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Stock Market

Dangote Cement, MTN hit N3 trillion market cap, as GT Bank crosses N1 trillion

Great performance for Dangote Cement and MTN Nigeria as they each hit the N3 trillion market capitalisation mark.

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Closed Period, Investors' demand for Nigerian stocks climb, as portfolio investment gains N223.4 billion, NSE CGI down by 0.93%, as shares of Unilever, Dangote Sugar, PZ decline

Dangote Cement and MTN Nigeria have both crossed the N3 trillion market capitalisation mark, while GT bank also hit N1 trillion during the week, as their Investors gained N1.93 trillion from January to date.

As at the close of trading session on Tuesday, 10th November 2020, MTN Nigeria was worth N3.18 trillion to be the most capitalised firm on the Stock Exchange, Dangote Cement closed with a valuation of N3.15 trillion while GT Bank with N1.03 trillion, all three boasting an aggregate value of N7.36 trillion, which represents 43.2% of the total equity value of the Stock Exchange.

Highlights

  • Dangote Cement grew its market capitalisation by 30.28% year-to-date, from N2.42 trillion recorded as at the end of trading on the 31st December 2019 to N3.15 trillion as of 10th November 2020.
  • MTN recorded a year-to-date growth of 48.76% from N2.14 trillion as of December 2019 to a current valuation of N3.18 trillion, hitting a record high at N156.2 per unit of share.
  • The most capitalised financial institution on the Stock Exchange, GT Bank saw its market capitalisation grow by 17.85% year-to-date, with a cost per share of N35.
  • The Stock Exchange Equity cap is currently valued at N17.06 trillion.
  • Investors in Dangote Cement, MTN and GT Bank gained a sum of over N1.9 trillion, from January to date.

What is their financials saying?

MTN

A cursory look at the financial performance of MTN in the 9-month period between January and September 2020 showed that the Telco giant boosted its revenue by 13.9% as it generated a sum of N975.8 billion and posted an operating profit of N307 billion.

However, it recorded a 3.3% drop in profit after tax from N149.2 billion in the comparable period of 2019 to N144.2 billion while its earnings per share also dropped by the same margin to close at N7.09 as at the end of September.

According to the report, the 7.8% growth in operating profit was largely impacted by the increase in finance costs as a result of increased borrowings (September 2019: N381 billion, September 2020: N509 billion) leading to 0.6% decline in profit before tax to N211.6 billion.

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Dangote Cement

Dangote Cement grew its revenue by 12.2% from N678.8 billion recorded in the corresponding period of 2019 to N761.4 billion as of September 2020. It also recorded a marginal increase in gross profit margin from 57.4% as of September 2019 to a current margin of 58.3%.

The Industrial giant, posted a profit after tax of N208.7 billion in the review period, representing a 35.2% increase when compared to N154.4 billion recorded in 2019 while earnings per share grew by 34.6% to N12.25.

Nairametrics earlier reported that the Nigerian government has given Dangote Cement the approval to export Cement to West African countries through the Nigerian land borders, which has been closed for over a year, an avenue to increase revenue, reduce cost of transportation, hence profitability.

GT Bank

Stanbic 728 x 90

The banking giant, which just received approval from the Central Bank to operate as a financial holding company boasted of 1.5% revenue growth as of June 2020 despite the COVID-19 induced lockdown in the country for most parts of the second quarter.

GT Bank however, recorded a 4.9% decline in profit of N94.3 billion as against N99.1 billion in 2019 half-year. This reflected in the earnings per share as it declined by 5.1% to stand at N3.31. It should be noted that as at the time of writing this article, GT Bank is yet to release its Q3 financial report.

Below is the table of the top 10 most capitalised companies on the Stock Exchange and their sectors, as of November 10th 2020;

Bottom line

As these Stock keeps appreciating in value, it shows a sign of the confidence Investors have in them as buying pressure was seen across major listed stocks. This is likely to continue in the short-term as many Investors will look to take their share of the market gain before the end of the year.

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Markets

NSE All-share index plunges as JAPAULGOLD surges

The market closed beneath expectation as JAPAULGOLD led 15 Gainers, and 20 Losers topped by CUSTODIAN.

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Nigerian Stock Exchange market made a BEARISH run at the end of today’s trading session. The All-Share Index decreased by -0.4% to close at 38,712.55 from 38,866.39 index points.

  • Nigerian Stock Exchange market value currently stands at N20.26 trillion. Its Year-to-Date (YTD) returns currently stands at -3.87%.
  • The market closed beneath expectation as JAPAULGOLD led 15 Gainers, and 20 Losers topped by CUSTODIAN with a noticeable bearish movement by the NSE ASI.

Top gainers

  1. JAPAULGOLD up +9.52% to close at N0.69
  2. UAC-POP up +9.33% to close at N 0.82
  3. AFRIPRUD up +8.33% to close at N5.85
  4. ROYALEX up +8.33% to close at N0.39
  5. STERLBANK up +7.69% to close at N1.68

Top losers

  1. CUSTODIAN down -14.29%to close at N6.00
  2. STANBIC down -9.94% to close at N43.50
  3. GUINNESS down -9.93% to close at N26.75
  4. NAHCO down -7.73% to close at N2.03
  5. PZ down -5.15% to close at N4.60

Outlook

Despite prior predictions by analysts, the market trended bearish at the end of trading session on Monday. Speculations are that we might see recovery in the financial and consumer sector that will push the NSE-ASI back to profit.

  • Nairametrics however, advises cautious participation in the stock market in this era of growing uncertainties.

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Consumer Goods

Best performing mining, industrial and consumer goods stocks from last week

The shares of the following mining, industrial and consumer goods companies delivered gains in excess of 6.9% for investors last week.

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Best performing mining, industrial and consumer goods stocks from last week

Market data for the week ended 9th April 2021 revealed that the Nigerian Equity space closed on a negative note, as the All-Share Index and the market capitalization depreciated by -0.66%, to close the week lower at 38,866.39 and N20.335 trillion respectively.

This bearish move has been linked to the conclusion of an impressive annual reporting season, as this leaves few incentives to bet on slightly higher returns from equities, with the rising yields in the fixed-income market.

READ: Shares of these FMCG companies grew by more than 55% in 97 days of 2021

Some industrial, mining, and consumer goods stocks delivered decent returns during the week

Despite the prevailing bearishness in the market which impacted the performance of some key consumer and industrial good stocks on NSE last week, shares of the following industrial, mining, and consumer goods companies delivered decent returns for their holders during the week.

The gains were driven by buying activities on the exchange as some analysts and investors consider them to be trading at discounts, with tremendous value. This made bargain hunters scamper for the shares of these companies during the week ended 9th April 2021.

READ: Nestlé’s capitalization on NSE sheds N103 billion in market value in Q1 2021

Japaul Gold and Ventures Plc (JAPAULGOLD), W-o-W gains: 40%

The rebranded and restructured mining company with a key focus on gold exploration was the best-performing stocks on NSE last week. The company also maintained the status of the best performing mining stocks.

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The shares of the gold exploration company surged by an impressive 40% last week driven by buying pressures in the shares of the company.

The company’s relatively low price driven by the recent sell-down in its shares prompted bargain hunters to accumulate additional stakes in it, in a bid to capitalize on the upward swing in its share price.

This move saw the shares of the company increase from N0.41 to N0.63 per share, representing a whopping 40% gain in just a week.

READ: Nestlé’s capitalization on NSE sheds N103 billion in market value in Q1 2021

Meyer Plc (MEYER), W-o-W gains: 19.51%

The shares of the key player in the paint and decorative industry increased from N0.41 per share at the market open last week, to N0.49 per share, to print a gain of 19.51% at the close of trading activities for the week ended 9th April 2021.

Stanbic 728 x 90

Prior to this move, the shares of the company declined by 24.07%, from N0.54 at the open of trade this year, to N0.41 per share on the 9th of March 2021.

At this price, buying activities in the shares of the paint manufacturer and marketer surged owing to the actions of bargain hunters. This led to the move up to N0.49 during the week.

READ: NIPC grants tax holiday to Honeywell, Savannah Sugar, 4 others with N175.28 billion investments

Flour Mills Nigeria Plc (FLOURMILLS), W-o-W gains: 6.90%

Shares of Flour Mills Nigeria Plc, one of the biggest brands in the food and agro-allied industry in Africa, surged by 6.9% last week, as the shares of the consumer goods company increased from N29.00 per share to N31 per share during the week ended 9th April 2021.

The impressive N2 per share or 6.9% gain in the shares of Flour Mills last week was driven by the buying interest in the shares of the flour miller, as investors anticipate an impressive financial performance ahead of the company’s earnings season.

This bullish move in the shares of Flour Mills pushed the market capitalization of the miller up by more than N8.2 billion on the exchange from N118.9 billion at market open to N127.1 billion at the close of the market last week.

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What you should know

Ayodeji Ebo, head of retail investment at Chapel Hill Denham in Lagos, in a conversation with Bloomberg revealed that the market will be bearish in the first half of 2021.

He added that after the result season, the investing public should expect a further depression because there will be no further catalysts to drive the market.

Ayodeji suggested that the growing yield in the fixed income space will continue to be a major issue as investors will become more inclined to get a one-year Treasury bill at 7% now, than taking a risk of 8 or 9%.

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