Despite a pessimistic start to the year, the NGX’s performance has been influenced by macroeconomic factors that have impacted retail and institutional investing as well as foreign direct investments.
After Monday trading, the NGX ASI closed at 43,270.94 index points, reflecting a decline of 0.09% from the previous trading day and a return of 7.45% for the Year-to-Date (YTD) period. In the meantime, the market capitalization decreased by N19.49 billion
However, the steady corporate earnings and tighter foreign exchange liquidity have sustained the rally by Nigerian equity markets relatively. Foreign portfolio investors’ participation in the Nigerian market has increased by almost three-quarters.
Foreign investment in the Nigerian equity market surged by 74.2% in October 2021 with inflows and outflows almost equal; a significant improvement from a long-running deficit between inflows and outflows.
In spite of growing insecurity, rising food prices, and economic hardship, some Nigerian stocks seem immune to the reality of the Nigerian economy, thereby, performing remarkably. Below are a few of them:
LivingTrust Mortgage Bank
The fast-growing Nigerian Mortgage entity posted a 3-month return of 42% on the back of record profits, leveraging on digital services.
It appears that the stock is fired up relatively after it posted a profit after tax of N533.3 million for the nine months period of 2021, a 372% rise against the N112,92 million recorded in the corresponding period of 2020.
In 2020, the bank changed its name from Omoluabi Mortgage Bank to Livingtrust Mortgage Bank as a result of Cititrust Holdings Plc’s investment in the firm. This has been attributed to the outstanding performance in the bank’s operation.
As a result of the bank’s rapid growth within a very short period of time and the need to adopt a multi-channel approach to customer service, the new mobile application and corporate website are deemed necessary.
As a result of signing a long-term credit agreement with the European Investment Bank (EIB), the blue coloured bank posted a 55% performance over the last three months.
With this facility, the Ecobank Group and EIB confirm their joint support for business investment across Africa, with a focus on the sectors most affected by the COVID-19 pandemic.
The banking stock has not paid out dividends for many years, yet it is trading close to its 52-week high of N8.90 while posting a 28% yearly return.
The tier-1 bank’s stock is increasingly jostling for investors’ attention as it reports a 59% performance over the past three months
With a yearly return of 75% and a dividend yield of 3.78%, Nigeria’s oldest bank is trading slightly below N12 after Monday’s trading session
Following the announcement that billionaire Femi Otedola had acquired a 5.07% stake in the company, its ownership structure has changed.
AIICO Insurance Plc
The risk underwriting and related financial services company posted a 3-month return of 79%. The company operates through different business divisions: Life Insurance, Non-Life Insurance, Health Insurance, Pension Management, and Wealth Management.
With a yearly return of about 93%, the 36.6-billion-naira company is trading close to its 52-week high of 76 kobo at the moment.
As AIICO Insurance Chief Executive Officer, Mr. Babatunde Fajemirokun, disclosed at the launch of AIICO Express, a one-stop mobile application for agents, investors are increasingly exposed to the stock’s digital transformation.
University Press Plc
The company is Nigeria’s largest indigenous book publisher, with a gain of 143% over the past three months. Stocks are trading at 52-week highs amid record-buying pressures, with Africa’s largest economy and young demographics further boosting the stock’s upsides.
According to Bloomberg, the Ibadan-based company has accrued a yearly return of 117%, with earnings per share currently standing at 0.92.
*Data source: TradingView and Bloomberg data