It is no longer news that the performance of the Nigerian Stock Exchange – the world’s best-performing stock market for 2020 – was disappointing in the first quarter of 2021.
Despite a positive annual reporting season which provided investors with the opportunity to earn remarkable dividend from some top-performing companies, compared to the less risky government fixed-income market, the NSE All-share index closed the first quarter of 2021 in red, as a result of sustained sell-offs in the market, driven by the rising yield in the fixed income space.
Despite this poor outing which impacted on the performance of key consumer goods listed on the NSE, some consumer goods companies saw their shares surge by more than 50% within 97 days of 2021. Some of these shares are:
Champion Breweries Plc (CHAMPION), 158% YTD GAINS
The brewery stock is one of the best-performing stocks on the NSE, with YTD gains in excess of 155% in less than 96 days of 2021.
The medium capitalized brewery stock has lost more than half of its value when compared with its 52-week high price of N4.13. In recent times, the shares of the company have dropped down to a low of N1.68, presenting bargain hunters with an upside potential of about 55% should Heineken launch a takeover bid of N2.60 per share.
This expectation looks reasonable, as Heineken acquired 24.3% of the total issued shares of the brewer at N2.6 per share in the second week of the new year, while the news of the acquisition saw the shares of Champion Breweries surge by more than 350% in less than a month.
At N2.20 per share, the shares of Champion Breweries present investors with a slim 18.8% upside potentials, should Heineken launch a takeover bid of N2.60 per share.
Guinness Nigeria Plc (GUINNESS), YTD 74%
The stock of one of the leading brewers on the NSE, Guinness Nigeria Plc has been on the rise in recent times.
The impressive 74% surge in the shares of the famed producer of Guinness Stout can be attributed to investors buying interest in the shares of the brewer.
The buying interest (driven by the expectation of a sustained reopening of the on-trade channel as restaurants and bars reopen) has seen the shares of the company gain about 74% year-to-date.
In line with this, the market capitalization of the brewer has increased by about N31 billion since the beginning of 2021. At the close of the market today, the market capitalization of Guinness was valued at N72.8 billion.
McNichols Plc (MCNICHOLS), YTD GAINS 57%
McNichols Plc, an indigenous fast-moving consumer brand, with a market capitalization of N261 million, has seen its shares increase by more than 57% since the year started, despite being a small-cap stock.
The company has witnessed tremendous buying interests from investors who see great value in the underlying operations of the consumer goods company.
The shares of McNichols since the beginning of this year have increased by a whopping 57%, with the shares rising from N0.51 per share on December 31st, 2020, to N0.80 per share.
Shares of the company since its migration to the NSE Growth Board on the 30th of November 2020, have surged by about 60%, from N0.50 to N0.80.