NSE

By ADEBAYO OBAJEMU

It’s no longer a matter for a doubting Thomas that since the beginning of this year the world’s best-performing stock market for 2020 has not been particularly impressive this 2021. However, in spite of the economic situation blighted by the pandemic and other challenges, some stocks have performed better.

Most recent data from the Nigerian stock exchange revealed all-share index fell further at the close of its most recent trading session, down by -0.40% to 39,364.67 index points. The Year-to-date return and market capitalization settled at -2.26% and N20.5 trillion, respectively.

Still, some medium capitalized Nigerian stocks had printed returns in the last two months that would make Bitcoin and other top Crypto assets envious.
The Nigerian equity market last week, especially on Thursday closed on a negative note as the All Share Index declined by 0.08% to settle at 38,469.87 points from the previous close of 38,501.31 points.

The Market Capitalisation declined by 0.13% to close at N20.043 trillion from the previous close of N20.070 trillion, thereby shedding N27 billion.

An aggregate of 238.24 million units of shares were traded in 3,927 deals, valued at N2.58 billion. The Market breadth closed negative as 12 equities appreciated in their share prices against 16 equities that declined in their share prices.

Percentage Gainers

NEM led other gainers with 10% growth, closing at N2.20 from the previous close of N2.

Courtville Business Solution and NAHCO among other gainers also grew their share prices by 9.52% and 5.71% respectively.

Percentage Losers

Prestige Assurance led other price decliners as it shed 10% of its share price to close at N0.45 from the previous close of N0.50.

Pharmadeko, University Press and Coronation Insurance among other price decliners also shed their share prices by 9.70%, 7.88% and 5.08% respectively.

Volume Drivers

Transcorp traded about 34.44 million units of its shares in 149 deals, valued at N32.15 million. Courtville Business Solution traded about 26.37 million units of its shares in 48 deals valued at N5.89 million. Zenith Bank traded about 23.66 million units of its shares in 353 deals, valued at N590.35 million.
However, in spite of the general decline, some stocks have performed better since the beginning of the year.

These include – Champion Breweries:

The medium -capitalized brewery stock is the best performing Nigerian stock asset posting significant profit of about 98% in the last two and a half months on the back of buying interests by investors that continue to prop the shares of the brewery company upon the expectation of a mandatory takeover by Heineken.

Livestock Feeds Plc:

The shares of the Animal feed company have impressively appreciated by 60% on the floor of the Nigerian Stock Exchange in the last two months 66, for this reason investors continue to raise their stake on the company higher, owing to the impressive financial results of the company in 2020.

NCR Nigeria Plc (NCR): Though largely not reckoned with before this stock has however posted impressive upsides this year, on the account, it has currently gained 58% in two and a half months owing to such a remarkable feat to the fact it produced a significant increase in its 2020 Financial year pre-tax profit despite having its total revenues plunging.

BOCGAS Nigeria:

Though medium -capitalized, this stock has continued to beckon the glare of Nigerian investors amid its most recent filing, showing its profit after tax in Q3 grew by 48% to N194 million, amid the prevailing pandemic that wreaked havoc on Africa’s biggest economy. The stock has printed YTD returns of about 42%.

Academy Press Plc:

Often referred to as one of the oldest and largest publishing houses in Nigeria, has posted gains of about 37% amid reports that reveal Nigerians relatively are not reading books as much as they are supposed to, owing to the rise of Facebook, Netflix, Multichoice and the likes.
The N248 million valued Nigerian company is currently trading near its 52 weeks high of 0.46 kobo.

Vitafoam Nigeria Plc: This consumer goods company declared an increase of 36.59% and 47.34% in Q1 and Q2 respectively which explains the buy interests in the company’s shares.
espite the 49% growth in taxes, earnings per share appreciated by 66.92% from N1.30 to N2.17. The company declared a dividend of N0.70 per share which was paid on the 5th of March, 2021.

On June 1, 2021, Vitafoam led other companies to record N94 billion gain for the stock market. Year-to-date, the stock appreciated 97.44%. VitafoamPlc currently trades at N15.40.

Regency Assurance Plc:

Regency Assurance Plc engages in the provision of general insurance cover to corporate and individual clients.In Q1 2021, the company posted an impressive increase in Net Profit of 95.79%.

Because of this, earnings per share shot up by 95.73% from N3.28 to N6.42. The company share price grew by 109.09% from N0.22 to N0.46 year-to-date.
Royal Exchange Plc: Royal Exchange Plc posted a year-to-date increase of 134.62% in its share price, from N0.26 at the beginning of the year to N0.61. The financial services company in Q4 2020 realized a 7% increase in income and 112% growth in Profit after Tax.

It is the only financial services company that ranked amongst the top 10 best-performing stocks in the half-year 2021. The company is engaged in providing life, healthcare and general insurance, financing, asset management, trusteeship and microfinance banking services.

Morison Industries Plc

The share price of Morison Industries Plc for the period gained 185.71% from N0.49 to N1.40.

In Q1 2021, the medical products manufacturing company recorded a loss after tax of 34.17% from N13.16 million to N19.99 million in loss and a 25% reduction in revenue. Despite this result, there is still a good buy interest in the company’s stock possibly because of the potential of pharmaceuticals in the present pandemic era.

Other stocks that ranked amongst the best-performing stocks for the first half-year of the year 2021 include:

Consolidated Hallmark Insurance Plc

Seplat Energy Plc

Linkage Assurance Plc

Mutual Benefits Assurance Plc

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