BusinessDay 22 Jun 2017

Thursday 22 June 2017
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NVESTO
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BUSINESS DAY
17
Week open (09 – 06–17)
Week close (16 – 06–17)
Percentage change (WoW)
NSE All Share Index
33,276.68
33,810.56
Percentage change (YTD) 25.81 33.58
NSE Premium Index The NSE-Main Board
Market capitalisation
NSE ASeM Index NSE 30 Index NSE Banking Index NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index
Year Open 26,874.62 N9.247 trillion 1,695.51 1,203.79 1,189.69 1,195.20 274.32
1.60
N11.504 trillion
N11.692 trillion
2,231.99
2,264.91
1.47
1,490.16
1,515.26
1.68
1,174.72
1,171.01
-0.32%
1,512.35
1,546.79
25.87 -1.57% 29.42%
394.94
414.65
126.29
140.75
145.77
712.65
806.05
810.15
2.28% 4.99% 3.57% 0.51%
312.68
345.42
330.91
-4.20%
51.16% 15.42% 13.68% 5.83%
Five stocks exceed 100% in YtD gain
…as investors record over N2.6trn value increase
Stories by IHEANYI NWACHUKWU
Investors in five listed
companies –May &
Baker Nigeria Plc, Fidson
Healthcare Plc, Cement
Company of Northern
Nigeria Plc, Stanbic IBTC
Holdings Plc, and Transnational
Corporation of Nigeria Plc –have
recorded impressive growth in
their stocks prices.
Their year-to-date (Ytd) price
change shows growth in excess of
100percent. This remarkable feat
also comes on the heels of over
N2.6trillion Ytd value increase
recorded by investors in listed
Nigerian equities.
May & Baker Nigeria Plc is
the best performing stock on the
Nigerian bourse this year with a
record 487.2percent increase to
N5.52.
In addition to the
aforementioned companies,
other stocks that have impressed
investors as it relates to their price
increase this year are: Access
Bank Plc, Airline Services &
Logistics Plc, Beta Glass Plc, FBN
Holdings Plc, Fidelity Bank Plc,
Flourmills Nigeria Plc, Oando
Plc, International Breweries Plc,
Okomu Oil Palm Plc, Presco Plc,
PZ Cussons Nigeria Plc, Skye
Bank Plc, and United Bank for
Africa Plc. All these stocks have
exceeded 50percent price gain
year-to-date.
A look at the Ytd performance
of some of these stocks as at
Tuesday revealed that investors in
Access Bank Plc shares with price
at N9.79 have gained 66.8percent
this year. Also, Air Service &
Logistics Plc rallied by 80.8percent
Ytd to N4.52; Beta Glass Plc
at N52.17 gained 72.1percent
already; Cement Company of
Northern Nigeria Plc recorded
Ytd increase by 114.8percent to
N10.74; FBN Holdings Plc has
risen by 99.1percent this year to
N6.67; while Fidelity Bank Plc
share price has risen by 56percent
this year to N1.31.
Further check shows that
the share price of Fidson
Healthcare Plc at N3.14 has
risen by 145.3percent this year;
Flourmills Nigeria Plc at N29.5
has increased by 59.5percent in
2017; International Breweries
Plc also rose by 65.7percent to
N30.65.
Okomu Oil Palm Plc has
achieved 74.7percent growth
in its share price this year to
N70.18; Oando Plc at N7.65
has increased this year by
N62.8percent; Presco Plc at N76
has increased by 89.5percent
Ytd; PZ Cussons Nigeria Plc
share price at N22 grew by
51.7percent this year.
Also, Skye Bank Plc which
grew by 60percent this year
stood Tuesday at 80kobo;
Stanbic IBTC Holdings Plc at
N32.9 has increased this year
by 119.3percent; Transcorp Plc
at N1.76 grew by 102.3percent;
while UBA Plc at N8.85 has
achieved 96.7percent growth
this year.
The bull situation at the stock
market is evidence that many
investors have responded to
positives in the macro-economy.
Also, recent and emerging
fundamentals of quoted
companies have continued to
show strong performance, giving
investors the reassurance of good
returns on investments even as
Nigerian economy nears exit of
recession.
Interestingly, the Nigerian
Stock Exchange (NSE) All Share
Index (ASI) which opened at
26,874.62 points rose to 34,375.60
points Tuesday indicating Ytd
return of 27.91percent, while the
value of listed Nigerian stocks
rose from year-open level of
N9.246trillion to N11.887trillion.
NSE Lotus II
1,841.59
2,127.89
2,112.81
-0.71%
14.73%
NSE Ind. Goods Index
2,176.44
2,001.22
1,995.59
-0.28%
25.09%
NSE Pension Index
810.04
1,188.17
1,214.68
2.23%
49.95%
FBNQuest research
sees decent growth
posted by PFAs
Th e assets under
management (AUM) of
the regulated Nigerian
pension industry
increased by 21.1percent year-onyear
(y/y) in April to N6.49trillion
($21.2bn).
“This is a decent annual
increase when we allow for the
arrears in pension (and salary)
payments to employees of state
governments and public agencies
that emerged in the campaigning
for the elections in 2015.
“It would appear that the
FGN’s several initiatives to bolster
state government finances have
made an impact. Certainly the
monthly distributions by the
Federation Account Allocation
Committee have not picked up,”
said FBNQuest research in their
recent note.
“Holdings of FGN paper
amounted to 71.4percent of
AUM in April, compared with
67.5percent one year earlier. We
can see a sharper rise in positions
in Nigerian Treasury Bills (NTBs),
to 15.7percent from 8.6percent.
The pension funds have a
particular interest in the long
bonds for matching purposes.
More generally, they may feel that
they had been missing out in the
NTBs market, where the CBN has
been setting the stop rates at more
than 22percent since August at
primary auction and open market
operations (OMO).”
“The industry’s holdings of FGN
bonds at end-March represented
45.7percent of the stock of the
paper. The data does not capture
the recent surge on the stock
market, to which offshore investors
have returned with new money (in
addition to recycled dividends)
and some domestic institutions
have followed their lead.
“The share of domestic
equities in AUM actually declined
to 7.4percent in April from
8.7percent one year earlier. We
welcome the timely monthly
data releases from PenCom.
We would welcome even more
independent industry analysis
allowing investors to compare
the performance of the pension
funds,” FBNQuest research stated.