The Nigerian stock market has shown remarkable resilience in the face of a challenging macroeconomic environment.
The NGX All-Share Index appreciated by 4.3% to close the month of October at 69,236.19 index points, recording a YTD return of 35.09% growth.
Despite concerns such as rising inflation, interest rate hikes, elevated exchange rates, and apprehension surrounding the fallout of the 2023 general elections, investor confidence remained strong, leading to increased buying activity.
Some stocks have performed exceptionally well, posting triple-digit returns in the first ten months of the year. These are mainly companies that have strong fundamentals, diversified revenue streams, and competitive advantages in their respective sectors.
These stocks have delivered impressive returns despite volatility in the economy, marked by elections elevated exchange rates, and rising inflation, which affected business performance.
The top performers encompass a range of sectors, indicating diverse opportunities for investors.
These are the top 5 performers in 2023 YTD October 2023.
Chams Plc +909%
Chams Plc has delivered a noteworthy YTD return of 909%. The company closed the month of October at N2.22 per share from 0.22 kobo it opened the year.
- Chams Holding Company Plc reported earnings results for the half year ended June 30, 2023. For the half year, the company reported sales was N5,424.69 million compared to N2,107.32 million a year ago. Net income was N276.28 million compared to N17.89 million a year ago.
- The company’s last dividend payout of 3kobo per share was declared in 2019, but the company, buoyed by robust financial performance in H1 2023, with a reported revenue of N5.42 billion as of June, the company said it is poised to announce new dividends.
CWG Plc +729%
CWG Plc has witnessed significant growth with a YTD return of 729%. The company began the year with a share price of N1.01 and closed the month of October at N8.37 per share.
- For the nine months, sales were N18,263.58 million compared to N10,162.36 million a year ago. Net income was N534.04 million compared to N432.06 million a year ago.
MRS Plc+680
MRS Plc, a major player in the petroleum sector has posted a remarkable YTD return of 680%. Amidst challenging market conditions, MRS Plc closed the month of October at N109.95 per share from N14.10 per share it opened the trading year on January 2023.
- MRS Oil Nigeria Plc recorded a profit before tax of N1.84 billion in Q3 2023, representing an 83.3% year-over-year increase from the corresponding quarter in 2022.
- This moderated nine months pre-tax profits to N4.96 billion, compared to N1.49 billion in the same period last year.
- The company’s robust financial results in 2023 can be attributed to a significant increase in revenue, rising from N69.15 billion in the first nine months of 2022 to N100.88 billion in the same period of 2023.
Transcorp Hotels Plc +610%
Transcorp Hotel Plc, a major player in the hospitality sector, has demonstrated its resilience by delivering an impressive YTD return of 610%.
- The company closed the month of October at N44.4 per share from N6.25 per share it opened the trading year on January 2023.
- Transcorp Hotels Plc posted a year-on-year growth of 119% in its Q3 2023 profit before tax.
- The group recorded a pre-tax profit of N2.02 billion in Q3 2023, up from N922.65 million recorded in Q3 2022.
- According to the group’s financial statements for the period ending September 30, 2023, it was revealed that the group made N10.87 billion in revenue in Q3 2023, marking a significant 41.7% increase compared to N7.668 billion recorded the in same period last year.
- Additionally, the group’s profit after tax for Q3 2023 stood at N1.61 billion, showing a 177.3% surge from the N580.6 million recorded during the same quarter in 2022.
FTN Cocoa Plc +493%
FTN Cocoa Processors Plc in 10 months gained 493% in price appreciation. The price moved from N0.29 recorded on December 30, 2022, to N1.72 as at 31st of October 2023.
- The positive sentiment was buoyed by the convertible loan of $ 6.35 million the company obtained from OH Ecosystems LLC.
- According to Capital Market experts, the facility obtained by the company has not started making any impact on the operations of the company.
- Hence, the positive vibration in the price of the stock is futuristic and since the price has enjoyed so much appreciation, it may likely see a reverse action.
What you should know
Equity trading on the Nigerian Exchange Limited (NGX) closed trading on Wednesday, November 1st, 2023, in the green territory as the NGX All-Share Index appreciated by 1.94% to cross 70,000 index points.
The development was unprecedented in the history of the Exchange being the first time the Exchange will achieve the feat.
The market positive sentiment among investors is being attributed to several factors, including favourable policies introduced by President Bola Tinubu’s administration such as the removal of fuel subsidies, streamlining of exchange rates, the floating of the naira and investors strategically positioned themselves and taking advantage of the recent record earnings posted by quoted firms.
