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Consumer Goods

NSE CGI falls by 3.71% in March as Nestle, NB, and PZ shares decline

The NSE Consumer goods index shed a total of 20.91 index points in March.

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Consumer goods index contracts by 1.46%, retracing the previous week’s gains by 67%

The Nigerian Stock Exchange Consumer Goods Index (CGI), an index that tracks the performance of consumer goods companies, depreciated by 3.71% in the month of March following sustained sell down in the shares of listed consumer goods companies on the NSE.

A review of the performance of the index revealed that as of the close of trading activities on Wednesday 31st March 2021, the index stood at 542.94 index points, from 563.85 index points at the open of trade for the month.

In line with this, the Consumer Goods Index shed a total of 20.91 index points to print the second decline in two months, as wary investors offloaded shares of top consumer goods, leading to the decline in the shares of Nestle, Nigerian Breweries, PZ, Dangote Sugar and eight (8) others.

This is the first time the index would print a two-month consecutive decline since February 2020.

What you should know

  • The NSE Consumer goods Index was designed to provide an investable benchmark to capture the performance of companies in the consumer goods sector. The index comprises the most capitalized and liquid companies in food, beverage, and tobacco.
  • The index is based on the market capitalization methodology, as it tracks the performance of fifteen consumer goods companies on the Nigerian Stock Exchange which includes, Nestle, Nigerian Breweries (NB), Dangote Sugar, and Flour Mills.
  • The overall performance of the companies was bearish, as the index closed on a negative note in the month of March with 13 losers relative to 2 gainers.
  • NNFM (-11.68%) led the losers’ chart, while GUINNESS (+47.07%) was the top gainer in the month of March, followed by VITAFOAM (+7.10%).

Top Gainers

  • GUINNESS up by 47.07% to close at N33.90.
  • VITAFOAM up 7.10% to close N8.30.

Top Losers

  • NNFM down by 11.68% to close at N6.20.
  • CHAMPION down by -10.71% to close at N2.25.
  • PZ down by 8.49% to close at N4.85.
  • NB down by 6.73% to close at N48.50.
  • DANG SUGAR 5.56% to close at N17.00.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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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.

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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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Consumer Goods

Consumer goods index gains 6.16 points, driven by gains in Nestle, Flourmills and Honeywell shares

The NSE Consumer goods index gained 6.16 index points following gains in the share prices of Nestle, Flourmills and Honeywell.

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EFG Hermes, Impact of COVID-19 pandemic on consumer packaged goods in Nigeria

The Nigerian Stock Exchange Consumer Goods Index (CGI), a market index that tracks the performance of consumer goods companies, gained a total of 6.16 index points, to close the first week of active trading in April at 556.03 index points following the gains in the shares of Nestle, Flour Mills of Nigeria and Honeywell Flour Mills.

A preview of the index performance for the week revealed that at the close of trading activities on Friday 9th of April 2021, the NSECG index appreciated by 1.12% to close the week higher at 556.03 index points, from 549.87 index points at the open of trade for the week.

In line with this, the index gained a total of 6.16 index points at the close of trade for the week.

READ: Three consumer goods stocks that beat Nigeria’s 17.33% inflation rate

The index performed better when compared to the market index, noting that the All-Share Index and the market capitalization depreciated by 0.13%, to close the week at 38,866.39 and N20.335 trillion respectively.

READ: Flour Mills shares surge by 6.9%, lifting the miller’s capitalization by N8.2 billion

What you should know

  • The NSE Consumer goods Index was designed to provide an investable benchmark to capture the performance of companies in the consumer goods sector. The index comprises the most capitalized and liquid companies in food, beverage, and tobacco.
  • The index is based on the market capitalization methodology, as it tracks the performance of fifteen consumer goods companies on the Nigerian Stock Exchange which includes, Nestle, Nigerian Breweries (NB), Dangote Sugar, and International Breweries.
  • The overall performance of the companies was relatively bullish, as the index closed on a positive note, 6.16 index points higher.
  • FLOURMILLS (6.90%) led the gainers’ chart, followed by HONYFLOUR (4.24%), while GUINNESS (-17.27%) topped the losers list, followed by CADBURY (-3.03%).

READ: PZ Cussons shares lose N3 billion in three sessions on NSE

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Top gainers

  • FLOURMILLS up by 6.90% to close at N31.00.
  • HONYFLOUR up by 4.24% to close at N1.23.
  • NESTLE up by 3.27% to close at N1420.

Top losers

  • GUINNESS down by -17.27% to close at N29.70.
  • CADBURY down by -3.03% to close at N8.00.
  • INTBREW down by -1.72% to close at N5.70.
  • CHAMPION down by -1.33% to close at N2.22.

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