The Nigerian stock market has returned a whopping 43% year to date making it one of the best performing stock markets in the world this year.
This year’s performance contrasts sharply with 2019 when stocks closed negatively at 14.9% and it is on track to beat 2017 returns of 42.3%. The stock market turnaround began right during the lockdown but took off in late August as new monies from matured treasury bills and Omo auctions flowed into the economy.
According to information from Nairalytics research, about 57 stocks posted year-to-date gains at Christmas, a figure that is likely to touch 60 stocks by the end of the year. About 65 stocks currently post year to date losses.
Considering how beautiful the year has been for most stocks, Nairalytics data also reveal about 21 stocks have gained above 50% this year. See snapshot
- Above 20% – 40 stocks
- Above 30% – 34 stocks
- Above 50% – 21 stocks
- Above 100% – 6 stocks
- Above 200% – 3 stocks
- Above 300% – 2 stocks
- Above 400% – 1 stocks.
Top 5 stocks in ascending order
Livestock Feeds – The Agro-allied company has had an amazing 2020 aided by the government’s support for the Agriculture sector and the border closure. Nigerian farmers may not be happy with the price of feeds but company’s like Livestock have reaped the benefit of higher prices and scarcity.
Current share price: N1.3
Opening 2020: N0.50
Year high: N1.52
Year low: N0.46
YTD return: 160%
Current earnings per share: N0.749
Airtel Africa – The telecoms giant has had a stupendous 2020 riding on the thirst for data amidst the Covid-19 lockdown. Its revenue rose 16.4% to $1.8 billion while EBITDA also rose 19.3% in the first half of the year respectively. The stock has also attracted the attention of foreign investors who have taken advantage of its duel listing to take dollars out of the country.
Current share price: N851.8
Opening 2020: N298.9
Year high: N851.8
Year low: N298.90
YTD return: 185%
Current earnings per share: $3.0
BUA Cement – The cement conglomerate has had a very busy 2020 where the fruit of its 2019 merger was expected to be fully operational. Some may attribute its share price increase to several factors including the usual Forbes effect. However, N59.3 billion posted in the first 9- month of this year as pre-tax profits is higher than the N50 billion posted in the whole of 2019.
Current share price: N60
Opening 2020: N18.1
Year high: N60
Year low: N27.6
YTD return: 231%
Current earnings per share: $3.0
FTN Cocoa – Another Agro-allied company but with more opaque than transparent operations in the year under review. There are no fundamental reasons (from our point of view) why the stocks should be attracting this much value so we are left to assume the shareholders are bracing up for a potential capital raise. The company also posted a loss in its latest period to date result.
Over half of its current returns were made in the last 25 days.
Current share price: N0.89
Opening 2020: N0.2
Year high: N0.89
Year low: N0.2
YTD return: 345%
Current earnings per share: -N15.9
Sunu Assurance – Yet another one of the less glamorous stocks on the exchange that have attracted a significant increase in its valuation this year. In fact, this is officially the best performing Nigerian stock on Christmas day.
Sunu has a francophone owned insurance company and borne out of the merger between Equity Indemnity Insurance and First Assurance. Just like, FTN Cocoa there is no apparent fundamental reason for its share price appreciation so we are left to assume this is due to the recapitalization effort being carried out in the Insurance sector. It is likely that the recent rally is tied to a potential fundraising in the company.
Current share price: N1.00
Opening 2020: N0.2
Year high: N0.22
Year low: N0.2
YTD return: 400%
Current earnings per share: N1.3
Stay-at-Home Stocks: Microsoft, Apple, Facebook surge after upbeat results from Netflix
The Nasdaq index had earlier hit a record high on hopes of impressive earnings later this week.
Nasdaq recorded impressive buying pressures with the so-called “stay-at-home” winners, including Facebook, Apple, and Microsoft, which rose after upbeat results from Netflix Inc recorded last week.
Netflix’s share price had earlier recorded impressive gains after it beat market expectation, powering the video streaming stock to close on the account that it added more customers than expected and revealed it no longer needed debt to build its entertainment empire.
- The positive upbeat guidance on free cash prompted bullish remarks from Wall Street analysts, though some questioned how much of the subscriber growth was pulled forward.
- The Nasdaq index had earlier hit a record high on hopes of impressive earnings later this week from the likes of Apple, Facebook, and Google, but the Dow Jones Industrial Average index, dominated by industrials and airlines, struggled to keep such bullish momentum.
That said, the U.S Equity market generally pulled back from its record highs in recent days, waiting to see if COVID-19 vaccines could reduce COVID-19 infection rates globally.
The Dow Jones Industrial Average fell by 0.12%, to settle at 30,960 pints; however, the S&P 500 gained 0.36%, to close at 3,855.36 points and the Nasdaq Composite added 0.69%, to settle at 13,635.99 points.
In a note, Stephen Innes, Chief Global Market Strategist at Axi, spoke on the bullish rally sighted in U.S based tech brands.
“One argument for the outperformance could be that tech enjoys low rates, so the fixed-income performance helps amid lockdowns. After all, in a foreshadowing effect, Netflix rose 16% last week after subscriber numbers soared by a record 37mn in 2020.
“Unsurprisingly, it seems lockdowns and TV go hand in hand and by extension, so does gaming and the use of cutting-edge software and hardware components.
“And with the bulk of Tech market cap (75%) reporting during the next two weeks, it’s clear investors like the pack’s heavyweight leaders instead of buy-the-laggards, leading to these eye-catching moves. And I’m not sure that logic doesn’t make sense.”
What to expect: But at some point, the stock bears might come back to haunt the stock market. There’s nothing in the investment world that’s quite like hitting a patch of black COVID-19 economic ice when traditional investing wisdom suggests the best offence is a good defence by taking your foot off the gas pedal as the most straightforward function of damage control.
United Capital Plc CEO purchases additional 1.3 million shares worth N7.19 million
United Capital Plc CEO has purchased an additional 1.3 million units of the firm’s shares worth N7.19 million.
The CEO of United Capital Plc, Mr. Peter Ashade has purchased an additional 1.3 million units of the firm’s shares worth N7.19 million, maintaining a 3-monthly buying streak.
This is according to a recent disclosure signed by the firm’s secretary, Leo Okafor, and sent to the Nigerian Stock Exchange market today, as seen by Nairametrics.
The recent deal which took place on the 22nd of January, 2021 saw the United Capital boss purchase an additional 1,330,613 units of the firm’s share at N5.40 per share, totaling N7, 185,310.2.
Nairametrics learned that the recent deal raises the total number of shares purchased by the CEO in the last three months by an additional 6,000,000 units.
What you should know
- Mr. Ashade earlier purchased additional 1.5million units of United Capital Plc shares, worth N8.03 million, as reported by Nairametrics.
- Nairametrics also reported the purchase of one million units of the United Capital Plc shares by its CEO.
- As of the time of reporting this, United Capital Plc share price currently trades at N5.40, down by 0.92%.
- The firm has a current market capitalization of N32.4 billion and 6million outstanding shares.
- The recent deal might be an indicator of strong investors’ confidence in the potentials of the firm.
Airtel, WAPCO, MRS rally up, investors gain N46 billion
The All Share Index gained 0.21% to close at 41,088.96 index points. Year to date return and market capitalization settled at 2.03%, and N21.49 trillion respectively
Nigerian Stocks ended the first trading session on a bullish note.
The All Share Index gained 0.21% to close at 41,088.96 index points. Year-to-date return and market capitalization settled at 2.03%, and N21.49 trillion respectively. Investors gain N45.49 billion.
- A total volume of 333 million units of shares, valued at N2.64billion exchanged hands in 5,640 deals. TRANSCORP (-5.26%) finished the most traded shares by volume at 48.9million, while ZENITHBANK (0.00%) topped by value at N418 million.
- Market breadth was however inverse of the broad index with 30 losers against 19 gainers. MRS (+9.82%) led the gainer’s chart today, while CILEASING (-10.00%) was the top loser.
- Performance across sectors was mixed; like Oil & Gas (-0.80%), Consumer Goods (-0.72%) and Insurance (-0.58%) closed in red, while the Industrial and Banking indexes improved by +0.54 and 0.49% respectively.
- MRS up 9.82% to close at N12.3
- JBERGER up 3.17% to close at N19.5
- WAPCO up 1.92% to close at N26.5
- DANGCEM up 0.85% to close at N236
- AIRTELAFRI up 0.38% to close at N855
- CILEASING down 10.00% to close at N5.13
- ARDOVA down 9.78% to close at N18.45
- INTBREW down 6.53% to close at N6.16
- NASCON down 5.81% to close at N16.2
- UNILEVER down 2.22% to close at N13.2
Nigerian Bourse recorded an impressive winning streak this week as some NSE30 stocks including, AIRTELAFRI, DANGCEM, WAPCO triggered the upward run on Monday’s trading session.
- The Nigerian Stock market advance to close in positive territory as buying interest was seen on stocks across the board.
- Nairametrics however, envisages cautious buying, amid improved market conditions in Nigeria’s financial market.