NGX stocks reverse losing streak, post YTD gains first time since January
The Nigerian equity market ended its Year-to-Date losing streak to what turned out to be a bullish October. The All-Share Index (ASI) gained 4.52% for the month starting at 40,221.17 basis points and ending at 42,038.6 basis points.
This puts the NGX’s YTD performance at 4.39%. This is the first time since January that the NGX’s YTD performance is in the green, with the ASI gaining as much as 5.32% in January.
Many analysts are wondering if there is going to be a repeat of 2020’s stellar performance, where the market gained over 50% YtD. Following the trend of what happened in 2020, the market began to enter its bullish phase coincidentally in October. In fact, the market also broke its YtD losing streak by gaining over 14% in the month, similar to what happened in October of 2021.
After breaking its losing streak in October 2020, the market went on to gain 16% in November and 20% in December. The positive third-quarter performances and an increase in domestic participation in the month of September 2021, where domestic participation increased by 46.43% to ₦93.80 billion, which is the first uptick in domestic participation since June 2021, there is a strong belief that we may just have a repeat of 2020’s bull run.
The market capitalization also grew in similar fashion from ₦20.9 trillion at the beginning of the month only to end the month trading ₦21.9 trillion, representing a 4.69% gain. These gains would not have been possible without stellar stock price performances from these top gainers, which gave the market an edge. These stocks include:
University Press Plc (UPL) 76.42%
UPL is one of the oldest publishers of materials for education and for general reading. The company is engaged in the business of printing, publishing and selling books in areas of educational and general titles.
The company touts to have an effective coverage of the country and the West Africa sub-region through the strategic location of its Area Offices, Depots, Showrooms and a number of representatives in major cities and towns nationwide and in Accra, Ghana.
Its second-quarter 2021 report recorded a revenue of ₦1.57 billion, which represents a 13.35% gain YoY. After the deduction of cost of sales, which stood at ₦644.5 million, the gross profit of the firm stood at ₦924.9 million, a 14.84% gain YoY. However ultimately, its PAT stood at ₦243.8 million, a 38.16% decline YoY.
For the month of October, the company’s share price grew by 76.42%, from ₦1.23 at the beginning of the month to ₦2.17 at the end of the month.
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The company has shares outstanding of 431,409,504.00 units and a total market capitalization of ₦936,158,623.68, using the current market price, as of Friday’s close, of ₦2.17.
Ecobank Transnational Incorporated (ETI) 64.81%
Ecobank Transnational Incorporated, which is popularly known as Ecobank, is a pan-African banking conglomerate, with banking operations in 36 African countries. It is the leading independent regional banking group in West Africa and Central Africa, serving wholesale and retail customers.
For the month of October, the company’s share price has ranked among the top 3 gainers, appreciating 64.81% from ₦5.4 at the beginning of the month to ₦8.9 at the end of the month.
The company, according to a disclosure made to the exchange, is looking to audit its third-quarter 2021 results and it expects to release its third-quarter results on or before the 7th of December 2021.
The company has shares outstanding of 18,349,551,215 units and a total market capitalization of ₦163,311,005,813.50, using the current market price of ₦8.90.
Champion Breweries Plc (CHAMPION) 43.54%
Champion Breweries is a Nigerian brewing company located in Akwa Ibom state. The company is involved in brewing, bottling and selling of beer and non-alcoholic drinks. Of note, the company is the producer of Champion lager beer and Champ Malta.
While the ownership structure of the company has changed over the years, Champion Breweries Plc is today under the technical supervision of its controlling shareholders, Heineken NV.
For the month of October, the company’s share price grew by 43.54%, from ₦2.09 at the beginning of the month to ₦3.00 at the end of the month.
According to a disclosure made to the exchange, there is a proposed mandatory take-over by Raysun Nigeria Limited to acquire up to 1,196,799,164 ordinary shares from the other shareholders of Champion Breweries Plc. The disclosure explains that the mandatory take-over is being effected in accordance with the directives of the regulator subject to the provisions of Section 131, Part XII of the Investment and Securities Act, No. 29, 2007 and Rule 445 of the Securities and Exchange Commission Rules and Regulations, 2013.
The company has shares outstanding of 7,829,496,464 units and a total market capitalization of ₦23,488,489,392.00, using the current market price of ₦3.
Other stocks with significant appreciation include:
FBNH 24.65%
AIICO 17.23%
CUTIX 17.12%
On the decliners side, we have REGALINS losing 15.91% leading the charge. This is followed by ACADEMY and LINKASSURE losing 15.38% and 11.67% respectively.
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