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Stock Market

Why these two stocks posted their best gains this year

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The week ended March 4th 2016 marked the beginning of the earnings season as results of companies started to trickle in. Nigerian stocks have experienced volatility in the past few weeks with very little available to improve investors appetite.

However, as results begun to trickle in investors appetite increased and the bulls soon found their way to stocks with sound fundamentals and good prospects to pay dividends. Two of the 7 stocks that recorded double digit growths are Africa Prudential and United Capital Plc.

Africa Prudentials Plc a company into registrar’s business saw released its full year results reporting profitability increase of 18% year on year. The company also declared a dividend per share of 43 kobo per share. The dividend declared represented a dividend yield of about 16.7% at the time the result was released sending investors in a frenzy that popped the share price by 28% by the end of the week. The share price is obviously on the rise and still has room for an upside.

United Capital also gained a massive 29.5% by the end of the week as investors sensed another bumper result could be released by the company in the coming days. Africa Prudential like United Capital have common majority shareholders and have a robust dividend history. Dividend yield for these companies typically fall within the double digit range. This compared favourably to treasury bills which are now sub 7% per annum. United capital is yet to release its 2015 FY results however indications suggest that it will report healthy profitability growth for the year.

For investors looking to ride the bull, there might still be an upside provided they enter on Monday as both stocks are more likely to become expensive from now till they pay dividends. Some analysts believe Africa Prudentials may rise to as high as N4 whilst United Capital could rise to N2.5 if they also declare impressive dividends.

Specta

 

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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Stock Market

CitiTrust Financial Services Limited invests N395.9 million in additional LivingTrust Mortgage shares

CitiTrust has invested an additional N395.9 million for the purchase of an additional 659.8 million units of Living Trust Mortgage Bank.

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COVID-19: Oyetola commends Cititrust Holdings for supporting Osun Govt

CitiTrust Financial Services Limited has disclosed that it has invested an additional N395.9 million for the purchase of an additional 659.8 million units of Living Trust Mortgage Bank (formerly known as Omoluabi Mortgage Bank) shares.

This is according to a disclosure signed by the firm’s secretary, Olabisi Fayombo, and sent to the Nigerian Stock Exchange, as seen by Nairametrics.

The breakdown of the transaction revealed that a total of N359.9 million were spent for the purchase of an additional 659,750,000 units at N0.60 per share, and on two different occasions, i.e., 18th and 19th of January, 2021.

Recall that in 2019, CitiTrust Financial Services (CFS) Group Plc became the majority shareholder in LivingTrust Mortgage Bank, after investing heavily into the bank, preparing the stage for the bank to be more efficient and competitive.

What you should know:

  • Nairametrics earlier reported a much more improved revenue of N192 million for LivingTrust Mortgage Bank in its last reported financials-Q3, 2020.
  • In 2014, LivingTrust listed its shares on the Alternative Securities Market (ASeM) of the Nigerian Stock Exchange and thus became the first company to do so.
  • The transaction might be an indicator of increased investors’ confidence in the firm’s future and potentials.
  • LivingTrust Mortgage Bank shares closed trading for the week at N0.60

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Stock Market

UBA, WAPCO, NEM drop amid profit-taking 

Market sentiment, as measured by the market breadth, closed negative as 33 stocks lost, relative to 21 gainers.

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market's, Bears clawing down on the naira, hits N425 to $1

Nigerian stocks ended the week on a bearish note as the All Share Index declined further by -0.24% today to close at 41,001.99 from 41,099.15 index points.

  • Year-to-date and market capitalization similarly fell by -0.24% to settle at 1.82%, and N21.44 trillion respectively.
  • A total volume of 591.4 million units of shares, valued at N5.07 billion exchanged hands in 5,767 deals. TRANSCORP (-1.72%) was the most traded shares by volume at 169.2 million units, while ZENITHBANK topped by value at N681 million.
  • Market sentiment, as measured by the market breadth, closed negative as 33 stocks lost, relative to 21 gainers. LIVESTOCK (-10.00%) led the laggards today, while NCR (+9.86%) topped the gainers’ list.
  • With losses recorded in all sectors, except for the consumer goods sector which advanced by +0.06%, the NSE banking, oil & gas, industrials, and insurance sectors fell by 0.17%, 0.29%, 0.50%, and 7.93%, respectively.

READ: Bargain hunters propel Nigerian stocks up, investors gain N50 billion

Top gainers

  1. NCR up 9.86% to close at N3.12
  2. CUTIX up 9.71% to close at N2.26
  3. CHAMPION up 9.55% to close at N1.95
  4. REDSTAREX up 3.03% to close at N3.4
  5. FLOURMILL up 1.27% to close at N32

READ: Race to recapitalization catapult Insurance stocks to best performing asset class in Nigeria

Top losers

Specta
  1. LIVESTOCK down 10.00% to close at N2.52
  2. MRS down 9.68% to close at N11.2
  3. NEM down 9.67% to close at N2.43
  4. WAPCO down 6.98% to close at N26
  5. UBA down 2.79% to close at N8.7

READ: Unilever Overseas Holdings acquires N352 million worth of shares of Nigerian subsidiary

Outlook

Nigerian stocks ended the last trading session on a bearish note amid profit-taking across the market spectrum.

  • Downtrend was driven by price depreciation in large and medium capitalized stocks amongst which are; MRS Oil Nigeria, WAPCO, Lafarge, NEM, and UBA.
  • That said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum

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Stock Market

Unilever Overseas Holdings acquires N352 million worth of shares of Nigerian subsidiary

Over 27 million shares of Unilever Nigeria Plc has been acquired by Unilever Overseas Holdings.

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Quick take: Disappointing Q3 renews growth concerns, Unilever Nigeria Plc announces close period for 2020 Q1 unaudited financial accounts

Unilever Overseas Holdings, the parent company of Unilever Nigeria Plc, has acquired over 27 million shares of its Nigerian Subsidiary, worth N352,036,698.

This is according to a “Notification of Share Dealing by an Insider” signed by the Company Secretary, Abidemi Ademola, and published on the NSE website.

It is important to note that the notification is compliant with The Exchange’s policy on insider dealing.

The statement revealed that the parent company increased stakes in its Nigerian subsidiary with the acquisition of 27,079,746 additional units of the company’s shares, in a single transaction, at an average share price of N13 per share.

This puts the total consideration for the shares purchased by Unilever Overseas Holdings on the 11th of January 2021 at N352,036,698.

Specta

Why this matters

  • Dealings by insiders of listed companies are corporate actions to be disclosed by the management of the company, this is in compliance with NSE’s policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.
  • The purchase of the shares of Unilever Nigeria Plc further cements Unilever Overseas Holdings’ position as a substantial shareholder of the company.

What you should know

  • It is important to note that as of 30th September 2020, Unilever Overseas directly owned 74.03% of the 5,745,005,417 issued and fully paid shares of Unilever Nigeria Plc.
  • However, with the recent purchase, Uniliver Nigeria Plc is still compliant with the Free float requirement for the Main Board of the Nigerian Stock Exchange.

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