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14 stocks delight investors amidst rampaging bears

By on November 10, 2015

It is not all gloom at the Nigerian stock market as THISDAY checks have revealed that some stocks still boast of positive year-date-return despite the bearish trend in the market. Investors in about 14 stocks have booked  positive returns of 12 per cent and above as at last Friday.

Economic headwinds, poor corporate earnings among other factors have held the stock market down since the beginning of the year. From every indication the market is heading for a second straight negative close this year, after declining by 16 per cent last year.

As at the close of business last Friday, the main market gauge, the Nigerian Stock Exchange All-Share Index (ASI) has recorded year-to-date decline of 15.8 per cent. All other market indices are in the red with the NSE Consumer Goods Index leading with a decline of 17.9 per cent. The NSE 30 Index is down by 15.4 per cent, while the NSE Mainboard has shed 15.1 per cent.  The NSE Lotus 11 is down by 14.3 per cent; NSE Premium Board (14 per cent); NSE Pension Index(13.2 per cent); NSE Banking Index(12.2 per cent); NSE Oil/Gas Index(8.9 per cent); NSE Insurance Index(6.5 per cent);NSE Industrial Goods Index(2.4 per cent); and NSE Asem Index (0.61 per cent).

However, amidst this negative trend, about 14 stocks have put smiles on the faces of investors, recording positive growths. Beta Glass Plc is leading the pack with a growth of 74.6 per cent, followed by University Press Plc with 35.7 per cent.  Vitafoam Nigeria Plc has appreciated by 33.7 per cent just as  Neimeth International Pharmaceuticals Plc went up by 32 per cent.

Forte Oil Plc,   Presco Plc, NFP Micorfinance Bank Plc chalked up 27.2 per cent, 24 per cent and 22.5 per cent respectively.  Others include: Lafarge Africa Plc (16.7 per cent); Seven-Up Bottling Company Plc (15.5 per cent); Nascon Industries Plc(15.4 per cent); okomu Oil Palm Plc (13.6 per cent); Custodian and Allied Group Plc (13.2 per cent); Airline Services and Logistics Plc (12.3 per cent) and Cutix Plc (11.6 per cent).

Some market analysts said the positive returns by these companies is an encouraging development that is capable of restoring investor confidence in the market.

Already, analysts at  Investment One Limited advised investors to gradually increase their naira votes on highly capitalised stocks as the market may stabilise in the months ahead.

“Our expectation is that the market will remain range-bound till year end but advise gradual building of positions in quality names for investors with a medium to longer term horizon,” the analysts said.

Similarly, analysts at Afrinvest West Africa Plc said: “As the Q3:2015 earnings season winds off with average performance across sector indicating the adverse effects of macroeconomic strain on corporate profitability in the economy, thus  hurting market performance in the past trading sessions. We expect some level of correction in coming sessions.”

Also, analysts at Cordros Capital Limited, said they  expected  the positive sentiment in  last Friday’s  session to be sustained in this week “as investors seek to mop up attractive counters at bargain prices – evidenced by large volumes and crosses dealt in the financial services sector over the past week.”

 

[ThisDay]