Stocks rebound on the Exchange
THE domestic equity market closed in the green zone as the Nigerian Stock Exchange [NSE] All Share Index [ASI] closed higher, signalling a break from the sell-off recorded in the last six trading days.
However, analysts observed that investors remain largely reluctant to invest in domestic equities.
While the domestic economic weakness is likely to drag into 2016, they believe sentiment for the market will remain bearish in the interim.
The banking and oil and gas sectors declined the most. The consumer goods sector, the only sector to close positive provided the tailwinds for the yesterday’s positive performance.
Thus, the ASI gained 17bps on the day to close at 29,446.95, bringing year-to-date returns to 15.03 per cent. The day’s performance was predominantly driven by Nigerian Breweries (6.76 per cent, ₦144.16), Flourmill (3.42 per cent, ₦21.78), and Nestle (0.72 per cent, ₦836).
Meanwhile, a review of second quarter of 2015 financial filing defaulters list published in the NSE X-Compliance Report as at 26th October, 2015 has revealed that 18 firms defaulted in filing second quarter of 2015 results as at the stated date.
Regular quarterly filings of financials by quoted firm help convey to various investors the financial position of such firm they have found worthy to invest their capital. This periodic financial statement continues to assure them of the healthy position of the firm as well as the capability of the management.
Companies’ interim financial accounts are to be filed 30 days after the relevant quarter and sent to all shareholders or published in at least two national daily newspapers with evidence of publication submitted to The Exchange.
As at 23rd Oct, 2015, available statistics on the NSE website shows that 85 per cent of Q1 2015 financials were filed with The Exchange while 88 per cent of such filing was achieved in second quarter of 2015.
Companies from the financial services sector dominated the list with seven firms as companies from the insurance sub-sector constitute about 57 per cent of the number.
Industrial goods followed with three firms as construction/real estate and services sectors follow with two each while agriculture, oil and gas, healthcare and ICT sectors have one each.
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