Don't Miss


Home   >   Business   >   Industries   >   Energy   >   Oil, industrial goods stocks worst in Q1

Oil, industrial goods stocks worst in Q1

By on May 8, 2016

Stocks listed under the oil and gas and industrial goods category fell the most in the first quarter of 2016, data from the Nigerian Stock Exchange revealed.

This was followed by those of the consumer goods sector.

The NSE oil and gas index fell by 10.04 per cent while the NSE industrial goods index also declined by 5.97 per cent. The NSE consumer goods index closed at – 0.72 per cent.

However, the NSE banking and insurance indices appreciated by 9.20 and 4.47 per cent, respectively.

Some of the oil and gas stocks quoted on the floor of the NSE are Japaul Oil and Maritime Services Plc, Oando Plc, Conoil Plc, Eterna Plc, Forte Oil Plc, Mobil Oil Nigeria Plc, MRS Oil Nigeria Plc, Total Nigeria Plc and Seplat Petroleum Development Company Limited, among others.

Stocks on the industrial goods category are Ashaka Cement Plc, Berger Paints Plc, CAP Plc, Cement Company of Northern Nigeria Plc, Lafarge Africa Plc, Cutix Plc and Beta Glass Company Plc, among others.

The consumer goods category includes: beverage (brewers/distillers); beverage (non-alcoholic); food products; food products (diversified); household durables; and personal/household products.

Operating in this category are firms like Champion Breweries Plc; Guinness Nigeria Plc; International Breweries Plc; Jos International Breweries Plc; Nigerian Breweries Plc; 7-UP Bottling Company Plc; Dangote Sugar Refineries Plc; Flour Mills Nigeria Plc; Honeywell Flour Mill Plc; Nascon Allied Industries Plc; and Tiger Branded Consumer Goods Plc.

Other firms in the list are Cadbury Nigeria Plc, Nestle Nigeria Plc, Vitafoam Nigeria Plc, Vono Products Plc, PZ Cussons Nigeria Plc and Unilever Nigeria Plc.

Overall, the NSE All-Share Index depreciated 0.96 per cent; NSE Main Board Index fell by 1.60 per cent; the NSE 30 Index also fell by 0.94 per cent; and NSE:Lotus II Index depreciated by 5.98 per cent.

Investors in the country’s capital market (equity category) lost over N1.053tn in Q1 of 2016.

Investors had also made huge losses in the Nigerian equities market last year as the market capitalisation (equities only) of the NSE shed a total of N2.354tn between December 2014 and December 2015.

Commenting on the falling market trend, the NSE Chief Executive Officer, Mr. Oscar Onyema, had said, “Among emerging markets, recession has materialised in Brazil and Russia, and the trend is likely to continue amid weakening oil and other commodity prices. The Nigerian stock market had already lost $30bn since July 2014.

“In sub-Saharan Africa, while the recent performance of Nigeria and South Africa, has been lacklustre, the overall region has weathered the commodity slump better than Latin America and elsewhere, with growth slated at 4.3 per cent in 2016, up from 3.8 per cent in 2015.

“This growth is expected to be supported by the moderate recovery in the global economy, and growth in low-income developing countries which compared to 2015 are projected to grow by one more percentage point to 5.8 per cent in 2016.”

Onyema said uncertainty and volatility dominated the forecast for 2016 and beyond as Nigeria struggles with commodity price shocks and the resultant impact on the naira.

 

[Punch]