The Nigerian Stock Exchange closed last week ‘s trading session negative as the All Share Index (ASI) declined 1.1% to settle at 42,638.83 points. Year to date, the index is up 11.5%. Here is a run down of stocks that topped the gainers list, and our thoughts on how they will perform in the coming week.
Berger Paints
Berger Paints led the gainers chart for last week with a 15% gain. The stock opened at ₦9.00 and closed at a year high of ₦10.35. The stock could witness further upside depending on general market sentiments, the earnings season, and if word of a dividend comes out.
Berger paints paid ₦0.50 kobo per share, for the financial year ended December 2016. The stock hadearnings per share of ₦0.39 kobo for the 9 months ended September 2017.
Beta Glass
Beta Glass gained ₦6.65 or 10.16% in last week’s trading session. The stock opened at ₦65.45 and closed at ₦72.10. The stock has appreciated by 40% year to date and investors could decide to cash out. Beta Glass is currently trading at a year high.
Access Bank
Access bank gained 5.44% in last week’s trading session. The stock opened at ₦11.95 and closed at ₦12.60. There could be further upside for the stock in the coming week as the earnings season approaches. Access Bank is also trading at about 5 times its earnings with a price to book ratio of 0.72.
A.G Leventis
A.G Leventis opened last week’s trading session at ₦0.57 and closed at ₦0.60, gaining 5.26%. Year to date, the stock’s price has depreciated by 14.29%, suggesting that investors are dumping the stock due to its poor fundamentals.
For the 9 months ended September 2017, the company made a loss before tax of ₦1.5 billion, pushing its retained earnings into negative territory. Possibilities of dividend payment are thus quite slim.
In the event of the bearish run resuming in the market, the stock could witness further price depreciation.
GSK Plc
GlaxoSmithKline Plc gained 4.95% last week moving from ₦20.20 to ₦21.20. Year to date, the stock has depreciated 1.90%. Though the company made losses during the 9 month period ended September 2017, the company could still decide to pay dividends from its retained earnings. The stock could witness upside in the coming week.
Transcorp Hotels Plc
Transcorp Hotels Plc gained N0.35 last week, opening at ₦7.20 and closing at ₦7.55. Year to date, the stock has gained just 4.72%, leaving room for further upside as the earnings season approaches.
Wapic Insurance Plc
Wapic Insurance gained 4.67% last week opening at N0.64 and closing at ₦0.67. Year to date, the stock is up 34%, outperforming the NSE All-Share Index which is up 11.49%. There could still be room for further appreciation as investors have turned their attention to penny stocks in search of capital gains.
Africa Prudential
Africa Prudential gained 4.17% in last week’s trading session, opening at ₦4.80 and closing at ₦5.00. Year to date, the stock has gained 18.48%, but may still have a bit more room for upside as investors await what is expected to be a bumper 2017 result.
Results for the 9 months ended September 2017 show that profit before tax jumped from ₦925 million in 2016 to ₦1.4 billion in 2017. Earnings per share also increased massively from 41 kobo in 2016 to 65 kobo in 2017. Africa Prudential Plc paid a 30 kobo dividend for the 2016 financial year.
PZ Cussons
PZ Cussons added ₦1 in last week’s trading session gaining 4.17%. The stock opened at ₦24.00 and closed at ₦25.00. Year to date, the stock has gained 21%, but could still experience further upside, being a blue chip. Blue-chip stocks are companies that have a consistent record of profitability.
2017 was a year of recovery for most fast moving consumer goods (FMCGs), and PZ was not left out. Its financial year ending May means that some investors could decide to take positions now.
Zenith Bank
Zenith Bank rounds up the gainers’ list for last week with a 3.56% gain. The stock opened at ₦30.90 and closed at ₦32.00. The stock price may still witness further appreciation as several banking stocks such as Stanbic Ibtc and tier 1 peer Guaranty Trust Bank are trading at over ₦40.00.
Bank results are expected to start filtering in from late February, so investors could decide to take positions in expectation of decent dividends.
