Stock Market report for Tuesday

Diamond Bank Plc

Diamond Bank’s share price climbed by about 4.20 per cent on Tuesday, as investors’ response to the market performance in the first three months of 2012 showed a positive record.

The bank’s score card is in spite of the loss of about N5.158 billion in loan provisions, from the previous N4.521 billion, while profit after tax (PAT) rose 351.16 per cent up during the period ended March 31, 2012.

The first quarter result shows gross earnings at N30.74 billion, up by N10.47 billion, or 51.65 per cent over the N20.27 billion reported in the corresponding period of 2011, while profit before tax stood at N7.481 billion, up by N5.669 billion, or 312.85 per cent from N1.812 billion, and profit after tax climbed N3.775 billion, or 351.16 per cent to N4.85 billion from N1.075 billion.

But, on Tuesday, petroleum products marketing firm, MRS Oil, recommended the payment of 75 kobo as dividend with qualifying date as June 15, with closure of register is billed for between June 18 and 2 ahead the annual general meeting scheduled in Lagos on July 12.

Building materials makers, Ashaka Cement, a subsidiary of French global giant, Lafarge SA Cement in Nigeria, has recommended a dividend of 40 kobo per share from its net profit of N3.572 billion for the year ended December 31, 2011, which is slightly better than the N3.004 billion for the previous year.

Ashaka’s share price fell 42 kobo down, in apparent investor dissatisfaction with the outing with the 2011 result.

However, the basic indicators of the Nigerian Stock Exchange (NSE) closed on a positive note, after blue-chips, Zenith Bank, Guaranty Trust Bank, First Bank and 22 others, including Nestle and Unilever, were on the gainers side, against 23 laggards led by Oando

The All-Share index rose by 199 basis points or 0.96 per cent, while equities’ capitalization climbed N63.109 billion up.

Nestle Nigeria grabbed N18.40; Okomu Oil rose 147 kobo; followed by Mobil Oil with 70 kobo; Zenith Bank’s 60 kobo, helped by the 2011 full year result and the offer of 95 kobo dividend approved for distribution by shareholders on Tuesday in Lagos.

Guaranty Trust Bank, which has offered 110 kobo, gained 59 kobo, while Chemical & Allied Products, 56 kobo; Unilever, 42 kobo; and First Bank, 32 kobo.

On the decliners’ side, Oando was atop with 105 kobo; Cadbury lost 60 kobo as investors complain about the directors’ silence on a dividend payout despite returning to profit. 

Some analysts are however of the opinion that the profit after several years of loses by the company occasioned by its 2006 financial misstatement, may be as part of the ongoing rebuilding efforts of the board and management.

Presco lost 53 kobo; Berger Paints, just like Ashaka dropped 42 kobo; trailed by Forte Oil with 39 kobo.

A total of 262.669 million shares valued at N2.197 billion were crossed by stockbrokers in 4,130 deals, as against the 223.905 million units exchanged on Monday for N1.487 billion in 3,697 deals.

The financial services sector accounted for 222.424 million units of Tuesday’s volume worth N1.389 billion in 2,385 deals, with the banking sub-sector pooling 201.694 million shares exchanged for N1.377 billion in 2,274 deals. Diamond Bank’s 47.03 million shares were traded in 91 deals for N114.436 million; ahead of the 31.217 million units of Zenith Bank worth N392.033 million in 398 deals.

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