Hello again.
Picking up where we left off in our previous article, we take a dive into the performance of some stocks that caught our attention in the first quarter. We assure you that the technicalities shall be dropped at the door.
The Nigerian Exchange Market
Despite the uncertainties that clouded the investment space due to the electioneering activities in the first quarter of 2023, investors (especially domestic investors) were willing to take risks. This reflected in the increase of the overall value of equity securities in the local bourse. Specifically, the All-Share Index rose by 5%, driven by buying activities on eighty-three (83) stocks. The top performing sector of the quarter was the Consumer Goods Industry boasting of a 19.32% gain, distantly followed by the oil and gas sector recording a 10.45% increase.
So, what stocks stood out in the Nigerian market for us? Let’s dive right in.
- MTN Nigeria (MTNN).
A household name and a leading player in the telecommunications sector, this stock has caught our attention. Starting the quarter at N215 per share and closing the quarter at N240, MTNN gained 11.6% in Q1:2023. Following its impressive 2022 financial year result that made it the first company on the exchange to hit the NGN 2trn revenue mark, MTNN declared a final dividend of NGN10. Thus, the stock returned impressive capital gains and dividend yield during the quarter. (Share Price and Charts – MTN Nigeria, 2020b)
- Geregu Power Plc (GEREGU).
Sailing on uncharted waters, Geregu Power is not only one of Nigeria’s leading GENCOs using clean energy (gas), but it also got its investors smiling and looking forward to a bright future. The stock experienced a notable capital appreciation of 116.78% in Q1, its share price grew from N149/share to N323/share. As such, the stock ranked as the fourth top gainer during the quarter.
- Fidelity Bank Plc (FIDELITYBK)
FIDELITYBK (+22.99%) was the topmost gainer amongst the fourteen banking stocks listed on the local bourse. The stock appreciated from NGN4.35 at the end of 2022 to NGN5.35 on the 31st of March. During the quarter, the company released its unaudited 2022 financial results where it reported a 33.94% increase in its gross earnings. Similarly, the bank’s profit after tax grew by 32.57% to NGN47.17bn. The bank is yet to report its audited result and it is expected that upon release, FIDELITYBK could declare an attractive final dividend.
- Stanbic IBTC Holdings Plc (STANBIC)
STANBIC, a financial services provider with vast service offerings, was the second top gainer amongst the listed banking stocks on the Nigerian equities market. Expressly, the stock gained 12.41%, moving its share price to NGN37.60 at the end of the quarter from NGN33.45. The group’s impressive 2022 financial result ensured that the company declare a final dividend of NGN2.00.
There you have it, our review of the top stocks on the Nigerian equities market during the first quarter of 2023.
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References
Home Page – MarketWatch. (n.d.). MarketWatch. https://www.marketwatch.com/
Indicies. (n.d.). Nigerian Exchange. Retrieved April 6, 2023, from https://ngxgroup.com/exchange/data/indices/
Investor Relations – Geregu. (n.d.). https://www.geregupowerplc.com/investor-relations/
Share price and charts – MTN Nigeria. (2020, July 21). MTN Nigeria. https://www.mtn.ng/about-us/investor/shareholders/share-price-and-charts/?gad=1&gclid=Cj0KCQjwxMmhBhDJARIsANFGOSvlO3f0w8AtvXIwFudP4bpoPfGnZYFDCchoPFhIy_RaO024tVmzPUcaAsi3EALw_wcB
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