The Nigerian equities market rallied by 19.98% in 2022, higher than the 6.07% printed in the previous year.
The activities in the Nigerian equities market increased relative to the previous year. A total of 201.99 billion units of shares were traded valued at N2.34 trillion in 2022 compared to 174.24 billion shares at N1.91 trillion traded in the previous year.
However, the local bourse was unable to live up to the 50.03% record posted in 2020.
In 2022, the Nigerian economy was significantly ravaged by different doldrums, characterized by slow business activities, a high Inflation rate, slow GDP growth, a slump in foreign investment, exchange rate depreciation, and rising energy prices amongst others.
NGX by sector performance: Further analysis of the data from the NGX, shows mixed performance across the sectors tracked.
Specifically, the main board index gained 33.18% in the review year, the oil and gas index also gained 34.05%, while the growth and industrial goods indices gained 41.63% and 19.67% respectively.
On the other hand, the insurance index dipped by 11.99%, the consumer goods index declined by 0.06%, and the CG index dipped by 0.12%.
Meanwhile, the banking index gained a marginal 2.81% in the review period. The NGX 30 and the premium indices gained 6.98% and 13.14% respectively.
Investors gain massively: Despite the seemingly lacklustre year, some company stocks on the Nigerian Exchange printed impressive numbers. Investors who bought these stocks at the beginning of the year would be smiling to the bank to cash out.
Nairametrics compiled the best-performing stocks in 2022, comparing the share price as of 31st December 2021 and 30th December 2022. The analysis considered all 159 publicly quoted companies during the period.
1. Multiverse Mining & Exploration – 1,890%
Multiverse Mining & Exploration Plc is a mining company that specializes in solid minerals, focusing on lead and zinc ores, copper ores, and granite chippings. The company trades under the ticker “MULTIVERSE” and saw its share price surge by over 1,890% in 2022.
Specifically, a unit of share of the company was worth 20 kobos as of the end of 2021 and closed the year at N3.98 as of 30th December 2022. The share growth may be attributed to the stellar financial performance the company enjoyed in the review year.
A cursory analysis of the financial statement for the first nine months of the year showed a 194% growth in topline revenue to N402.87 million from N137.1 million recorded in the corresponding period of 2021.
In the same vein, profit after tax surged by over 1000% from a loss position of N11.11 million to a profit of N120.29 million in the review period. It is also worth noting that the company’s share price rallied significantly despite not declaring dividends to its shareholders during the year.
Data from the National Bureau of Statistics (NBS), however, showed that the quarrying and other minerals subsector of the Nigerian economy grew by 22.15% and 39.61% in the second and third quarters of 2022 respectively.
2. Wema Bank – 441.7%
Wema Bank also enjoyed a profitable year, in its financial and equity performances. Nairametrics ranked Wema Bank as the best-performing commercial bank in the first half of the year based on metrics from its financial statement.
Wema Bank’s share price appreciated by a whopping 441.7% to close the year at N3.9 from 72 kobo recorded at the end of the previous year. This is following a 51% increase in gross earnings in the nine months of 2022 and a 31% increase in post-tax profit.
Investors rallied the bank’s stocks despite a general downturn in most banking stocks during the year.
Meanwhile, Wema Bank declared a final dividend of 24 kobo per ordinary share for the previous year to its shareholders. Hence, increased profitability could suggest a better dividend payout to shareholders.
As of the time of writing this article, the bank’s price-to-earnings ratio is stated at 4.98.
3. Meyer Plc – 393.5%
Meyer Plc is a manufacturing company operating in the industrial goods sector focused on the production and marketing of paints, including architectural paints, wood paints, and auto refinishes amongst others.
The share price of Meyer Plc gained 393.5% in 2022 to close at N2.27 from 46 kobo recorded as of the end of last year.
Meanwhile, a glance at the company’s nine-month financial statements for 2022 shows that despite a 43% year-on-year growth in gross revenue, the firm posted a net loss of N26.8 million in the review period compared to a profit of N9.47 million recorded in the corresponding period of 2021.
4. Thomas Wyatt Nigeria – 177.1%
Thomas Wyatt Nigeria Plc is a Nigeria-based paper conversion and printing company in Nigeria. The Company is engaged in large-scale printing and manufacturing of school and office stationery, which were initially printed in the United Kingdom and imported into the country.
The share price of Thomas Wyatt grew by 177.1% to close at 97 kobo as of 30th December 2022 compared to 35 kobo as of the previous year.
Meanwhile, the company suffered a massive decline in its revenue in the first half ended September of 2022. Revenue dipped by 42% to N24.88 million in H1 2022, while it posted a net loss of N39.59 million in the same period.
5. Academy Press – 158%
Academy Press Plc is an established printing company in Nigeria offering services for the printing of labels, calendars, company annual reports, books, magazines, and marketing material.
Academy Press closed the year with a share price gain of 158% at N1.29 from 50 kobo recorded as of the previous year, making the firm the fifth best-performing company on the Nigerian equities market.
According to the company’s H1 2022 financial statement ended September 2022, revenue increased by 10% to N2.33 billion, while net profit declined by 11% to N175.06 million.
In July 2022, the company however declared a final dividend payment of 10 kobo per ordinary share to its shareholders for the financial year ending March 2022.