The Nigerian equity market is on its second month winning streak. The market in April posted a gain of 5.69% ending its All-Share Index at 49,638.94 basis points, a 13-year high, with a market capitalization of N26.8 trillion. This performance was on the back of global macro-economic worries as a result of the Russian – Ukraine war.
In May, the All-Share Index (ASI) for the month, gained 6.75% starting at 49,638.94 basis points to end the month at 52,990.28 basis points. The market capitalization also gained in a similar fashion from N26.8 trillion at the beginning of the month, to end the month trading N28.6 trillion, also representing a 6.75% gain.
These magnificent gains were made possible as a result of the stellar performance from these top gainers. These stocks include:
MCNICHOLS PLC (MCNICHOLS) 182.86%
McNichols Consolidated is a manufacturing firm that packages and markets a range of fortified sugar products in Nigeria. This includes granulated sugar, cube sugar, icing sugar and baking sugar. The company also produces a range of chocolate powder and custard powder. The rally in its share price came after the company updated its dividend announcement to include the issue of share bonuses to its shareholders.
At the beginning of April, the company announced that it was only proposing a dividend of N0.03 for every share of N0.50. However, After the company’s board meeting on the 27th of April 2022, the board voted to approve a bonus issue to add to its dividend proposal. This means, shareholders who own the stock by the qualification date, slated on the last day of June 2022, will not only be entitled to a N0.03 dividend, but also six additional shares for every five shares owned by that time.
Also weighing in on the bullish sentiment is the company’s stellar first-quarter performance that showed promise for the company’s future. The company was able to grow its revenue by 33.72% from N162 million to N218 million Year-on-Year. Despite the increased cost of sale and selling, marketing and administrative expense in the first quarter of 2022, the company was able to increase its profit before tax by 20.16%. Because the company recorded N3.8 million for other comprehensive income, it put the company’s profit after tax (PAT) at N11 million, up by 74.70%.
For the month of May, the company’s share price grew by 182.86%, from N0.70 at the beginning of the month to N1.98 at the end of the month.
The company has shares outstanding of 326,700,000 units which puts its total market capitalization at N646,866,000.00, using its current market price as of yesterday’s close. MCNICHOLS now ranks #5 on the NGX in terms of year-to-date (YtD) performance as its share price has gained 157%.
CADBURY NIGERIA PLC (CADBURY) 72.68%
Cadbury Nigeria Plc manufactures and markets a range of chocolate malt drink mixes, sweets, powder beverages and chewing gums in Nigeria. The company was established in the 1950s to source cocoa beans from Nigeria for the Cadbury Group; it then branched into re-packing imported bulk products and grew rapidly into a fully-fledged manufacturing operation producing a range of popular Cadbury brands.
Cadbury Bournvita is the company’s flagship product which is a brand of malted and chocolate malt drink mixes that has energy and nutritional properties. The company introduced other Cadbury brands into its range in the 1970s; TomTom, a large black and white sweet for soothing relief; Cadbury Buttermilk, a delicious sweet with a butter and mint flavor; Tang, a popular powdered beverage; and Clorets and Trident, brands of chewing gum.
The increase in the price of Cadbury’s share is on the back of a stellar performance in the first quarter of 2022. The firm recorded a 43% increase in revenue from N8.9 billion to currently stand at N12.8 billion as of the time of this writing. Despite increases in cost of sales, selling expenses, distribution expenses and administrative expenses, the firm still managed to record a profit from operating activities of N1.9 billion, a 496% gain, when compared to the N322.5 million generated in the first quarter of 2021.
Although the firm recorded an increase in income tax of 538.12%, it did not stop the firm from generating a profit after tax (PAT) of N1.54 billion. This is up 538% from the N241.6 million it generated in the first quarter of 2021.
For the month of May, the company’s share price grew by 72.68%, from N10.25 at the beginning of the month to N17.70 at the end of the month. In fact, the stock price is currently trading near its 52-week high of N17.85 as of yesterday’s close.
The company has shares outstanding of 1,878,202,040 units which puts it total market capitalization at N33,244,176,108.00, using its current market price as of yesterday’s close. Cadbury began the year with a share price of 8.80 and has since gained 101% on that price valuation, ranking it seventh on the NGX in terms of year-to-date performance.
ABBEY MORTGAGE BANK PLC (ABBEYBDS) 60.71%
Abbey Mortgage Bank Plc is a leading non-aligned Primary Mortgage Bank in Nigeria focused on providing well-structured mortgage options as well as financial banking and advisory services. The company is the largest and most profitable Primary Mortgage Bank in Nigeria and one of seven licensed by the Central Bank of Nigeria and Federal Mortgage Bank of Nigeria (FMBN).
The company’s housing and mortgage products are available to residents of Nigeria. Its full suite of banking products and services is geared towards retail banking, wholesale banking, mortgage banking, lending and mortgages and electronic banking.
It looks like investors have begun reacting bullishly to the firm’s financial statement which revealed a stellar performance and a U-turn into profitability. The firm was able to grow its gross earnings by a little over 150%. Ultimately, the firm recorded a PAT of N622 million in 2021 from a negative 4.3 billion in 2020.
For the month of May, the company’s share price grew by 60.71%, from N1.12 at the beginning of the month to N1.80 at the end of the month. The firm is currently trading at its 52-week high. The company has shares outstanding of 10,153,846,154 units which put its total market capitalization at N18,276,923,077.20, using its current market price as of yesterday’s close.
Abbey began the year with a share price of 1.04 NGN and has since gained 73.1% on that price valuation, ranking it 16th on the NGX in terms of year-to-date performance.
Other stocks with significant appreciation include;
CHAMPION 56.75%
INTBREW 54.90%
OKOMUOIL 46.26%
On the decliners side, we have GSPECPLC losing 26.72% leading the charge. This is followed by IKEJAHOTEL and JBERGER losing 17.86% and 13.65% respectively.
