Consumer good sustains highest negative returns as February ends

The headwinds bedeviling the Nigerian economy and the industrial sector demonstrated its spiral effects as the consumer goods sector of the Nigerian stock exchange (NSE) sustains highest negatives returns.
The sector on the last full trading week in February, recorded -16.89 per cent loss on investment so far in 2017, the sector opened the year also in negative returns at
The NSE consumer goods index opened the 2015 financial year at 746.19 and 712.65 , closing the 2016 financial year at -4.49 per cent.
The NSE consumer goods index as at the close of trade on Friday February 25th 2017 has a total market capitalization of N2.07 trillion.
The consumer index is made up of 15 companies all of which their performances have been impacted by prevailing economic headwinds and forex challenges, hampering their expected positive performances and returns on shareholders investments.
Companies t6hat constitute the index are 7Up Bottling company which closed the week at N106.50 er share,, Cadbury that closed at N9.00 per share and Champion Breweries which closed the week at N2.35 per share.
Others that constitute the sector also include, Dangote flour , closed the week at N6.06 per share, Nigerian Flour Mills (NFM) which closed the week at 17.80 per share and Guinness Nigeria which its equity price close the week lower at N68.00 per share.
Honeywell flour close the week at N1.00 per share, International Breweries at N15.70 per share, Nascon closed the week lower at N7.00 per share.

Nestle Nigeria closed the week at N570 per share, PZ Cussons closed the week lower at N13.99 per share, Unilever closed lower at N28.50 per share, while Vitafoam a component of the NSE Consumer goods index closed lower at N1.72 per share, having declined by 75 per cent year to date.
Nestlé’s second consecutive quarterly loss, in its third quarter 2016 ended September 30th, showed that Profit after tax declined by 97 per cent year in the third quarter.
The company’s foreign exchange losses continued to mount pressure on earnings in Q3’16, leading to a second quarterly loss after tax of ₦51.1 million , while its Q2 2016 result showed loss after tax (LAT) of ₦6.1 billion.
Analysts expect that the trend will prevail in the sectors’ 2016 audited year result which have started rolling, of which that of Nigerian breweries recently released showed reduction in earnings reflecting impact of macro and micro economic headwinds.