Three Premium Board listed stocks — MTN Nigeria, Lafarge Africa and Zenith Bank Plc — have outperformed the market this year.
MTN Nigeria has rose by 135.50 percent, Lafarge Africa moved by +84.85percent while Zenith Bank Plc moved by +49.45percent according to October 14 trading data.
These elite group of issuers meet the Nigerian Exchange (NGX) most stringent corporate governance and listing standards. These companies enjoy access to a global pool of investors who are focused on companies managed in conformity with the highest standards in their target markets.
Currently, there are eight Premium Board listed companies on the NGX, including Access Holdings Plc with market capitalisation of ₦1.380trillion; Dangote Cement Plc with ₦9.881trillion; First Holdo Plc with ₦1.308trillion and United Bank for Africa Plc with ₦1.735trillion.
The others are Lafarge Africa Plc with ₦2.082trillion market cap; Zenith Bank Plc with ₦2.792trillion; MTN Nigeria Plc with ₦9.888trillion, and Seplat Energy Plc with ₦3.549trillion.
While the overall market is a complex interplay of supply and demand, and many factors contribute to price fluctuations, the movements of these dominant companies often have an outsized effect due to their large market capitalisation.
Despite closing flat on October 14, the market’s benchmark performance indicator (NGX ASI) at 147,710.96 points has risen this year by 43.51 percent while equities market capitalisation remains high at N93.8 trillion.
Access Holdings Plc (+8.60% YtD): This year, Access Holdings share price has risen by 8.60percent. The company closed at N25.9 per share on October 14, below its 52-week high of N28.95 but still above a corresponding week low of N19.55. Access Holdings has 53.317billion shares outstanding – that is the total number of its shares that are currently held by all its shareholders, including those held by institutional investors, insiders, and the public.
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Dangote Cement Plc (+22.31%): The share price of Dangote Cement, which is another Premium Board listed company has risen this year by 22.31 percent. Dangote Cement share price reached a 52-week high of N585.6 on October 14, as against 52-week low of N349.2. Dangote Cement has 16.873billion shares outstanding.
First Holdo Plc (+11.41%): The N31.25 per share First Holdco closed on October 14 implies that the stock nears its 52-week high of N37.5, after reaching a corresponding week low of N23.55. First Holdco, which has 41.877billion shares outstanding has risen this year by 11.41 percent.
United Bank for Africa Plc (+24.41%): United Bank for Africa (UBA) share price has risen this year by 24.41%. UBA has 41.039billion shares outstanding. The N42.3 per share it closed on October 14 is still below its 52-week high of N50.55. The stock had traded at a corresponding week low of N24.05.
Lafarge Africa Plc (+84.85%): Investors in the shares of Lafarge Africa have seen their stocks outperform the market this year, rising by 84.85 percent. Lafarge has shares outstanding of 16.107billion units each valued at N129.3 as at October 14. Despite its impressive return year-to-date (YtD), Lafarge Africa is still trading below its 52-week high of N154.3. Though the stock had reached a corresponding week low of N36.
Zenith Bank Plc (+49.45%): Zenith Bank Plc share price has also outperformed the market this year with return of 49.45 percent year-to-date (YtD). Zenith Bank closed October 14 trading at N68 per share, below its 52-week high of N78.5. Though, each of Zenith Bank’s 41.069billion outstanding shares had reached 52-week low of N37.4.
MTN Nigeria Plc (+135.50%): The share price of MTN Nigeria has risen this year by 135.50 percent according to October 14 trading data. The stock at N 471 per share nears its 52-week high of N495 compared to a 52-week low of N169. MTNN has 20.995 shares outstanding.
Seplat Energy Plc (+3.81%): Seplat Energy Plc share price has risen this year by 3.81 percent, according to October 14 trading data. The stock was priced at N5,917.2 at the close of trading as at the review date, reaching its 52-week high as against 52-week low of N4,860.
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Here’s why equities will sustain bullish momentum
“The Nigerian equity market could sustain its bullish momentum on the back of strong buy interest and positive earnings expectations. Improved stability and reforms could further attract foreign inflows, though there could be profit-taking due to short-term gains”, Lagos-based United Capital research analysts said on Monday.
Vetiva research analysts in their post-trading commentary on October 13 anticipate that buying activity will persist on the NGX, “particularly as yields continue to decline in the fixed-income market”.
“Furthermore, we expect market dynamics to be significantly shaped by institutional fund managers adjusting their asset allocations,” they added.
“Looking ahead, we anticipate further upside this week, supported by sustained market-wide buying interest and the focus on fundamentally strong names within our portfolio. Moreover, expected dividend inflows from Stanbic IBTC Holdings and Guaranty Trust Holding Company should bolster our portfolio yield and reinforce overall performance,” Coronation Research analysts said in their recent model equity portfolio.
“We expect equities to record modest gains next week, driven by sustained interest in undervalued stocks and optimism over strong Q3 earnings,” Futureview research analysts said recent recommendation.
