The Nigerian equity market rebounded from March’s marginal decline of 0.91% as strong earnings report from participating companies has further continued the bullish trend the market has been experiencing since the start of 2022, despite the global macro-economic worries as a result of the Russian–Ukraine war.
The All-Share Index (ASI) for the month of April, gained by 5.69% starting at 46,965.48 basis points to end the month at 49,638.94 basis points, a 13-year high. The market capitalization also gained in a similar fashion from N25.3 trillion at the beginning of the month, to end the month trading at N26.8 trillion, also representing a 5.72% gain, trading at an All-Time High (ATH).
These magnificent gains were made possible as a result of the stellar performance of these top gainers. These stocks include:
MEYER PLC (MEYER) 354.55%
Meyer Plc (previously DN Meyer) is a manufacturer and marketer of paints. Meyer Plc is an offshoot of the former Hagemeyer Nigeria Limited, the manufacturer of Sigma Paints and Cosmetics. The company is known for producing and manufacturing different types of paints for a wide variety of use which includes architectural paints, wood paints, auto refinishes, industrial and marine, road lining paints, roof coatings, tube coatings, hp coatings and adhesives.
- The rally in its share price came after the company released its audited financial report for the year 2021. The report revealed a significant increase in its revenue which it was able to grow by 35.10% from N827.6 million to N1.12 billion Year-on-Year. Notably, the company’s profit after tax (PAT) declined by approximately 97% from N1.12 billion in 2020 to N33.7 million in 2021.
- The reason for the significant decline is because the company did not dispose of any buildings in 2021. In 2020, the company recorded a profit of approximately N1.8 billion from the disposal of one of its buildings. This outlier proved to have a significant impact on the company’s top-line items. Taking away the disposal, the company would have been able to post a loss (loss before tax) of N143.45 million in 2020.
- For the month of April, the company’s share price grew by 354.55%, from N0.66 at the beginning of the month to N3.00 at the end of the month. In fact, the stock price is currently trading at its 52-week high.
- The company has shares outstanding of 531,237,723 units which put its total market capitalization at N1,593,713,169.00, using its current market price as of Friday’s close. MEYER now ranks #1 on the NGX in terms of year-to-date (YtD) performance as its share price has gained 552.17%.
NIGERIAN AVIATION HANDLING COMPANY PLC (NAHCO) 52.56%
NAHCO is one of the major players in the ground handling service sector of the nation’s air transport industry, with presence in all the major Nigerian airports. Since the company was founded in December 1979, it has since grown into a multi-billion Naira company with diversified investments in energy, logistic and development of a Free Trade Zone Company.
- The uptick in its share price began when its audited financial statement was released on the last day of March 2022. The report revealed a stellar performance from the company as it was able to grow its revenue by 43.60% from N7.2 billion in 2020 to N10.2 billion. The growth in its revenue was majorly attributable to the growth seen in passenger/aircraft handling.
- Although the firm recorded a drop in other income by 53.88%, the company was still able to record a 120.17% growth in operating income from N478 million in 2020 to N1.05 billion in 2021. Ultimately, the firm recorded a PAT increase of 155.39%, from N302 million to N771.6 million.
- For the month of April, the company’s share price grew by 52.56%, from N3.90 at the beginning of the month to N5.95 at the end of the month. In fact, the stock price is currently trading near its 52-week high of N6.
- The company has shares outstanding of 1,624,218,750 units which put its total market capitalization at N9,664,101,562.50, using its current market price as of Friday’s close.
NIGERIAN BREWERIES PLC (NB) 41.16%
Nigerian Breweries Plc is the largest brewing company in Nigeria that serves the Nigerian market and West Africa as a whole. The company recorded a landmark when the first bottle of STAR lager beer rolled out of its Lagos Brewery bottling lines in June 1949. Since the introduction of Star, the company has expanded its portfolio by introducing a wide range of Non-Alcoholic, Stout and Spirit Drinks. The firm currently produces Over 20 brands of drinks which are enjoyed locally and globally.
- A significant jump in the price came after its unaudited first quarter 2022 financial statement was released. The report revealed a stellar performance from the company as it was able to grow its revenue by 30.37% from N105.7 billion in 2020 to N137.8 billion, as the demand for brewery products increased compared to the previous quarter.
- Although the company significantly increased its marketing and distribution expenses by 62.28%, it was still able to record a 63.72% growth in operating income from N14.50 billion in 2020 to N23.7 billion in 2021. Ultimately, the firm recorded a PAT increase of 77.73%, from N7.66 billion to N13.6 billion.
- For the month of April, the company’s share price grew by 41.16%, from N40.45 at the beginning of the month to N57.1 at the end of the month. The firm is trading near its 52-week high of N60.
- The company has shares outstanding of 8,075,831,900.00 units which put its total market capitalization at N461,130,001,490.00, using its current market price as of yesterday’s close.
Other stocks with significant appreciation include;
- OANDO 30.71%
- GUINNESS 30.62%
- UPDC 30.49%
On the decliners side, we have NPFMCRFBK losing 20.48% leading the charge. This is followed by CWG and SCOA losing 18.52% and 18.49% respectively.
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