The Nigerian Stock Exchange ended the week down 0.16% to close at 42,570.89 basis points. The index has so far lost 4% this month, but year to date is up 11.32%. Here is a look at the stocks that gained last week, and our views on how they will perform this week.
Livestock Feeds Plc
Livestock Feeds Plc was the week’s biggest gainer. The stock opened at N1.00 and closed at N1.19, gaining 19%. Year to date, the stock is up 43% so investors may decide to cash out their profits. The company is also likely to record a full year loss as the results for the 9 months ended, September 2017 show that it made a loss before tax of N261 million.
Japaul Oil and Maritime Services Plc
Japaul gained 16.67% during the week, opening at N0.36 and closing at N0.42. The stock’s appreciation is largely due to the news last week of Milos Global, a private equity firm, investing $350 million in the company. Prior to this, Japaul had dropped below N0.50. Investors may decide to re-enter the stock due to current positive sentiments.
CAP Plc
CAP Plc opened the week at N35.25 and closed at N38, gaining N2.75 or 7.80%. Year to date, the stock is up 11.76% in tandem with the All Share Index’s performance. CAP Plc could appreciate further as the earnings season approaches and investors take positions in order to benefit from the dividend.
Aiico Insurance Plc
Aiico gained 7.14% during last week’s trading session. The stock opened at N0.70 and closed at N0.75. Year to date, the stock is up 44.23%. Investors may decide to sell in order to cash out their gains.
UBA Plc
United Bank For Africa (UBA) Plc gained 6.58% last week. The stock opened at N12.15 and closed at N12.95. Year to date, the stock is up 25.73%. Investors may decide to key into the stock as earnings season begins and the bank, which is one of the tier one banks, would be among the first set of companies to release their results.
Fidson Healthcare Plc
Fidson gained 6.49% during the week. The stock opened at N4.47 and closed at N4.76. Year to date, the stock is up 28.65%, but could appreciate further as investors position in expectation of a bumper dividend. Fidson paid a total of N75 million for the 2015 and 2016 financial years, amounting to 5 kobo per share.
The company had revenue of N10.3 billion for the 9 months ended, September 2017, compared to N4.5 billion for the comparative period in 2016. Profit before tax also increased from N120 million in 2016 to N1 billion in 2017.
First Aluminium
First Aluminium gained 5.41% during last week’s trading session. The stock opened at N0.37 and closed at N0.39. Year to date, the stock has declined by 22%, largely due to the movement of the minimum price floor to N0.01, but could witness slight appreciation as speculators could decide to take positions.
University Press Plc
University Press Plc gained 5.26% during last week’s trading session. The stock opened at N2.09 and closed at N2.20, appreciating by N0.11. The stock could witness further appreciation in the coming week, as it is down 3.51% year to date despite positive results.
Results for the 9 months ended,December 2017, show that revenue increased from N1.5 billion in 2016 to N1.7 billion in 2017. Profit before tax also increased from N258 million in 2016 to N361 million in 2017.
Cadbury Nigeria Plc
Cadbury Nigeria Plc gained 4.97% in last week’s trading session. The stock opened at N15.10 and closed at N15.85, adding N0.75. Further upside next week may be limited even though the stock has gained just 1.15% year to date. Cadbury’s fundamentals remain quite poor.
Linkage Assurance Plc
Linkage Assurance Plc opened last week at N0.88 and closed at N0.92, gaining N0.04 or 4.55%. Year to date, the stock has gained 39.3%, so investors could decide to take profits.
Japaul had better recover let me make a comfortable exit.