As we enter into the second month of the third quarter of the year, the Nigerian Stock Market is down 4.2% Year to date (YTD). The month of July closed at about -4.29% as the bears continue to dominate market proceedings.
A lot has been said about what could be causing the bearish sentiments however, there is still a lot of money being made, perhaps by a small band of retail and institutional investors.
Currently, there are about 10 stocks that have returned 50% and above YTD and as things stand, they are still gaining. Here is a list of these stocks;
|Stocks||YtD % ∆|
|CEMENT CO. OF NORTH NIG. PLC||225.3%|
|C & I LEASING PLC||93.8%|
|N.E.M INSURANCE CO (NIG) PLC||77.7%|
|UNITY BANK PLC||62.3%|
|IKEJA HOTEL PLC||58.4%|
|CAVERTON OFFSHORE SUPPORT GROUP PLC||55.0%|
|BETA GLASS CO PLC||52.0%|
|ETERNA OIL & GAS PLC||50.2%|
Are they still a buy?
While it’s too early to judge, trading in the first three days of August provide some mixed reviews. For example, CCNN did very well in July but has started August down by about 8%. Cutix Plc which has been riding high on the back of its planned bonus issue has also lost about 3%.
NEM Insurance, faced with a scramble for the stock by majority shareholders has been flat this month. Beta Glass, on the other hand, is up 2.3% after starting the month on a blistering return of about 12%.
So what are the factors instigating the surge in their share price? We tried to explain this in the table below;
|Stocks||YtD % ∆||Remarks|
|CEMENT CO. OF NORTH NIG. PLC||225.3%||A string of decent results and rumour of a possible merger.|
|CUTIX PLC||111.4%||Company announced a bonus issue|
|C & I LEASING PLC||93.8%||Nigeria’s most popular leasing company is recapitalizing and recently announced that its bond offer was 133% subscribed.|
|N.E.M INSURANCE CO (NIG) PLC||77.7%||The majority shareholders of this company are battling with the next set of majority shareholders for the ownership of the company. Recently, the shareholders of the company approved a private placement which has ensued a scrambling for the shares of the company.|
|FIDSON||66.2%||The company reported a 26% jump in profits this half year and also making moves on the recapitaliation front. Interesting to note that Fidelis Ayebaye, the chairman is also a major stakeholder and role player in the NEM fiasco.|
|UNITY BANK PLC||62.3%||They have been trying to sell this bank for months now. Share price was much higher than this at the start of the year but it seems to have found a floor as buyers remain scarce.|
|IKEJA HOTEL PLC||58.4%||Another company with a boardroom squabble|
|CAVERTON OFFSHORE SUPPORT GROUP PLC||55.0%||A string of good results is also helping this company. Oil prices are also up which means more deals for the company.|
|BETA GLASS CO PLC||52.0%||We have noticed major crossing of shares from this stock as block owners of the stock look to sell.|
|ETERNA OIL & GAS PLC||50.2%||No information.|