Looking at the market situation and performance since the last general election especially at the start of the year, it may surprise you that out of more than 12 companies that has released it earnings so far in the year only two have five days positive earnings reaction while others recorded negative reaction days as the stock’s price decline within the period under consideration. The table below shows the stocks that have gained the most on their earnings reaction days so far in the year.
Securities | Released Date | Period | 5-Days % |
PZ | 26-Jan-16 | Q2 | Flat |
International Brew | 29-Jan-16 | Q3 | 29.60 |
Guniness | 29-Jan-16 | Q2 | 11.22 |
Flourmills | 2-Feb-16 | Q3 | 0.11 |
Vitafoam | 6-Jan-16 | Q4 | -2.96 |
Honeywell Flour | 28-Jan-16 | Q3 | -3.95 |
FO | 28-Jan-16 | Q4 | -4.81 |
RedStar Express | 27-Jan-16 | Q3 | -5.00 |
University Press | 28-Jan-16 | Q3 | -5.00 |
7up | 29-Jan-16 | Q3 | -9.85 |
FCMB | 29-Jan-16 | Q3 | -13.59 |
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The average stock that released its earnings during the peak of 2015 earnings season has rallied 0.61 percent on its earnings reaction for five trading days following its report date for the full year earnings while stock has declined on the average of 0.06 percent on market reaction to first quarter earnings reported so far in the market. Below are lists of selected stocks that released their Q4 of 2014 with their performance as per market reaction to their reports for the days under consideration.
As revealed on the table, Nacho ranks first with a huge gain of 40.63 percent on its earnings report for five trading sessions, Vitafoam ranks second with a gain of 36.96 percent, followed by Learn Africa 28.57 percent, Total Nigeria Plc, Berger Paints and Trans-Nationwide. It’s noticeable on the list that Total Nigeria is the only blue chip company among the top five.
Securities | Released Date Q4 | 5-Days % |
Nahco | 3/27/2015 | 40.63 |
Vitafoam | 4/30/2015 | 36.96 |
Leran Africa | 3/31/2015 | 28.57 |
Total Nigeria | 3/26/2015 | 25.01 |
Berger Paints | 3/31/2015 | 24.75 |
Trans-nationwide | 3/26/2015 | 21.70 |
GSK | 4/1/2015 | 21.51 |
Fidelity Bank | 3/31/2015 | 20.35 |
Dangote Cement | 3/26/2015 | 20.25 |
Unilever | 3/26/2015 | 19.53 |
Livestock Feeds | 3/25/2015 | 16.98 |
Fidson | 3/26/2015 | 15.86 |
Zenith Bank | 3/5/2015 | 14.47 |
GTBank | 3/5/2015 | 13.48 |
Sterling Bank | 3/25/2015 | 8.72 |
Diamond Bank | 3/30/2015 | 8.37 |
Mobil Oil | 3/24/2015 | 8.24 |
FcmB | 3/23/2015 | 7.25 |
CCNN | 3/31/2015 | 7.20 |
Caverton | 3/27/2015 | 6.67 |
UBA | 3/26/2015 | 6.01 |
Seplat | 3/31/2015 | 5.53 |
Ashaka Cement | 3/31/2015 | 4.95 |
CAP | 3/30/2015 | 4.88 |
Stanbic IBTC | 3/31/2015 | 4.60 |
FBNH | 4/7/2015 | 3.15 |
Nigeria Breweries | 2/12/2015 | 2.60 |
Cadbury | 3/27/2015 | 1.96 |
UACN | 4/2/2015 | 1.33 |
Dangote Suagr | 4/17/2015 | 1.11 |
Custidian &Allied | 3/31/2015 | 0.25 |
Nestle Nigeria | 2/25/2015 | -1.09 |
Forte Oil | 2/19/2015 | -2.66 |
Access Bank | 3/13/2015 | -4.59 |
Lafarge Africa | 3/13/2015 | -4.91 |
Africa Prudential | 3/10/2015 | -8.33 |
Royal Exchange | 4/30/2015 | -9.09 |
United Capital | 3/12/2015 | -9.30 |
UACN Property | 4/7/2015 | -9.42 |
Transcorp | 4/7/2015 | -9.43 |
Okomu Oil | 4/1/2015 | -9.65 |
NPF Micro Finance | 4/22/2015 | 14.65 |
Let the tables above guide you this period that prices are low on the strength of liquidity and confidence problem as you position for earnings to know how to set your target if the reports expected are positive or negative when the market react to it. It is important to set target as every investment is against expectation, if not met exit on time to cut loss and protect your capital.
