Fewer stocks have resisted the bearish forces sweeping the Nigerian equity market, which year to date has lost N2.02 trillion in market capitalisation. Put in another way, the stocks quoted on the Nigerian Stock Exchange (NSE) closed last Friday at -14.61 percent year to date.
The stocks that have so far defied the coronavirus impact are Law Union and Rock, Union Diagnostic and Clinical Services, Livestock Feeds, May and Baker, Cornerstone Insurance, Beta Glass, Julius Berger and AIICO Insurance. Others are Union Bank of Nigeria (UBN), 11 Plc (Mobil), Flour Mills, Champion Breweries and Honeywell Flour.
Some of the factors driving the demand for the stocks are unconnected with merger and acquisition moves, speculations as well as the fact that some of those stocks are presently under-priced.
Law Union & Rock closed last Friday at N1 per share, signifying that its share price has gained 100 percent year to date. Earlier in February this year, the market was jolted when the company announced that Verod Capital Management, a West Africa private equity firm focusing on investing in equity and equity-linked capital in growth companies, offered to acquire all Law Union’s issued capital at N1.23 per share.
Union Diagnostic and Clinical Services presently trades at less than its nominal value but closed last Friday at N0.31 percent despite gaining 40.9 percent year to date. Livestock Feeds has gained 40 percent year to date to close at N0.70 per share last Friday.
May & Baker closed at N2.61 per share, representing 35.2 percent year to date price appreciation. Cornerstone Insurance has gained 31.1 percent to close at N0.59 per share. Beta Glass is presently trading at N70 per share, representing 30.1 percent year to date gain in its share price.
The construction giant, Julius Berger, made the list with 23.1 percent price appreciation to close last Friday at N24.50 per share. AIICO Insurance is worth N0.80 per share, and this is due to the fact that its share price has recorded 11.1 percent price appreciation year to date.
Union Bank and 11 Plc (Mobil) closed last Friday at N6.60 and N160.90 per share, representing 10 and 8.8 percent share price appreciation year to date.
Flour Mills, Champion Breweries and Honeywell Flour Mills traded at N21.20, N0.96 and N1 per share representing 7.6 percent, 1.1 percent and 1 percent year to date price appreciation respectively.
As at last Friday, Nigeria’s confirmed coronavirus cases had risen to 442 with 152 discharged and 13 deaths. Nigeria’s commercial capital, Lagos, and Abuja, the seat of government led with 251 and 67 confirmed cases.
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