Market Intelligence

Large caps outperform small cap stocks on NSE

by INNOCENT UNAH

December 12, 2016 | 12:20 am
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The top ten most capitalized stocks on the Nigerian Stock Exchange delivered average return of 8.6 per cent year-to-date, outperforming the Nigerian Stock Exchange Main-Board Index (NSEMB), which posted a year-to-date return of -9.8 per cent.

Comprising 73.87 per cent of the market value of the exchange, with N6.6 trillion in market capitalization, the ten most capitalized stocks similarly outperformed the ten least capitalized stocks whose returned data are available.

Analysis of returns data obtained by Business day shows that the ten least capitalized stocks with market capitalization of N2.9 billion and equivalent to less than 1 per cent of the value of the exchange, posted average return of -3.51 per cent, less than the return of the most capitalized stocks, but higher than the NSEMB year-to-date (YTD) returns.

NSE TOP TEN MOST CAPITALISED STOCKS AS AT DECEMBER 8, 2016 STOCK
YTD RETURNS (%)
WEIGHT (%)
MARKET CAP
DANGOTE CEMENT
-2.34
30.44
2,695,126,843,392.00
NIGERIAN BREWERIES
11.89
13.05
1,129,976,168,448.00
GUARANTY TRUST BANK
42.07
7.70
681,331,785,728.00
NESTLE NIGERIA
-3.15
7.25
642,051,538,944.00
ZENITH BANK
18.47
5.11
447,400,050,688.00
ECOBANK
-40.28
1.99
236,903,481,344.00
LAFARGE
-51.81
2.31
221,823,926,272.00
SEPLAT PETROLEUM
72.79
2.18
193,205,141,504.00
UNILEVER NIGERIA
11.17
2.05
181,598,208,000.00
ACCESS BANK
27.30
1.78
159,103,844,352.00
Source: Bloomberg

Seplat petroleum Nigeria Plc the 8th most capitalized stock posted the highest return among the large cap stocks, with YTD returns of 73 per cent, beating Dangote Cement Plc as the most capitalized stock at the NSE posted a negative YTD return of 2.34 per cent.

Overall, 60 per cent of the ten most capitalized stocks put smiles on the faces of their investor, having yielded YTD average returns of 31 per cent as 40 per cent dampened the expectations of their investors with negative YTD average returns of 24 per cent.

Conversely, 40 per cent of the least capitalized stocks with published returns data seem to have justified investors’ expectations as they increased in value YTD with 13 per cent returns, whereas 60 per cent of the stocks trudged the path of negative value with average YTD returns of 15 per cent.

Analysis of the returns data shows that with YTD returns of 30 per cent, Meyer Plc, the 6th least capitalized stock, added the highest value to its shareholders with a returns performance that ranks behind that of only two of the ten most capitalized stocks, Seplat Petroleum (73 per cent) and Guaranty Trust Bank (42 per cent).

Overall, Dangote Flour Mills Plc (DFMP) with a value of N18.5 billion that that makes it  the 44th most capitalized stock thrilled investors the most as the Food, Beverage and Tobacco stock returned 232 per cent YTD.

United Capital Plc, Total Nigeria Plc, Mobil Nigeria Plc, and Seplat Petroleum Development Company Plc joined DFMP as the top five performing stocks, having posted YTD returns of 139 per cent, 121 per cent, 101 per cent, and 73 per cent respectively.

The two worst performing large cap stocks diminished the YTD returns narrative of their peers by an average of 46 per cent as the YTD average returns of the group would have been in the positive zone at 22 per cent.

Lafarge Africa Plc and Ecobank Transnational Inc dealt the most blows to their investors’ wealth with returns of -52 per cent and -40 per cent respectively.

 

INNOCENT UNAH


by INNOCENT UNAH

December 12, 2016 | 12:20 am
12893  |   93   |   0  |   Start Conversation

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