Amid the stock market rout and a sluggish economy, some firms have seen their shares gain since the start of the year.
The above means there is light at the end of the tunnel for the broader economy that is gradually recovering from its first economic downturn in a quarter of a century.
Among the tier-one lenders in the financial services space, only Access Bank- Nigerian largest lender by assets- has returned 4.41 percent year-to-date, outperforming the benchmark index (-8.2%) and banking stocks index (-7.2%).
Analysis of the year-to-date performance among the mid-tier lenders revealed that Sterling Bank delivered the most value to investors having returned 41.05 percent since year kick-started, trailed by Union Bank (+25%) and Wema (+14.29%).
Sterling Bank’s significant share appreciation is largely on the back of its quite impressive earnings figure posted in the full year 2018, and the first quarter of 2019.
The lender reported a double-digit growth of 15 percent in bottom-line in the full year 2018 to N9.2 billion partly due 18.1 percent growth in fees & commission income, and equally sustained momentum having bottom-line by a modest 5 percent.
In the consumer goods sector, just four firms including Nestle and Cadbury saw their shares advancing with Dangote Flour outstripping peers with 148.18 percent surge since the start of the year.
This is due to the fact that investors are taking a position in the stock because of the N130 billion purchase consideration offered by Olam International to take over 5 billion shares outstanding of the miller.
Cadbury’s 10 percent gain hinges on the fact it posted its best earnings scorecards in three years.
Top and bottom-line were at their highest level at N36 billion and N823 million respectively since 2017. The consumer goods giant maintained tempo as it grew revenue and after-tax earnings substantially.
Nestle’s shares gained 2.36 percent since the year started, attributable to favourable investors’ sentiments on the back of its attractive earnings figures.
Among the industrial goods player, Cutix outperformed its peers to emerge the only firm with a share price advance since 2019’s start. The electrical cable maker has so far gained 12.80 percent since the year started.
The NSE benchmark index dipped 17 basis points at the close of Friday’s business, thereby extending its year-to-date losses to 8.22 percent. This translates to N878 billion or $2.87 million losses on the local bourse so far.
ISRAEL ODUBOLA
