The Nigerian equity market is now on its second consecutive month of decline as it posted a negative performance in the month of July 2022. This is as the Central Bank of Nigeria increased the MPR rate in those two months by 250 basis points, indicating that investors are taking a flight away from risky asset to find safe havens in a bid to hedge against double digit inflation.
In July, the All-Share Index (ASI) for the month, lost 2.79% starting at 51,817.59 basis points to end the month at 50,370.25 basis points. The market capitalization also lost in similar fashion from N27.94 trillion at the beginning of the month, to end the month trading at N27.16 trillion, also representing a 2.77% loss. Despite the loss seen, some stocks still posted monthly gains. These stocks include:
ACADEMY PRESS PLC (ACADEMY) 45.67%
ACADEMY is an established printing company in Nigeria offering services for the printing of labels, calendars, company annual reports, books, magazines and marketing material. The company offers additional printing-related services which include the supply of graphic material, layout design, typesetting, artwork, photography, colour separation and binding.
The company has two major subsidiaries; Academy Press Specialized Print Services, which prints documents with high-security risks such as tickets, coupons, vouchers, letterheads, receipts, invoices and continuous forms for computer usage as well as bank statements, pay-in slips and bank notes and West African Book Publishers (WABP) prints high-end publications for the discerning reader. The company has offices in Lagos, Abuja, Nigeria, and Accra in Ghana.
The uptick in its share price looks to be a bullish reaction to the company’s audited statement for 2022 released at the beginning of July. The report revealed a stellar performance from the company as it was able to grow its revenue by 145% from N1.67 billion in 2021 to N4.11 billion in 2022. The growth in its revenue was majorly attributable to sales of books and dairies.
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Although the firm recorded an increase in its cost of sale by over 100%, the company was still able to record a 415% growth in gross profit income from N171 million in 2021 to N881 million in 2022. Ultimately, the firm recorded a positive PAT of N174 million as opposed to the loss of N205 million in 2021.
For the month of July, the company’s share price grew by 45.67%, from N1.27 at the beginning of the month to N1.85 at the end of the month.
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The company has shares outstanding of 604,800,000units which puts its total market capitalization at N1,118,880,000.00, using its current market price as of Friday’s close.
THE INITIATES PLC (TIP) 20.00%
The Initiates Plc is a professional waste management company in Nigeria offering services for waste management, industrial cleaning and decontamination for the private and public sectors. The company touts to have a multi-disciplinary and flexible workforce structure that is functional in a wide range of work environments and driven by innovation, excellence and commitment.
TIP began the year with a share price of N0.37 and has since gained 29.7% on that price valuation, ranking it 21st on the NGX in terms of year-to-date performance. The firm is the 120th most traded stock on the Nigerian Stock Exchange over the past three months. TIP has traded a total volume of 510,400 shares, in 6 deals, valued at N220,576 over the period, with an average of 8,102 traded shares per session. A volume high of 200,000 was achieved on June 10th for the same period.
For the month of July, the company’s share price grew by 20.00%, from N0.40 at the beginning of the month to N0.48 at the end of the month. The stock price is currently trading at its 52-week high as of Friday’s close. The company has shares outstanding of 889,981,552 units which puts it total market capitalization at N427,191,144.96, using its current market price.
JOHN HOLT PLC (JOHNHOLT) 18.67%
John Holt Plc assembles, sells, leases and services power and cooling equipment in Nigeria and has business interests in the energy, infrastructure and construction sectors. The company sells, leases and maintains Holt Star air conditioners for home and industrial use; sells, installs and maintains diesel generators; provides after-sales service and spare parts for its product range; and supplies fire and safety equipment and services.
John Holt Plc has business interests in warehousing and inventory management, facility management, property development and the construction of glass reinforced plastic boats. Other business interests include construction and maintenance of power projects, supply of power equipment such as transformers, hybrid generators, gas generators and pre-pad meters, and providing services to the power sector which includes power plant management, energy audits, capacity building, technical training and power system redesigns.
John Holt began the year with a share price of N0.72 and has since gained 23.6% on that price valuation, ranking it 24th on the NGX in terms of year-to-date performance. The firm is the 107th most traded stock on the Nigerian Exchange over the past three months as it traded a total volume of 2.5 million shares, in 221 deals, valued at N1.77 million over the period, with an average of 39,654 traded shares per session. A volume high of 383,203 was achieved on June 23rd for the same period.
For the month of July, the company’s share price grew by 18.67%, from N0.75 at the beginning of the month to N0.89 at the end of the month. The firm is currently trading near its 52-week high of N0.90. The company has shares outstanding of 389,151,412 units which put its total market capitalization at N346,344,756.68, using its current market price as of Friday’s close.
Other stocks with significant appreciation include;
- LEARNAFRCA 15.56%
- CWG 13.75%
- SEPLAT 10.04%
On the decliners side, we have MCNICHOLS losing 55.17% leading the charge. This is followed by NAHCO and HONYFLOUR losing 29.41% and 25.72% respectively.
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