Unity Bank, NNFM, others led share price losers in August

As investors’ sentiment trading ended August, Unity Bank Plc and Northern Flour Mills Plc (NNFM) were the top share price losers in the month under review, findings by Nigerian NewsDirect has revealed.

Listed companies last month witnessed profit-taking by especially foreign investors on the heels of indistinct economy policies by the President Muhammadu Buhari’s administration, weak corporate earnings.

Macroeconomic strains, characterized by a weak naira, fall in oil prices, huge energy costs and continued pressure on consumer wallets has combined to hit on companies earnings and share price decline.

For example, the share price of Unity Bank dropped by nearly 30 per cent from N2 it opened in August to N1.41 it closed while that of Northern Nigeria Flour Mills recorded a decline of nearly 29 per cent to N10.47 from N14.72 it opened for trading at the beginning of August.

Investors had reacted to the sack of erstwhile Managing Director of Unity Bank Plc, Mr. Henry Semeniteri, on the alleged abuse of office.

However, despite impressive corporate earnings in the first six month of 2015, the Unity Bank share price dropped the most among the listed Deposit Money Banks (DBMs) followed by United Bank For Africa Plc that lost 20.6 per cent or N0.86 from N4.17 to N3.31 per share.

On its part, NNFM for the past six years has been grappling with slow sales, impacting negatively on its share price. The Flour milling company for the half year ended June 30, 2015 recorded a net loss of N78 million in June 2015 from N131.98 million recorded in June 2014 while revenue significantly dropped by 89per cent from N3 billion in June 2014 to N357.9 million in June 2015.

E-Tranzact International Plc share price also made the list of top losers in August after dropping by 28.3 per cent from N2.58 to N1.02, followed by R. T. BRICOE (NIG.) Plc, was down by 28.2 per cent from N0.71 to N0.51.

Further losers according to our correspondent investigation include Ikeja Hotel that decline by 23 per cent to N2.84 from N3.69 and Red Star Express Plc that moved from N4.93 to N3.80, representing a decline of 22.9 per cent.

The share price of listed multinational companies were on decline performance in August with the likes of Cadbury Nigeria Plc and Nestle Nigeria Plc  dropping by 18.5 per cent and 1.2 per cent to close at N28.56 and N840 respectively.

Surprising, Forte Oil top the gainers chat with 32.6 per cent or N62 from N190 to N252. Other gainers are Dangote Sugar Refinery Plc 20.5 per cent; Skye Bank 20.1 per cent; Unilever Nigeria Plc 11.1 per cent and Evans Medical Plc with 14.3 per cent price appreciation in August.

Market analysts over the years have advised investors to often think of investing on a long term basis in order to gain price appreciation and possible returns on their investment through dividend or bonus payment.

They are optimistic about share price recovery once the present administration appoints ministries and roll out its economy blueprints.

The capital market this year has been a weaker side following the uncertainty building up to the general elections and severe monetary policies on the side of Central Bank of Nigeria (CBN).