Companies on the Nigeria Stock Exchange (NSE) index rose at their best pace in the year to date December 2017. The NSE recorded the most growth in value of listed eleven (11) equities.
Research by BusinessDay shows the best performing firms had the highest year to date all share indexes. The growth of the best performing stocks increased the NSE-all Share by 235.40 points or 0.6 per cent to 37944 on Friday December 1st from 37709 in the previous trading session.
The total stock year to date returned about 41 per cent to investors, a value higher than its 35.1 per cent for the ninth month ended 2017, which was more than twice yield of Treasury Bills- during the period under review.
The best performing stocks are a diverse group that includes firms from NSE Banking Index, Consumer Goods Index, Oil/Gas Index, etc.
The year-to-date top gainers were International Breweries up by 212.65 per cent, followed by Fidson Plc., 199.22 per cent and Dangote Sugar Refinery Plc., 191.49 per cent. They trade at N 57.84, N3.8 and 17.64 Naira per share respectively.
The rest are First Bank of Nig. Plc. (106.27 per cent), Airline Services & Logistics Plc. (134.00 per cent), C & I Leasing PLC (170.00 per cent), IBTC-Chartered Bank Plc. (166.67 per cent), Dangote Flour Mills Plc. (125.88 per cent), Fidelity Bank Plc. (107.14 per cent), United Bank for Africa Plc. (119.11) per cent and May & Baker Nigeria Plc. (187.23 per cent). They are going for N7.01, N5.95, N1.14, N41.8, N9.9, N17.64, N9.9 and N2.7 respectively.
Analysts predict a good year for the stock market following sound economic fundamentals so far.
An analyst said “I predict a bullish market for the exchange as the economy is responding positively”. “Considering the current decision of the MPC to retain lending rate at 14%, the naira appreciation against the dollar at N306 and the current performance of the ‘Investors and Exporters’ (I&E) FX window attaining its highest value of over N20billion since inception, I foresee a better performance of the stocks”.
“The pace of total economic recovery from recession and budget performance would dictate trading pattern in the coming year”.
“Selecting stocks ahead of 2018 requires more due diligence as the impacting factors that drove bearish run in 2016 are not largely resolved and still remained overwhelming,’’said another analyst.