The Nigerian equity market ended the month of November positive, as the All-Share Index (ASI) gained 2.88% for the month, starting at 42,038.60 basis points and ending at 43,248.05 basis points.
The market capitalization also grew in similar fashion from N21.9 trillion at the beginning of the month, only to end the month trading N22.6 trillion, representing a 2.86% 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:
University Press PLC (UPL) 35.48%
UPL is one of the oldest publishers of materials for educational and general reading. The company is engaged in the business of printing, publishing and selling of books in areas of educational and general titles.
Its share price has been the top gainer for two consecutive months, having gained 76.42% in October. The company claims to have an effective coverage of the country and the West Africa sub-region through the strategic location of its Area Offices, Depots, Showrooms and a number of representatives in major cities and towns nationwide and in Accra, Ghana.
Its second quarter 2021 report recorded a revenue of N1.57 billion, which represents a 13.35% gain YoY. After the deduction of cost of sales, which stood at N644.5 million, the gross profit of the firm stood at N924.9 million, a 14.84% gain YoY. However, ultimately, its PAT stood at N243.8 million, a 38.16% decline YoY.
For the month of November, the company’s share price grew by 35.48%, from N2.17 at the beginning of the month to N2.94 at the end of the month.
The company has shares outstanding of 431,409,504 units and a total market capitalization of N1,268,343,941.76, using the current market price, as of yesterday’s close, of N2.94.
Airtel Africa PLC (AIRTELAFRI) 21.79%
Airtel Africa is one of the biggest telecommunications companies in Nigeria and Africa as a whole. The company provides telecommunications and mobile money services in 14 countries in Africa, primarily in East, Central and West Africa.
For the month of November, the company’s share price has ranked among the top 3 gainers, appreciating 21.79% from N780 at the beginning of the month to N950 at the end of the month.
Earlier in the month, Airtel Africa Plc announced that it had obtained an approval-in-principle to launch its payment service arm in Nigeria, known as SMARTCASH Payment Service Bank Limited. However, according to a statement signed by the Group’s Secretary, Simon O’Hara, and filed with the Nigerian Exchange Limited (NGX), the final approval is subject to the firm satisfying certain standard conditions within six months.
Also in November, the company announced that its subsidiary, Airtel Mobile Commerce Nigeria Limited, had been granted approval in principle by the Central Bank of Nigeria (CBN) to operate as a super-agent in Nigeria.
The super-agent license should not be confused with the Payment Service Bank (PSB) license earlier received by the company. According to the company secretary, the PSB license is required for Airtel to be able to provide financial services in Nigeria such as accepting cash deposits and carrying out payments and remittances, issuing debit and prepaid cards, operating electronic wallets and rendering other financial services. While the super-agent license will enable the company to create an agent network that can service the customers of licensed Nigerian banks, payment service banks and licensed mobile money operators in Nigeria.
The company has shares outstanding of 3,758,151,504 units and a total market capitalization of N3,570,243,928,800.00, using the current market price of N950.
LivingTrust Mortgage Bank PLC (LIVINGTRUST) 20.00%
LivingTrust Mortgage Bank Plc, formerly Omoluabi Mortgage Bank Plc, is a financial services institution in Nigeria offering banking products and services for the retail, commercial and corporate sectors. The company was founded in 1993.
It specializes in mortgage financing and provides products which include national housing fund mortgage loans, commercial mortgages, property acquisition loans and loans for the business, construction and trading sectors.
For the month of November, the company’s share price grew by 20.00%, from N0.80 at the beginning of the month to N0.96 at the end of the month.
The company had an extraordinary general meeting on the 25th of October and concluded that the directors of the company were authorized to raise capital. The disclosure to the NSE reads, “the Directors be and are hereby authorized to raise capital whether by way of rights issue, an offer for subscription, special placing, private placement, or other methods or combination of methods, additional capital by way of issuance of ordinary shares, preference shares, mergers and acquisition, convertible or non-convertible loans, stocks, medium-term notes, bonds or other securities, in such tranches, series or proportions, at such coupons or interest rates within such maturity period and on such terms and conditions, including the provision of security for repayment, as the Directors may deem fit or determine, subject to obtaining the requisite regulatory approvals.”
The disclosure concluded by stating that the raised capital would be used to recapitalize the bank and obtain a National Mortgage Banking License from the CBN.
The company has shares outstanding of 5,000,000,000 units and a total market capitalization of N4,800,000,000.00, using the current market price of N0.96.
Other stocks with significant appreciation include:
- VITAFOAM 18.38%
- HONYFLOUR 9.72%
- ABCTRANS 9.68%
On the decliners side, we have CUTIX losing 55.40% leading the charge. This is followed by UPDC and AIICO losing 40.56% and 33.06% respectively.
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