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NSE 30 earnings per share hits highest level in four years

by OLALEKAN IPELE & ABISINUOLA DAVID-OLUSA

May 21, 2018 | 1:19 am
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The broad equity market represented by the 30 most capitalized and liquid stocks on the Nigerian Stock Exchange (NSE) have seen Earning per share (EPS) hit the highest level since 2014, according to data analysed by BusinessDay.
The NSE 30 index with a market capitalization of N12.62 trillion as at year end 2017 representing 96.3 per cent of total market capitalization on the Nigerian bourse earned N3.04 in 2017 up 76 percent from the N1.73 earned in 2016 and +23 percent from N2.46 per share earned in 2014.
Earnings for the 30 largest listed firms had been falling since 2014 as companies got hit by a recession and falling oil prices.
EPS for the NSE-30 fell 27.2 percent between 2014 and 2015 to N1.93, and fell further in 2016 by 11.1 percent to N1.73.
The top 30 firms had cumulative net income of N1.165 trillion in 2017, up from N662 billion in 2016.
Dangote Cement with net income of N204.2 billion, Zenith Bank (N177.9 billion), Guaranty Trust Bank (N170.4 billion), Seplat (N96.4 billion) and UBA (N78.5 billion) were the top five firms in terms of earnings.
The NSE all share index is up 5.83 percent year to date.
Going forward analysts at Investment One Financial Services however expect the market to remain volatile in the absence of positive news flow.
“We however highlight the potential for the market to gain as the recent downtrend presents a decent entry opportunity into some of our quality names,” Investment One said.

 

OLALEKAN IPELE & ABISINUOLA DAVID-OLUSA


by OLALEKAN IPELE & ABISINUOLA DAVID-OLUSA

May 21, 2018 | 1:19 am
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