nigerian Stock Exchange by the company on Monday, its PAT fell to N39.582m from N324.206m recorded in the prior period.
Its revenue plunged by 35 per cent to closed at N2.61bn from N4.034 for the period under review.
On a broader note, the NSE market capitalisation dropped by N10bn at the close of trading on the Exchange’s floor on Monday after the market recorded gains in 26 stocks.
The NSE capitalisation dropped to N9.489tn from N9.499 recorded on Friday last week, while the NSE All-Share Index closed at 27,629.90 basis points from 27,659.44 basis points.
A total of 378.513 million shares worth N2.268bn exchanged hands in 3,519 deals.
The highest index point recorded in the course of trading was 28,488.56 basis points, while the lowest and average index points were 27,629.90 and 27,659.44 basis points, respectively.
A total of 17 stocks recorded losses of various degrees, while a total of 26 stocks appreciated in value.
Forte Oil Plc, Seplat Petroleum Development Company Limited, Avon Crowncaps and Containers Nigeria Plc, Ikeja Hotel Plc and Continental Reinsurance Plc emerged as the top five losers.
The share price of Forte Oil dropped by N18.99 (9.74 per cent) to close at N175.91 from N194.90, while that of Seplat lost N16.50 (five per cent) to close at N313.50 from N330.
That of Avon Crown depreciated by N0.07 (4.83 per cent) to close at N1.38 from N1.45, while Ikeja Hotel recorded a loss of N0.09 (4.74 per cent) to close at N1.81 from N1.90.
Continental Reinsurance shares also lost N0.05 (4.72 per cent) to close at N1.01 from N1.06.
Other losers were Skye Bank Plc, Law Union and Rock Insurance Plc, Eterna Plc, Dangote Cement Plc, Guinness Nigeria Plc, among others.
Oando Plc, Transnational Corporation of Nigeria Plc, United Capital Plc, Nigerian Breweries Plc and Ecobank Transnational Incorporated Plc were the top five gainers.
Oando’s share price appreciated by N0.51 (9.96 per cent) to close at N5.63 from N5.12, while that of Transcorp recorded a N0.13 (9.63 per cent) gain to close at N1.48 from N1.35.
Other gainers were Custodian and Allied Plc, Honeywell Flour Mill Plc, DN Meyer Nigeria Plc, AxaMnasard Insurance Nigeria Plc, Livestock Feeds Plc, among others.
Financial analysts had said the performance of the capital market this week will be determined by the releases of more half-year results of quoted firms on the NSE, as well as the Monetary Policy Committee meeting scheduled for July 25 and 26, market analysts have said.
Following last week’s extended losses, they said the market could throw up bargains that could steer the coming sessions into gains as a result of both developments.
Bearish sentiments pervaded the Nigerian equities market last week, with the NSE All-Share Index declining in all five trading days of the week.
Following this development, the index slid by 2.91 per cent week-on-week to drag the year-to-date return to -3.43 per cent. While volume traded advanced by 17.47 per cent week-on-week, market turnover declined by 31.79 per cent week-on-week. The market recorded 15 advancers as against 45 decliners.
Skye Bank Plc topped the gainers’ chart in four out of the five trading days of the week, to emerge as the highest gainer, with 41.67 per cent week-on-week price gain.
For future sessions, analysts at Meristem Securities Limited, in the firm’s weekly analysis, said, “We expect an influx of earnings releases in the coming week, and therefore anticipate that investors’ perception about company scorecards, coupled with the outcome of the MPC meeting will dictate market performance in the week.
“The past few years have been trying ones for the committee, as they meet once more at a time when they have to make policy decisions to guide the economy with little to no support from fiscal policy.
“The committee will be faced with a choice of increasing the benchmark interest rate to boost the United States dollar inflows, needed for better liquidity in a flexible foreign exchange market, and the realisation that raising the policy rate in a contracting economy will exert further pressure on output growth.”
According to the analysts, the debate recently oscillates between; what the committee should or will do, as the country has moved past the point when conventional policies would have an immediate impact, even if the pass-through mechanism was instantaneous.
They stressed, “We believe that boosting the dollar liquidity in the forex market is crucial, particularly considering the maturing $4bn forwards over the next two months, however, we opine that raising the monetary Policy Rate would have a detrimental impact on the Nigerian economy, which has most likely fallen into a recession.
“We posit that the MPC, given the available alternatives, will be inclined to tilt more in the direction of stimulating economic growth, in the hopes that a resurgence of the Nigerian economy will help to attract foreign investors in the medium to long term. We believe that this approach charts a more certain, albeit longer path to Foreign Portfolio Investors inflows rather than an immediate reaction, which may not eventually result in foreign funds repatriation, and would possibly only stifle economic growth further.”
In the same vein, the analysts in Vetiva Capital Management Limited, said, “With the MPC meeting scheduled for this week, we anticipate a relatively tepid sentiment across the fixed income market as participants trade cautiously.”
The fixed income market traded mostly bearish this past week as investors reacted to higher June inflation figure (which printed at 16.5 per cent year-on-year, higher than consensus estimate of 16.2 per cent).
Overall, yields in the Treasury bills and bond market rose to 205 basis points and 186bps on average across maturities, respectively.