Julius Berger, Okomu, Cu­tix, other stocks rally de­spite mar­ket’s N600bn loss

Business Day (Nigeria) - - LIVE @ THE EXCHANGES - Sto­ries by IHEANYI NWACHUKWU

In­vestors who at the be­gin­ning of this year took po­si­tion in stocks like Julius Berger Nige­ria Plc, Cu­tix Plc, Okomu Oil Palm Plc, Vitafoam Nige­ria Plc and Ce­ment Com­pany of North­ern Nige­ria Plc have rea­sons to smile.

Their joy comes even as the value of listed eq­ui­ties on the na­tion’s bourse de­pleted by about N600­bil­lion year-to-date (ytd).

From a year-open high of N11.721 tril­lion, the value of listed stocks on the Nige­rian Bourse stood lower on Fri­day Jan­uary 11, 2019 at N11.124tril­lion; it im­plies in­vestors have lost ap­prox­i­mately N600­bil­lion this year. Also, the Nige­rian Stock Ex­change (NSE) All Share In­dex (ASI) has de­clined to 29,830.70 points; af­ter open­ing this year 2019 at 31,430.50 points.

De­spite per­sist­ing sell pres­sure which erodes stocks value, Julius Berger Nige­ria Plc stock price has ad­vanced by 41.29 per­cent this year. Also, that of Okomu Oil Palm Plc has risen by 7.61per­cent this year while Ce­ment Com­pany of North­ern Nige­ria Plc share price is up by 3.09per­cent in 2019.

Some of the worst hit stocks so far are Ac­cess Bank Plc (-16.91per­cent); BOC Gas (-9.98per­cent); Chem­i­cal and Al­lied Prod­ucts Plc (-9.61per­cent); Cham­pion Brew­eries Plc (-22.11per­cent); and Cus­to­dian In­vest­ment Plc (-6.19per­cent).

Other big losers this year are: Dan­gote Ce­ment Plc (-6.69per­cent); Dan­gote Flour­mills Plc (-8.76per­cent); Dan­gote Sugar Re­fin­ery Plc (-8.20per­cent). Di­a­mond Bank Plc is down this year by 7.34per­cent; Eterna (-8.51per­cent); ETI Plc (-3.57per­cent); FBN Hold­ings Plc (-6.92per­cent); and FCMB Group Plc (-10.05per­cent).

Fidelity Bank Plc stock price is down by this year by 1.48per­cent; First Alu­minum Plc (-8.33per­cent); Flour­mills Nige­ria Plc (-16.45per­cent); Glax­o­smithk­line Con­sumer Nige­ria Plc (-15.86per­cent); Gt­bank Plc (-2.76per­cent); Guin­ness Nige­ria Plc (-8.33per­cent); Honey­well Flour Mills (-10.16per­cent); Ikeja Ho­tel Plc (-9.15per- cent).

“Our view con­tin­ues to favour cau­tious trad­ing in the eq­ui­ties mar­ket amidst brew­ing po­lit­i­cal jit­ters ahead 2019 elec­tions, and the ab­sence of a pos­i­tive mar­ket trig­ger. How­ever, we ex­pect pos­i­tive macroe­co­nomic fun­da­men­tals to drive re­cov­ery in the long term,” said Lagos­based Cor­dros re­search an­a­lysts in the Jan­uary 4 note.

Also, Learn Africa Plc stock price has de­clined this year by 8.82per­cent; MRS Plc (-9.92per­cent); NAHCO (-4.11per­cent); Nige­rian Brew­eries (-8.77per­cent); Neimeth (-10.26per­cent); NEM In­sur­ance (-35.93per­cent); Nes­tle (-5.65per­cent); North­ern Nige­ria Flour­mills (-9.38per­cent); Se- plat (-10per­cent); UACN (-10.77per­cent); UAC Prop­erty (-13.61per­cent); UBA (-4.55per­cent); Unity Bank (-22.43per­cent); La­farge Africa (-1.61per­cent); Wema Bank (-4.76per­cent); and Zenith Bank Plc (-5.21per­cent).

“For eq­ui­ties, per­for­mance in 2019 will be an­chored on the out­come of the gen­eral elec­tion on one hand and the change of guard at the Apex Bank on the other. Over­all, we imag­ine a flat­tish per­for­mance in first-half (H1) 2019 and a quick re­bound in sec­ond-half (H2) 2019, es­pe­cially if the out­come of the elec­tion is seen to re­sult into a smooth and peace­ful trans­mis­sion from May 29 on­ward”, United Cap­i­tal an­a­lysts said in their Jan­uary 7 in­vest­ment views.

Other stocks that have out­per­formed the NSE ASI this year in­clude Africa Pru­den­tial Plc while has gained 2.07per­cent this year; Cu­tix Plc (9.76per­cent); Forte Oil Plc (1.05per­cent); In­ter­na­tional Brew­eries Plc (1.64per­cent); and Jaiz Bank Plc (6per­cent).

Like­wise, the share price of Ster­ling Bank Plc has risen by 4.21 per­cent this year; Red­star Ex­press Plc (4.76per­cent) and Union Bank Plc (7.14per­cent). Vitafoam Nige­ria Plc is also up by 2.27per­cent this year. La­gos-based Afrin­vest Re­search an­a­lysts had last week ex­pected a bear­ish per­for­mance on the lo­cal bourse as they an­tic­i­pated sus­tained sell pres­sures based on pre­elec­tion jit­ters.

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