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Business News

C & I leasing gains 349% as Nigerian stocks end first quarter of 2019 in deep red

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Stock, stock, trading, Nigerian-stocks, Nigerian Stock Exchange Weekly Report

Nigerian stocks closed the first quarter of the year posting a combined year to date negative return of 1.24%. Apart from the Premium and Industrial Goods indexes, most other indexes posted negative returns.

The first quarter of the year witnessed a slew of cautious investing as investors weighed the possible consequences of the 2019 general elections, Brexit, the US economy and other emerging market developments. So while investors helped stocks close higher in February with a 6.41% pop, March performance dragged the index down falling by 2.14%.

As we begin a new quarter, it is important to take note of stocks that have performed the best in the first quarter of this year while also observing those that performed worse.

Nigerian Stocks 2019 First Quarter Performance

How many stocks gained – Based on the data from the Nigerian Stock Exchange, about 44 stocks posted gains in the first quarter of the year. Our of the 44, 26 posted at least double-digit gains and one triple-digit gain.

Best stock for the year so far – C&I leasing was the stock that posted the best return in the first quarter of 2019 with a whopping 349% return. This is despite the fact the company is yet to publish its 2018 9 months and full year results. In its half-year results, pre-tax profits were only up by 20% while revenue was only up by 10% year on year respectively.

Why C&I Leasing – Typically when stocks report impressive returns like we have seen above it is often tied to a potential change in the shareholding structure of the company. It could perhaps mean that there is likely going to be an acquisition, merger, potential investment or share reconstruction. The company does have about N2.28 billion in deposit for shares. A more plausible reason for the share price increase could well be the share consolidation being executed by the company. C&I Leasing recently consolidated 4 shares existing in the company into 1. This should basically quadruple its share price.

Other top gainers – These include the likes of ABC Transport, Dangote Flour, and Julius Berger which gained, 83%, 49%, and 37% respectively. Focussing on Julius Berger, the construction giant reported a 47% rise in earnings per share on the back of improved topline revenues. Construction contracts, for example, rose from about N135 billion in 2017 to about N178.5 billion in 2018. The company also declared a final dividend of N2 per share sending the share price northwards.

What about losers – There were about 63 stocks on the losers list with about 35 of them losing over double digits. Notable among the losers were GSK, Flour Mills, Nigeria Breweries and PZ Cussons losing 26, 22%, 22%, and 19% respectively. GSK share price drop is rather surprising considering that it had a better result than the year before and also declared dividends.

Here is a list of the best and worst stocks in the first quarter of this year.

Note: Thanks to our visitor KC for the comment on the share consolidation

Download (PDF, 186KB)

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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    Real Estate

    FG to unveil dedicated portal for sale of houses to Nigerians

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

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    Nigeria needs N1.5 trillion within the next 3 years to fix roads - Fashola

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

    The platform is expected to help contributors to the National Housing Fund (NHF) access mortgage loans on a first-come, first-serve basis.

    This disclosure was made by the Minister of Works and Housing, Babatunde Raji Fashola while speaking at the ninth meeting of the National Council on Lands, Housing and Urban Development in Jos, Plateau State.

    Fashola, who was represented by the Minister of State for Works and Housing, Abubakar Aliyu, pointed out that the ministry is currently at the completion stages of the first phase of the national housing programme in 34 states of the federation, which provided land for it.

    He said, “We urge the state governments to alert their residents to this opportunity for interested persons to apply.”

    Fashola commended the Federal Mortgage Bank of Nigeria (FMBN) for being at the forefront of the cooperative housing initiative at the federal level, adding that it has the advantage of allowing cooperative members to choose what they design and build to fit their budgets.

    They can leverage their members to get group discount for the purchase of building materials as well as the engagement of contractors.

    Fashola disclosed that FMBN as the driver of the housing initiative has engaged 86 co-operatives in projects; approved N35, 784 billion cumulatively; disbursed N10.95 billion; and processed as at January, 57 co-operative housing development loans.

    Hotflex

    Fashola emphasized that what the Federal Government can do directly in housing is limited compared to what states can do, just as state governments are also limited, compared to what the private sector and individuals can do.

    He said, “The majority of houses available for sale or rent belong to individuals and private companies compared to what states or Federal Government has available. Therefore, many of the tenants who owe rent, who face eviction or who seek to rent or buy property are dealing with private citizens or companies and less so with government agencies.’

    My recommendation for improving access and affordability to housing in the Covid-19 era is for private companies and individuals to give back some of what they control to citizens in the way the Federal Government has given back to citizens some of what it controls.’’

    He explained, “for example in cases where the rent of businesses or individuals are due for renewal, the private landlords can give back, by accepting monthly, quarterly or half-yearly rent instead of one year, two or three years rent in advance.”

    Bottom line

    Nigeria has been bedevilled by a housing crisis that has left Africa’s most populous nation ill-equipped to properly provide accommodation for its citizens and inhabitants.

    Some of the housing problems in the country include unresolved rent tenure arrangements, high cost of building materials, access to infrastructure, deficiency of housing finance arrangements, stringent loan conditions from mortgage banks, time to process legal documents and inadequate government housing policies.

    Jaiz bank

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    Coronavirus

    Covid-19: Nigeria committed to procuring 29 million J&J vaccines

    The Nigerian Government is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative. 

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    AstraZeneca suspends COVID-19 vaccine final stage trial over safety concerns, COVID-19: J&J starts vaccine trials on humans after success on monkeys

    The Nigerian Government says it is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative.

    This was disclosed Mrs Zainab Ahmed, Minister of Finance at the recent ‘Collaborative Africa Budget Reform Initiative (CABRI) General Assembly webinar.

    What the Minister said

    “Therefore, the supplementary budget for COVID-19 vaccines will cover the cost of additional vaccines over and above those provided by COVAX, as well as the full cost of operations and logistics for delivering the vaccines around the country.

    Already, the sum of N29.1 billion has been released from the Routine Immunization budgetary provision (Service Wide Vote) to the National Primary Healthcare Development Agency (NPHCDA) as an advance for the operational cost of deployment of the COVID-19 vaccines. The N29.1 billion represents about 52 percent of the amount required over 2021-22,” she said.

    She added that FG plans to vaccinate 70 percent of eligible (18 years and above) Nigerians over the 2021 and 2022 fiscal years, with the COVAX agreement willing to cover 43.1 million of the eligible population.

    In case you missed it

    The World Health Organization (WHO)  announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.

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