There are still some stocks that have put smiles on some investors’ faces this year despite that the recent market sell-off which has resulted to value losses.
Though the general returns from Nigerian equities market remained negative at 0.66percent as at Monday, investors who held these identified stocks since this year have reaped from capital appreciation in excess of 70 percent.
Chief among the stocks tracked by BusinessDay is Cement Company of Northern Nigeria (CCNN) with price at N25.95 as at Monday June 25, 2018, representing 173.2 percent price gain this year.
Also, investors who took positions in Ikeja Hotel Plc have reasons to smile with price at N3.13 as at same day, representing 75.8percent in year-to-date (ytd) returns. Investors in NEM Insurance Plc are not left out in the capital appreciation Ytd as its price at N3.04 represents 83.1percent gain.
Analysts advise investors to always take a long-term view of the stock market, especially at a period when the mucky political climate is causing stock prices to trend downwards, though creating an opportunity for long-term investors to take position at cheaper prices.
Despite weakening investor sentiment at Custom Street, the shares of Caverton Offshore Support Group Plc which were priced at N2.28 per share as at Monday have increased by 76.7percent this year, while Learn Africa Plc share price at N1.51 has as well risen by 71.6percent this year.
“We see a market-wide bargain hunting as observed earlier in the month. Also, the outcome of OPEC’s meeting which ended with a deal to reduce compliance from 152percent to the 100percent initially agreed. Our view is that this should have a marginal impact on prices with an overall positive implication for the Nigerian market,” Kayode Tinuoye led team of research analysts at United Capital Plc said in their investment view for the week.
Nigeria’s financial markets are expected to be steered by the fallout of electoral activities and rising global interest rates despite improving macroeconomic environment and an impression of policy stability. Already, the pre-election year is having pronounced effect on Nigerian equities.
Olalekan Olabode, Head of Vetiva Research projects a market return ranging between minus 5percent and plus 5percent for 2018, but remains bullish on Nigerian equities in the long run.
“Comparable multiples with peers suggest the Nigerian equity market remains undervalued,” he said adding that “We maintain a strongly positive post-election outlook on Nigerian equities.”
Investors who took positions in Beta Glass Plc also have reasons to smile because its price at N86.30 per share as at Monday, represents increase of 68.2percent this year; C&I Leasing Plc at N2.03, has risen by 57.4percent in 2018; Cutix Plc at N3.14 has also advanced by 56.2percent this year; while Eterna Plc at N6.75 has gained 66.3percent this year.
Lagos-based Afrinvest in their stock recommendation for this week expect a rebound in the market, saying it will be sustained in the coming week “as investors continue to take advantage of existing attractive entry prices in fundamentally sound stocks.” Other market analysts expect that bargain hunters will continue to hunt for stocks to buy at lower prices.
Other stocks that have put smiles on investors’ faces include FCMB Group Plc with price at N2.11 as at Monday June 25, representing 42.6percent gain in 2018; Fidson Healthcare Plc at N6 has also risen by 62.2percent this year; while FBN Holdings Plc at N10.7 as at Monday implies 21.6percent gain in 2018.
Linkage Assurance Plc with share price at 83kobo has advanced by 25.8percent this year. Mansard Insurance at N2.80 has gained 45.1percent in 2018; while the share price of MRS Plc at N34.25 represents 24.7percent Ytd gain.
Portfolio and fund managers are currently repositioning their portfolios ahead of the expected second-quarter (Q2) 2018 results from listed companies.
