The Nigerian equity market rebounded from March’s marginal decline of 0.91 per cent as strong earnings report from participating companies has further continued the bullish trend the market has been experiencing since the start of 2022, despite the global macro-economic worries as a result of the Russian–Ukraine war.
The All-Share Index (ASI) for the month of April, gained by 5.69 per cent starting at 46,965.48 basis points to end the month at 49,638.94 basis points, a 13-year high. The market capitalisation also gained in a similar fashion from N25.3 trillion at the beginning of the month, to end the month trading at N26.8 trillion, also representing a 5.72 per cent gain, trading at an All-Time High (ATH). These magnificent gains were made possible as a result of the stellar performance of these top gainers. These stocks include:
MEYER PLC (MEYER) 354.55%
Meyer Plc (previously DN Meyer) is a manufacturer and marketer of paints. Meyer Plc is an offshoot of the former Hagemeyer Nigeria Limited, the manufacturer of Sigma Paints and Cosmetics. The company is known for producing and manufacturing different types of paints for a wide variety of use which includes architectural paints, wood paints, auto refinishes, industrial and marine, road lining paints, roof coatings, tube coatings, hp coatings and adhesives.
The rally in its share price came after the company released its audited financial report for the year 2021. The report revealed a significant increase in its revenue which it was able to grow by 35.10 per cent from N827.6 million to N1.12 billion Year-on-Year. Notably, the company’s profit after tax (PAT) declined by approximately 97 per cent from N1.12 billion in 2020 to N33.7 million in 2021.
The reason for the significant decline is because the company did not dispose of any buildings in 2021. In 2020, the company recorded a profit of approximately N1.8 billion from the disposal of one of its buildings. This outlier proved to have a significant impact on the company’s top-line items.
Taking away the disposal, the company would have been able to post a loss (loss before tax) of N143.45 million in 2020.
For the month of April, the company’s share price grew by 354.55 per cent, from N0.66 at the beginning of the month to N3.00 at the end of the month. In fact, the stock price is currently trading at its 52-week high.
The company has shares outstanding of 531,237,723 units which put its total market capitalisation at N1,593,713,169.00, using its current market price as of Friday’s close. MEYER now ranks #1 on the NGX in terms of year-to-date (YtD) performance as its share price has gained 552.17 per cent.
NIGERIAN AVIATION HANDLING COMPANY PLC (NAHCO) 52.56%
NAHCO is one of the major players in the ground handling service sector of the nation’s air transport industry, with presence in all the major Nigerian airports.
Since the company was founded in December 1979, it has since grown into a multi-billion Naira company with diversified investments in energy, logistic and development of a Free Trade Zone Company.
The uptick in its share price began when its audited financial statement was released on the last day of March 2022. The report revealed a stellar performance from the company as it was able to grow its revenue by 43.60 per cent from N7.2 billion in 2020 to N10.2 billion. The growth in its revenue was majorly attributable to the growth seen in passenger/aircraft handling.
Although the firm recorded a drop in other income by 53.88 per cent, the company was still able to record a 120.17 per cent growth in operating income from N478 million in 2020 to N1.05 billion in 2021. Ultimately, the firm recorded a PAT increase of 155.39 per cent, from N302 million to N771.6 million.
For the month of April, the company’s share price grew by 52.56 per cent, from N3.90 at the beginning of the month to N5.95 at the end of the month. In fact, the stock price is currently trading near its 52-week high of N6.
The company has shares outstanding of 1,624,218,750 units which put its total market capitalization at N9,664,101,562.50, using its current market price as of Friday’s close.
Nigerian Breweries Plc is the largest brewing company in Nigeria that serves the Nigerian market and West Africa as a whole. The company recorded a landmark when the first bottle of STAR lager beer rolled out of its Lagos Brewery bottling lines in June 1949. Since the introduction of Star, the company has expanded its portfolio by introducing a wide range of Non-Alcoholic, Stout and Spirit Drinks. The firm currently produces Over 20 brands of drinks which are enjoyed locally and globally.
A significant jump in the price came after its unaudited first quarter 2022 financial statement was released. The report revealed a stellar performance from the company as it was able to grow its revenue by 30.37 per cent from N105.7 billion in 2020 to N137.8 billion, as the demand for brewery products increased compared to the previous quarter.
Although the company significantly increased its marketing and distribution expenses by 62.28 per cent, it was still able to record a 63.72 per cent growth in operating income from N14.50 billion in 2020 to N23.7 billion in 2021. Ultimately, the firm recorded a PAT increase of 77.73 per cent, from N7.66 billion to N13.6 billion.
For the month of April, the company’s share price grew by 41.16 per cent, from N40.45 at the beginning of the month to N57.1 at the end of the month. The firm is trading near its 52-week high of N60.
The company has shares outstanding of 8,075,831,900.00 units which put its total market capitalisation at N461,130,001,490.00, using its current market price as of yesterday’s close.
Other stocks with significant appreciation include.
OANDO 30.71%
GUINNESS 30.62%
UPDC 30.49%
On the decliners side, we have NPFMCRFBK losing 20.48 per cent, leading the charge. This is followed by CWG and SCOA losing 18.52 per cent and 18.49 per cent respectively.
The SWOOTs lose 0.35per cent in market capitalisation to N13.42 trillion
The combined market capitalisation of stocks worth over one trillion (SWOOTs) appreciated by 2.41 per cent to close at N19.09 trillion from N18.65 trillion the previous week, reflecting a gain of N449.00 billion. Stocks included in this classification are AIRTELAFRICA, BUA CEMENT, DANGOTE CEMENT, NESTLE, MTNN Plc, and recently, BUA FOODS.
Nestle Nigeria Plc’s share price appreciated by 3.23 per cent to close the week at N1,440.00 per share, amidst sell-offs and buy-interests during the trading week. The Fast-Moving Consumer Goods company currently has a market capitalisation of N1.14 trillion.
Nestle Nigeria Plc is one of the two companies under the NGX Consumer goods Index to be worth over a trillion.
The Q1 2022 financial result revealed a profit of N17.98 billion, representing a 45 per cent increase from the prior-year period as revenue grew by 26 per cent. Earnings per share for the period was at N22.68.
BUA Cement Plc’s share price grew by 0.96 per cent to close at N68.65 from N68.00, with the market capitalisation standing at N2.32 trillion at the end of the trading week.
The company’s Q1 2022 financial report revealed a revenue of N96.99 billion, reflecting a growth of 58 per cent from N61.19 billion in 2021. Similarly, net income increased by N11 billion, reflecting a 48 per cent increase from N22.37 billion recorded in the corresponding period of 2021, to N33.144 billion in the current period.
Airtel Africa Plc’s share price appreciated by 5.00 per cent to stand at N1,386 per share at the end of the trading week, with a market capitalisation of N5.21 trillion.
Airtel Africa Plc ended the week as the most capitalised company on the exchange once again, vying for the position with Dangote Cement Plc.
Airtel Africa Plc, Telecom giant, has released its 2021 9-month Unaudited Financial Statement revealing a 22.5 per cent growth in revenue from $2.85 billion in 2020 to $3.49 billion in the current period.
Net profit for the nine-month period appreciated significantly by 97.3 per cent from $261 million in 2020 to $514 million.
MTN Plc’s share price, at the end of the trading week, appreciated by 0.70 per cent to close at N214.50 per share, taking its market capitalisation to N4.37 trillion at the end of the five trading sessions of the week.
The communications company, a competitor with Airtel Nig Plc, has a total market capitalisation of N4.37 trillion, N843 billion lower than Airtel Africa’s current market value.
MTN Plc is the third-highest in market value on the Nigerian Exchange Limited (NGX). The company released its Q1 2022 financial result, reflecting a 22.23 per cent growth in revenue for the period, while profit after tax grew significantly by 31.28 per cent from N73.75 billion in Q1 2021 to N96.82 billion in the current period.
Dangote Cement Plc’s share price grew by 2.31 per cent to close at N292.40 at the end of the trading week as the company’s market capitalisation stood at N4.98 trillion. The company, which is a competitor of Bua Cement Plc and Wapco Plc, has a total Market capitalisation of N4.98 trillion.
Dangote Cement Plc is the second most-valued company quoted on the exchange and makes up roughly 26 per cent of the total market capitalisation of all stocks worth over one trillion.
The Q1 2022 financial result revealed a profit of N105.85 billion during the period, representing an 18 per cent increase Y-o-Y. Meanwhile, Revenue for the period stood at N413.18 billion, a 24.20 per cent increase from the corresponding period of 2021.
Other companies under the SWOOT classification remained unchanged in share prices and their performances are summarised below:
BUA Foods Plc’s share price remained unchanged to close at N59.50, with the market capitalisation standing at N1.07 trillion in market value at the end of the trading week.
BUA Foods was a newly listed company on the exchange in January 2022; however, the Q1 2022 financial result revealed a 19 per cent growth in Profit after Tax from N22.84 billion recorded in the corresponding period of 2021 to N22.84 billion in the period reported.
The FMCG company, reported a revenue of N90.07 billion, reflecting a growth of 28.30 per cent from N70.20 billion in the corresponding period of 2021.