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

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.