The top 30 companies listed on the Nigerian Stock Exchange (NSE) known as the NSE-30 have lost a total of N1.13 trillion in market capitalization year to date.
The elite list, which consists of the top 30 companies in terms of market capitalization and liquidity, recorded a decline of 6.66% in market capitalisation from N17.00 trillion recorded as of 31st December 2020 to stand at N15.87 trillion as of 12th March 2021.
According to data obtained from the Nigerian Stock Exchange, the NSE-30 companies currently account for 78.47% of the total market capitalization (N20.22 trillion).
Meanwhile, only 8 companies recorded positive growth year to date, while others recorded a decline in the review period, with exception of 11 Plc (formerly Mobil), which maintained its initial value.
The gainers in the period under review include Seplat (+34.23%), Guinness (+23.68%), Flour Mills (+14.23%) while the highest losers are Sterling Bank (-24.51%), UBA (-17.34%), and Ecobank Transnational Incorporation (-14.17%).
Sterling Bank Plc, lost a total of N14.39 billion between December 31st, 2020 and 12th March 2021.
- The loss represents a decline of 24.52% to stand at N44.34 billion from an initial market capitalisation of N58.73 billion.
- According to the unaudited financial report for the year 2020, Sterling Bank grew its profit after tax by 10.3%, posting a profit of N11.69 billion in 2020.
United Bank for Africa, also recorded a decline of 24.51% in market capitalization year to date to stand at N244.53 billion as of 12th March 2021.
- Investors of the banking giant lost a total of N51.3 billion in the period under review.
- Meanwhile, UBA posted a profit after tax of N113.8 billion in 2020 according to the audited full-year report for the year 2020.
- The profit after tax posted in 2020, represents a 27.7% increase compared to N89.1 billion recorded in the previous year.
Ecobank Transnational Incorporation followed closely with a decline in market capitalisation by 14.17% in the review period.
- A total of N15.6 billion was lost by investors of the banking giant between December 31st, 2020 and March 12, 2021.
- Ecobank also posted a decline in profit for the year 2020, recording a year-on-year decline of 64% to stand at N35.9 billion compared to N99.46 billion recorded in 2019.
Seplat Petroleum Development Company Plc gained the highest in the period under review as the stock price grew by 34.23% from N402.3 recorded on the last trading day of 2020 to N540 as of 12 March 2021, leaving its total market capitalisation at N317.8 billion.
- The company’s shares grew by double figures despite the N30.71 billion loss recorded in its 2020 financial year.
- Although the reason for this increase cannot be exactly established, it can be associated with the recovery of oil prices to pre-pandemic levels.
- Seplat also successfully raised US$260 million in debt to fund the completion of its ANOH Gas Processing Plant (“ANOH”). It is expected that this plant will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.
Guinness Nigeria Plc, gained a total N9.86 billion between the period under review, representing an increase of 23.68%.
- The company’s market capitalisation increased from N41.62 billion recorded as of December 31st, 2020 to N51.47 billion as of 12th March 2021.
- Guinness recorded impressive growth in the Stock market despite the N317.42 million loss the Group posted in its Q2 2020 results released on 28 January 2021.
Flour Mills Nigeria Plc, followed with a gain of 14.23% to stand at N121.78 billion as of March 12th, 2021.
- Investors of Flour Mills gained a total of N15.17 billion in the period under review from N106.61 billion recorded as of the end of 2020.
The decline in the stock value of the elite companies could be attributed to sell-offs recorded generally in the Nigerian Stock Exchange, evident in the year-to-date decline of the All-Share index (4.03%), while the NSE-30 index has also dipped by 6.37% in the review period.
Nigerian stocks that outperformed Bitcoin, Ethereum and Cardano in April
According to data tracked on the NSE, the shares of Japaul Gold and Ventures Plc, Meyer Plc and University Press Plc delivered better returns than Bitcoin, Cardano, Ethereum.
The recent crypto-mania has presented investors who are nervous about the stock market with key opportunities to capitalize on, through alternative investments in cryptocurrencies.
The attendant effect of this led to the move which saw the total market capitalization of Bitcoin, Ethereum, Litecoin, XRP and other crypto assets surge above the $400 billion mark in Q4 2020 to more than $2 trillion in recent times – the total market capitalization of all cryptocurrencies are valued at about $1.74 trillion as of the time of drafting this report.
Despite the gains Bitcoin, Ethereum and Cardano delivered to their holders, the market performance of these digital assets since the beginning of April has been comparatively unimpressive. Of the three cryptocurrencies, only Ethereum maintains month to date gains in excess of 15%, while the month to date losses in others stand in excess of 12%.
The performance of these digital assets so far in April
Data tracked on Binance, a cryptocurrency exchange that provides a platform for trading various cryptocurrencies revealed that Ethereum’s month to date gains in the month of April is put at about 15% while the month-to-date loss of Bitcoin and Cardano is put at about 16% and 12% respectively.
Stocks on NSE delivered decent returns in the month of April, outperforming some cryptos. Some stocks on the Nigerian Stock Exchange have delivered impressive returns for their holders in the month of April, despite the recent lacklustre state of key shares listed on the exchange.
According to data tracked on the Nigerian Stock Exchange, the shares of the following companies have delivered better returns than Bitcoin, Cardano, Ethereum and some other cryptocurrencies so far in this month.
Japaul Gold and Ventures Plc
(JAPAULGOLD), MtD gains: 46.83%
The rebranded and restructured mining company with a key focus on gold and other solid minerals exploration is the best-performing stock on NSE this month with a month to date gain of about 46.83%.
Despite the fact that the stock is currently trading slightly below its open price of N0.62 per share for the year, it has risen from a YTD low of N0.41 to the current N0.60 per share price in recent times. Thus returning a gain of 46.8% for its holders.
Meyer Plc (MEYER)
MtD gains: 29.16%
The shares of the key player in the paint and decorative industry increased from N0.41 per share at the open of trade this month, to N0.53 per share as of the open of market this morning, to print a month to date gain of 29.16%.
The stock of the paint manufacturer is presently trading about 6% higher than its open price of N0.50 per share for the month of April.
University Press Plc (UPL)
MtD gains: 19.77%
The shares of one of Nigeria’s foremost publishers of educational and general reading materials, University Press Plc have increased from N1.07 per share at the close of trade on the 31st of March, to N1.28 per share at the open of trade on the Nigerian Stock Exchange today.
The recent surge in the shares of the company was triggered by buying interest on the floor of the exchange and this renewed interest in the shares of the publisher has seen its shares return an impressive 19.77% month to date gains to investors since the start of this month.
What you should know
- The Nigerian Stock Exchange All-share Index “NGX ASI” is on course to deliver its first weekly gains after weeks of consistent depreciation in the market index and capitalization.
- This decent performance can be linked to the renewed buying interest in the shares of some key companies with impressive fundamentals as Q1 2021 financial results start to trickle in.
Biden’s capital gains tax disturbs Wall street
The Dow Jones Industrial Average fell 321.41 points to 33,815.90, or 0.92%.
Following news that President Joe Biden is planning to propose far higher capital gains taxes for the wealthy, Wall Street sank sharply on Thursday. The Dow Jones Industrial Average fell 321.41 points to 33,815.90, or 0.92%. The blue-chip index fell 420 points at its lowest point for the day. The S&P 500 lost 0.94 percent of its earlier gains to close at 4,134.98, while the Nasdaq Composite fell 0.94 percent to 13,818.41.
Bloomberg News announced Thursday afternoon that Biden is considering raising the capital gains tax rate for rich Americans to as much as 43.4 percent. The measure would increase the capital gains tax threshold on people with $1 million or more to 39.6 percent, up from the existing rate of 20%.
- The Stoxx Europe 600 Index advanced 0.7% while the MSCI All-Country World Index declined 0.2%.
- Capital gains plan does not exempt crypto as Bitcoin fell for the sixth time in seven days, widening losses. If investors keep the cryptocurrency for longer than a year, they will be subject to capital gains tax.
- Growth stocks led the intraday downturn on Thursday, with shares of Tesla and Amazon sliding 3.3 percent and 1.6 percent, respectively, as a result of higher capital gains taxes. The iShares S&P 500 Growth ETF fell 1%, outperforming its value counterpart.
- Equifax up 15.06% to close at $221.64.
- Tractor Supply up 4.43% to close at $188.14.
- AT&T up 4.15% to close at $31.36
- Arconic up 3.67% to close at $27.43
- Danaher up 3.43% to close at $252.79
- Huntington Bancshares -6.71% to close at $14.46
- Dow down -6.01% to close at $60.92
- LyondellBasell Industries down -5.66% to close at $102.00
- Micron down -5.34% to close at $84.71.
- Nucor down -5.08.% to close at $76.11
- Long-term buyers will see a significant cost spike as a result of this tax increase. If investors believe the plan has a chance of becoming law next year, they may be expected to sell this year.
- Some analysts believe that it may be difficult to pass the bill into law in the senate.
Nairametrics advises cautious buying in this era of growing uncertainties.
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- Stanbic IBTC profit plunges by over 45% to N11.3 billion in Q1 2021.
- Nigerian Breweries Plc grows profit by 39% to N7.7 billion in Q1 2021.
- Trans Nationwide Express Plc profit after tax slumps by over 95% in Q1 2021
- FCMB approves FY 2020 dividend pay-out of N2.97 billion to shareholders.
- Africa Prudential Plc posts profit after tax of N381.35 million in Q1 2021.