The Nigerian equity market ended the month of September positive as the All-Share Index (ASI) gained 2.65% for the month starting at 39,184.18 basis points and ending at 40,221.17 basis points.
The market capitalization also grew in a similar fashion from ₦20.4 trillion at the beginning of the month to ₦20.9 trillion on Thursday, September 30, 2021, representing a 2.64% gain.
These gains would not have been possible without stellar stock price performances from these top gainers, which gave the market an edge. These stocks include are highlighted below.
Axamansard Insurance Plc (MANSARD) – 170.93%
MANSARD operates in the financial services sector, specifically dealing in the insurance subsector. The company is a member of the AXA Group, one of the leading insurance and asset management groups with 166,000 employees serving 107 million clients in 64 countries. The company recently underwent a share restructuring that took effect towards the end of September. In fact, the share restructuring is the reason for the massive appreciation in price.
At an extraordinary general meeting held on the 7th of December 2020, the shareholders of the company agreed to a share reconstruction. On the 9th of September 2021, the trading of MANSARD shares was suspended in order to effect the share reconstruction from a nominal share value of ₦0.50 to ₦2.00. The shares of MANSARD resumed trading on the 27th of September, opening on the trading day at ₦3.32.
For the month of September, the company’s share price grew by 170.93%, from ₦0.86 at the beginning of the month to ₦2.33 at the end of the month.
The company has shares outstanding of 9,000,000,000 units and a total market capitalization of ₦20,970,000,000.00, using the current market price, as of Thursday’s close, of ₦2.33. According to Bloomberg, the company’s P/E ratio stands at 5.22, Earnings Per Share at 0.45 and dividend yield at 9.57%. The company so far has paid a dividend of ₦0.055 in May 2021.
Pharma-Deko Plc (PHARMDEKO) – 45.06%
Pharma-Deko Plc operates in the Healthcare sector of Nigeria, specializing in the manufacturing and marketing of pharmaceutical & consumer products. The company is divided broadly into three (3) divisions: The pharmaceutical business group, consumer business group and contract manufacturing group. The company is known to be the first to research, develop and manufacture a SUGAR-FREE CREAM SODA, a healthy drink targeted at high net-worth individuals in addition to its Pharmaceuticals in 1995.
For the month of September, the company’s share price has ranked among the top 3 again as it did in August, where it grew by 48.62%. PHARMDEKO comes 2nd as opposed to its 3rd spot in August, appreciating 45.06% from ₦1.62 at the beginning of the month to ₦2.35 at the end of the month.
A major reason for the recent appreciation in price is its financial performance. Its Q2 2021 results revealed significant appreciation in top-line items on the income statement. The company generated a revenue of approximately ₦312 million in the first half of the year which represents a 125% appreciation compared to the first half of 2020. However, the company generated a loss of ₦8.3 million, which is significantly better than the loss generated in the first half of 2020, which stood at ₦177 million. The loss made is attributable to administrative expenses which took approximately ₦86 million.
The company has shares outstanding of 216,820,448 units and a total market capitalization of ₦509,528,052.80, using the current market price of ₦2.35. According to Bloomberg, the company’s Earnings Per Share currently stands at -1.49. Its share price is up 8% Year-to-Date (YtD).
Nigerian Aviation Handling Company Plc (NAHCO) – 27.66%
NAHCO operates in the service sector of the economy as it provides transport-related services. The company is one of the major players in the ground handling service sector of the nation’s air transport industry, with a presence in all the major Nigerian airports. Their services include ground handling, ramp services, cargo handling, passenger service, station management, protocol service, aviation training and road feeder service.
For the month of September, the company’s share price grew by 27.66%, from ₦2.82 at the beginning of the month to ₦3.60 at the end of the month. The company’s second-quarter 2021 financial highlights revealed outstanding growth in top-line items on the income statement. The company generated a revenue of approximately ₦4.7 billion in the second quarter of the year which represents a 31.76% growth compared to the second quarter of 2020. The company posted a gain in operating profit of ₦723.5 million in the second quarter of the year, compared to the loss of ₦282.8 million made in the second quarter of 2020. The company became profitable as it bounced back from the pandemic induced loss of ₦143.2 million to currently stand at gains of approximately ₦504.9 million.
NAHCO has shares outstanding of 1,624,218,750 units and a total market capitalization of ₦5,847,187,500.00, using the current market price of ₦3.60. According to Bloomberg, the company’s P/E ratio stands at 5.36, Earnings Per Share at 0.67 and dividend yield at 3.55%. The company so far has paid a dividend of ₦0.13 in July 2021.
Other stocks with significant appreciation include:
UCAP – 24.65%
OANDO – 17.23%
NNFM – 17.12%
On the decliners side, we have SCOA losing 39.58% leading the charge. This is followed by LASACO and NPFMCRFBK losing 14.39% and 13.16% respectively.
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