The Nigerian Stock Exchange (NSE) ended the first half of the year on a positive note. Year to date, the index closed up 0.09%. Although the index had a slight drop, stocks in the banking, oil and gas, and consumer goods sectors have witnessed impressive performance.
Stocks in these sectors are gradually recovering from the economic contraction of 2016, and with improved economic indices, some top players are now back on the path of profitability.
Here is a look at top performing stocks in these sectors for the first half of the year 2018.
Unity Bank Plc
Unity Bank closed trading on Friday at N0.93, up by 83%, year to date. Earlier in the year, the bank had an impressive outlook and was adjudged the best performing stock. This was largely attributed to a rumored $1 billion investment plan by a private equity firm, Milost Global.
However, the deal did not sail through as the private equity firm had to pull out, citing threats from unnamed sources.
Although the bank denied entering into such an agreement, Securities and Exchange Commission (SEC) is currently investigating the deal.
Skye Bank Plc
Skye Bank closed trading on Friday at N0.72, up by 38%, year to date.
Although the bank is yet to release its results since 2016, unconfirmed reports suggest that the bank is in a N700 billion hole. Nevertheless, investors have poured money into the bank’s stocks hoping to keep reaping rewards if share prices continue to rise.
Sterling Bank Plc
Sterling Bank closed trading on Friday at N1.39, up by 38%, year to date. At the beginning of the year, the bank announced the retirement of Mr. Yomi Adeola as its Managing Director/Chief Executive Officer and appointed Abubakar Suleiman as its new CEO.
The new CEO comes with a background in non-interest banking – a segment which Adeola had signified that the bank would be getting a stand-alone license for.
The bank has also announced plans to change its operating structure to that of a holding company.
The bank’s financial result for Q1 2018 shows a surge in gross earnings from N28 billion in Q1 2017 to N39.7 billion in Q1 2018. Profit before tax increased from N2.03 billion in Q1 2017 to N3.17 billion in Q1 2018.
Wema Bank Plc
Wema Bank closed trading on Friday at N0.7, up by 40%, year to date. The bank has revealed plans to raise additional ₦20 billion from the bond market in July this year. This will be its second debt program after it initially raised ₦6.2 billion in the first tranche of its ₦50 billion debt program.
The debt issue would help Wema Bank to boost its capital adequacy ratio above its internal guidance of 15%, from 14.3%.
In its Q1 2018 financial reports for the period ended March 31, 2018, gross earnings increased from N15.27 billion in Q1 2017 to N16.07 billion in Q1 2018. Profit before tax also increased from N849 million in Q1 2017 to N883 million in Q1 2018.
Oil & Gas Sector
Eterna Oil & Gas Plc
Eterna Oil closed at N6.41 on Friday’s trading session. As at June 29, 2018, the stock is up 66%.
Eterna Oil was incorporated on January 13, 1989, as Eterna Oil and Gas Limited. The company commenced operations in 1991 and was listed on the Nigerian Stock Exchange in 1998.
The company is into the manufacturing and marketing of lubricant oils, petrochemicals, importation, and sale of fuel through its retail outlets for gas and crude oil trading.
Results for the first quarter ended March 2018 show that revenue increased from N51.9 billion in 2017 to N54 billion in 2018. Profit before tax, however, fell from N1 billion in 2017 to N751 million in 2018. Profit after tax also dropped from N681 million in 2017 to N510 million in 2018.
Consumer Goods Sector
NASCON Allied Industries Plc
Nascon Allied Industries closed at N22.75 and as of June 29, 2018, the stock is up by 23%.
In its Q1 2018 financial statement for the period ended March 31, 2018, revenue increased from N6.46 billion in Q1 2017 to N6.76 billion in Q1 2018. Profit before tax dropped from N1.17 billion in Q1 2017 to N1.56 billion in Q1 2018.
In Q1, its revenue from sales also increased from N5.5 billion in Q1 2017 to N5.7 billion in Q1 2018. The amount represents revenue realised during the period from the sale of edible, refined, bulk and industrial salt, as well as seasoning, tomato paste, and vegetable oil.
Nascon Allied Industries Plc (formerly known as National Salt Company of Nigeria Plc) was incorporated in Nigeria as a limited liability company on April 30, 1973.
It was fully privatised in April 1992 and became listed on the Nigerian Stock Exchange on October 20, 1992.
The major shareholder of the company is Dangote Industries Limited which owns 62.19% of the issued share capital, while the remaining 37.81% is held by the Nigeria investing public.
Unilever Plc closed trading on Friday at N52.25, up by 28%, year to date. In its Q1 financial results for the period ended March 31, 2018, revenue increased by 16% from N22.17 billion in Q1 2017 to N25.81 billion in Q1 2018. Profit before tax also increased from N2.18 billion in Q1 2017 to N3.93 billion in Q1 2018.
In its recent Annual General Meeting, the shareholders of Unilever Plc approved the plan by the company to divest its spread segment to Sigma Bidco. The spread business segment currently includes the production of Blue Band Margarine.
The company has also disclosed a planned initiative aimed at increasing access to local raw materials through a partnership with intermediary farmers. This will, among other things, drastically reduce the company’s dependence on importation of raw materials and cost of production.
Zoom is 3 times bigger than Nigeria’s Stock Market Capitalization
Zoom sported a market valuation of $131 billion, compared to the Nigerian Stock market with a value standing at $42.1 billion.
The world’s fastest-growing video conferencing service company, Zoom, has seen its market valuation rocket past $130 billion—more than 3 times the value of the Nigerian Stock Exchange.
Zoom has attracted high demand growth for its service, especially since COVID-19 changed the way the world works. As one of the pioneers of modern work-from-home tools, millions of organizations around the world have adopted the application as their preferred communication tool in the workplace, particularly video conferencing.
What we know: At the time of drafting this report, Zoom sported a market valuation of $131 billion, compared to the Nigerian Stock market with a value presently standing at $42.1 billion (N16 trillion), using the official exchange rate of N380 to $1.
- Zoom’s enviable performance began in early 2020, when it printed a market capitalization of just $19 billion. While Zoom posted $1.35 billion in revenue over the past 12 months, the Nigerian Stocks bourse, in comparison, printed a market capitalization of $39.1 Billion (N14.87 trillion) at the end of January, according to data obtained from Nairalytics (financial data arm of Nairametrics).
- The bullish run got intensified for the tech company, particularly in Q2 that ended August 31, when it posted an impressive earning result of $663.5 million in revenue (far beating analysts’ prediction of $500.5 million)—and it still firing on all cylinders.
- Such gains seen in Zoom’s stock price have added so much wealth to its investors, that Zoom founder, Eric Yuan, has seen his own fortune rise more than 551% year to date, with a valuation put at about $23.2 billion, according to data seen from Bloomberg Billionaire Index.
Eric Yuan is presently the chairman and CEO of Zoom Video Communications, the world’s biggest provider of video conferencing software to the business.
On the other hand, Nigerian stocks also defied expectations and produced positive returns, with every month in the third quarter, printing positive returns as buying pressure increased across the market spectrum. The Nigerian stock market’s performance was triggered by the Industrial Index emerging as the biggest gainer, up by 8.14% followed by the most liquid index, banking index (10.08%), and the Consumer Index printing (2.74%), still market capitalization hovered below $40 billion.
Zoom has now boosted its revenue forecasts to $690 million for the present quarter (through the end of October), and also increased its financial guidance for the full fiscal year, through Jan 2021, to about $2.4 billion in revenue, up from $623 million for the year through January 2020, as it takes into account the demand for remote work solutions for businesses reaching a record high.
The exponential valuation seen in the world’s biggest video company had been enhanced by the fact that a significant amount of businesses and individuals now work remotely, on the bias of the world’s most disruptive biological pathogen COVID-19’s continued spread, triggering global investors to increase their buying pressure on the American communications technology company, which is barely less 10 years old in operation.
Bottom-line: Covid-19 may have caused a lot of damage to the global economy since it was declared a pandemic in the first quarter of the year, but not for remote working app companies like Zoom, Slack, and Microsoft Teams.
- The US stock markets assign significant value to companies that can grow exponentially, as they believe these are companies that will continue to dominate the future of work.
- Just like US tech stocks, stocks on the Nigerian Stock Exchange have also gained significantly in the latter part of this year.
- However, rather than gaining from higher revenues growth, they have relied on Meffynomics (lower interest rate in a high inflation economy) to attract portfolio inflows from local investors.
Seplat declares a total interim dividend of $29 million for shareholders
The Interim dividend of US$0.05 per share will be paid on all the outstanding 588,444,561 ordinary shares of the company.
Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and London Stock Exchange, has announced the payment of a total $29,422,228.05 as interim dividend to shareholders.
This information is contained in its notification dated 30 October, 2020, which was signed by the Company Secretary, Mr. Emeka Onwuka, and sent to the floor of the Nigerian Stock Exchange today.
The notification partly reads:
“Seplat Petroleum Development Company Plc (“Seplat” or the “Company”), a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and London Stock Exchange, today announces an interim dividend at a rate of US$0.05 (United States Five Cents) per Ordinary Share (subject to appropriate WHT) to be paid to SEPLAT’s shareholders whose names appear in the Register of Members as at the close of business on 13th November 2020.”
What you should know
- The Interim dividend of US$0.05 per share will be paid for all the outstanding 588,444,561 ordinary shares of the company owned by the shareholders of the leading energy company, and this gives a total interim dividend of $29,422,228.05, to be distributed to the shareholders of the company.
- The Interim Dividend of US$0.05 (United States Five Cents) per Ordinary Share of N0.50k each (subject to appropriate withholding tax) will be paid to shareholders whose names appear in the Register of Members as at the close of business on 13th November, 2020.
- To enable SEPLAT’s Registrar, Datamax Registrars Limited, prepare for the payment of the interim dividend, the Register of Shareholders will be closed on 16th November 2020.
- On the London Stock Exchange, the Associated Record Date will be 13th November, 2020, and the Ex-Dividend date will be 12th November, 2020.
- The exchange rate for the naira or pounds sterling amounts payable will be determined by reference to the relevant exchange rates applicable to the US dollar on 12th November, 2020, and will be communicated by the Company on 13th November, 2020.
- On or around 7th December, 2020, the interim dividend will be paid electronically to shareholders whose names appear on the Register of Members as at 13th November 2020, and who have completed the e-dividend registration and mandated the Registrar to pay their interim dividend directly into their Bank accounts.
- Shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar.
Total, Nestle, lead Nigerian Stocks to record high
Market breadth closed positive as NESTLE led 43 Gainers as against 11 Losers topped by PRESTIGE at the end of today’s session.
Nigerian stocks were blue hot on Friday, as investors momentarily went bullish on most listed stocks. The All Share Index gained 3.71% to close at 30,530.69 points as against +1.58% appreciation recorded on Thursday.
- Nigerian Stock Exchange capitalization presently stands at about N16 trillion naira.
Its Year-to-Date (YTD) returns currently stands at +13.74%.
- That said, Nigerian bourse trading turnover was very impressive at Friday’s trading session as volumed surged by +115.27% as against -2.68% downtick recorded on Thursday.
- UBA, ACCESS, and FBNH were the most active to boost market turnover. GUARANTY and STANBIC topped the market value list.
- Market breadth closed positive as NESTLE led 43 Gainers as against 11 Losers topped by PRESTIGE at the end of today’s session – an unimproved performance when compared with the previous outlook.
- NESTLE up 10.00% to close at N1421.7
- MOBIL up 9.98% to close at N196.1
- BUACEMENT up 9.90% to close at N45.5
- TOTAL up 9.25% to close at N129.9
- DANGCEM up 3.03% to close at N160
- PRESTIGE down 10.00% to close at N0.54
- NAHCO down 5.41% to close at N2.1
- GUINNESS down 3.13% to close at N17
- PZ down 2.20% to close at N4.45
- ETI down 0.88% to close at N5.65
Nigerian bourse was fired up at all cylinders amid falling oil prices across the market spectrum.
- NSE30 stocks saw high buying pressures as Total and Nestle recorded maximum daily gains on Friday.
- Nigerian institutional investors seem to be shifting more of their funds to Nigerian Stocks on the prevailing low returns seen in the Nigerian debt market.
- Nairametrics, however, envisage cautious buying amid growing uncertainty in Nigeria’s key international market, particularly Europe, where about 40% of Nigeria’s major oil earning comes from.