JULY 28, 2017: NESTLÉ AT RECORD HIGH

At the Nigerian stock exchange, Nigeria's highest priced equity, Nestle Nigeria set new all time high for the market as it gained N47.77 or 5% to close at N1003 per share today July 28 2017.

It had opened at N960 per share, hit a low at N930 then recovered to close above N1000 thus becoming the only equity to cross that mark in the market's recent history.

It did it in style too as usually barely available 1.116m units came on the table and were snapped up in 112 deals (12th placed for the day) worth N1.117bn.

At N1003 per share, the closest priced equity in the market was Seplat Petroleum which was quoted at N488 per share but without any stated price earnings ratio or earnings per share.

On the other hand, Nestle clocked 82.82 PE ratio at the new high with EPS of N12.11.

The closest priced equity with stated PE ratio was Dangote Cement quoted at N235.8 per share by close of today with PE ratio of 19.63 and N12 EPS. Meaning that if current prospects of Dangitey cement were perceived as Nestle Nigeria's was appreciated, they should have close price per share given the historical earnings.

Other equities that had the potential to go close if brokers were as bullish about their current prospects were those with relatively lower prices but with close EPS. The closer and the more bullish, the greater the chances especially when efforts are made to interact and update the market on current developments.

Yes, the PE ratio implies that at current returns, investors in Nestle if they buy now will get their full money back in about 82years. Yes that looks quite a long time too but behold there are higher PE ratios, and some do not even have current ratios.

Higher are the PE ratios of Union Holmes at 238.0; Niger Insurance at 170.6 and International Breweries at 101.91.

Of course, PE ratio is not a cut and dry investment decision making guide because shares that are in demand and scarce could succumb too to supply and demand rules aside from returns potential.

At last, the market daily giddy run was punctuated today as the All shares index closed down 1.02% to 36,864.71 despite the Nestle record gain.

This was as leading equity by capitalisation Dangote Cement dropped by day high N9.48 per share or 3.87% surpassed only in % terms by 6.7% drop in Cadbury Nigeria or by N0.75 per share.

Price gains were paced in % terms by Dangote Sugar up 9.72% or by N0.98 per share then Nestle.

Traded value at N8.137bn was higher than yesterday's superlative N8bn but volume dropped to 525.56m units from 542.8m and deals struck closed down at 5799 from 5939.

Three equities accounted for 52.1% of the higher traded value. Apart from Nestle, GTB and Zenith bank recorded above N1bn each traded value.

Leading value was GTB's N1.89bn involving 3rd ranked 424 deals for 5th highest 46m shares.

Zenith bank ranked 2nd value wise with 577 deals (2nd too) for 4th placed 46.19m units worth N1.22bn.

Lead volume was however, in FBN Holdings with day high 823 deals for 96.86m shares worth N548.6m followed by Diamond bank, down 3.76%, with 5th placed 242 deals for 88.06m units worth N117m.

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more