Though it is no longer new that over N1.3trillion of investors’ money in Nigeria’s stocks went down the drain in first-half (H1) ended June 30 but the question remains: which stocks contributed to this terrific loss?
Except for speculative buyers who may have made some money as prices of stocks moved up and down in H1, investors who held most stocks (now depleted in value) from beginning of this year till end of first half now doubt became worse off as the anticipated stable capital appreciation failed to happen.
Most of the stocks and their negative growth in H1’21 are Computer Warehouse Group (-54.7percent), FTN Cocoa (-50percent), DAAR Communications (-33.3percent), Airtel (-21.6percent), BOC Gas (-10.7percent), Dangote Cement (-9.8percent), BUA Cement (-7.6percent), Caverton Offshore Support Group (-11.7percent), Chams (-13percent), and C&I Leasing (-8.7percent).
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The aforementioned stocks and some others stated below far underperformed the entire equities market in H1, which yielded negative return of -5.87percent.
The other stocks and the rate at which their value declined in first half of 2021 are Ecobank Transnational Incorporated (-16.7percent), Fidelity Bank (-8.3percent), GlaxoSmithKline Consumer Nigeria (-12.3percent), International Breweries (-10.9percent), Jaiz Bank (-13.6percent), Japaul Gold (-19.4percent), AXA Mansard (-14.3percent), and MRS (-8.4percent).
Market trend shows that the Nigerian Exchange Limited (NGX) equities market capitalisation and All Share Index (ASI) which had opened this year at N21.057trillion and 40,270.72 points respectively stood lower at N19.760 trillion and 37,907.28 points at the close of trading on Wednesday June 30.
Also, stocks that contributed to the record decline in the market’s performance indicators in H1’21 are: Oando (-11.1percent), Stanbic IBTC (-8.6percent), Sterling Bank (-23.5percent), Transcorp Hotels (-27.1percent), UBA (-15.6percent), Unity Bank (-17.2percent), Wema Bank (-8.7percent), Abbey Mortgage Bank (-9.5percent), and AIICO (-8percent).
Likewise, investors in Neimeth International Pharmaceuticals shares lost 23.8percent of its year-open value in H1, while that of Northern Nigeria Flourmills depleted by 8.8percent in H1.
Though some of these stocks are beginning to recoup their losses H1 as investors gradually position in them – especially the value counter – ahead of their first-half (H1) 2021 corporate scorecards expected this July. Mostly favoured are companies that are well known for paying interim dividend.
“We envisage that market performance will be dictated by the performance of the H1:2021 earnings results as we enter the earnings season”, according to Lagos-based research analysts at Afrinvest in their July 5 note to investors.
“We expect mixed sentiment as some companies prepare to release their H1’2021 financial results”, GTI Research analysts said in their outlook for the week ending July 9, 2021.
