The Nigerian Stock Exchange All Share Index closed down as investors cashed out some of their profits. The following stocks topped the gainers chart last week and here is what we think about the week going forward.
- Wapic Insurance
Wapic Insurance was the biggest gainer in last week’s trading session, adding 6 kobo or 10.91%. The stock could havea bearish performance this week, as the NSE’s N0.01 floor kicks in. Penny stocks like Wapic could have significant volatility. Year to date, the stock has gained 22%.
- Dangote Sugar refinery
Dangote Sugar Refinery had a fantastic 2017, in terms of results and price appreciation. 2018 seems to be a continuation of that pattern. The stock gained 9.80% last week, and is up 9.80% year to date. Even though it is currently trading at a price to book ratio of 3, investors could remain bullish towards the stock in anticipation of a bumper dividend. The company for the first time in its history paid an interim dividend of 50 kobo per share last year.
- NASCON Allied Industries
NASCON also seems to have continued its 2017 run, as it gained 9.63% in last week’s trading session. Year to date, the stock is up 12.59%. There could be further upside this week, even as the stock is currently trading at a price to book ratio of 3.
- Trans Nationwide Express
A surprising addition to the list of top gainers last week was Trans Nationwide Express. The courier and logistics company gained 8% in last week’s trading session. Year to date, the stock has appreciated by just 3.85%, suggesting room for further upside. The stock largely lagged last year due to a dilutive effect of a rights issue which it embarked on.Further appreciation this week may be unlikely, as the NSE implements the N0.01 rule.
- PZ Cussons Plc
Fast Moving Consumer Goods (FMCG) giant PZ joined the top gainers last week with a 6.89% gain. 2017 was a difficult year for most FCMGs due to FX liquidity issues, but this seems to have passed. The stock has appreciated by just 14.08% year to date, leaving room for further upside.
- Nigerian Breweries
Nigerian Breweries gained 6.72% in last week’s trading session. Opening at N142.19 and then closing at N151.75. The stock has gained just 12.49% year to date, leaving room for further price appreciation.
- UACN Property Development Company Limited
UPDC, as the stock iscommonly known, gained 6.67% last week, opening at N3.00 and closing at N3.20. Year to date, the stock has appreciated by just 14.70%. The stock performed poorly in 2017 due to poor results and 2018 may just be the year it bounces back as it applies proceeds of a rights issue.
- Dangote Flour Mills
Dangote Flour Mills appreciated by 6.55%or N0.98 in last week’s trading session. The stock opened at N14.97 and closed at N15.95. The company had an impressive 2017 in terms of results and share price performance like its sister companies in the Dangote Group. Year to date, the stock has appreciated by 31%, but may still rally a bit more, due to speculation about a planned dividend payment.
- Cutix Plc
Cutix Plc gained 5.78% in last week’s trading session. Year to date, the stock is up by 19.40%. There may be room for further price appreciation as investors turn their focus to penny stocks.
- Learn Africa
Learn Africa rounds up the gainers’ list for last week with a 5.43% gain. The stock opened at N0.92 and closed at N0.97. Possibility of further upside this week may be limited as the N0.01 floor takes effect.