PERFORMANCE OF THE NIGERIAN STOCK MARKET: YEAR-TO-DATE (YTD) - NOVEMBER 12, 2018•

•PERFORMANCE OF THE NIGERIAN STOCK MARKET: YEAR-TO-DATE (YTD) - NOVEMBER 12, 2018•

In the Nigerian Stock Market, investors had capital gain of 42.3% in year 2017. This spurred a lot of investors to enter the Market to equally enjoy this huge return in 2018. Alas, such investors are losing, on the average, 15.9% year-to-date (YTD) in the Market. 

On Monday, November 12, 2018, the All Share Index (ASI) declined 0.2% to 32,143.41 points, YTD loss worsened to -15.9%, while the Market Capitalization shed N27.5 billion to close at N11.7 trillion.

In fact, a lot of stocks have literally crashed in prices, YTD.

They include the following that deprecated by more than 20.0%:

• Lafarge Africa plc: -66.6%.

• PZ Cussons Nig. Plc: -55.6%.

• Dangote Flour Mills: -51.9%.

• Forte Oil plc: -49.5%.

• GlaxoSmiteKline plc: -49.1%. 

• Flour Mills of Nigeria: -43.1%

• UAC of Nigeria plc: -40.8%.

• Cadbury Nigeria plc: -40.3%.

• Nigerian Breweries: -39.1%.

• Int'l Breweries plc: -38.4%.

• Union Bank of Nig: -37.8%.

• Dangote Sugar Ref: -35.5%.

• Access Bank plc: -25.4%.

• United Bank for Africa: -23.3%

• Diamond Bank plc: -22.7%.

• 11 plc (Mobil Oil): -22.4%.

• Chemical & Allied: -21.8%.

• Guinness Nigeria plc: -21.3%.

• Fidelity Bank plc: -20.3%.

 

PROSPECTS: 

The future of the Market is very bright, considering the fact that a lot of the companies are reporting higher profits for the third quarter ended September 30, 2018, when compared to the preceding year. 

For example, United Bank for Africa plc showed resilience and recorded a growth of 12.3% in Gross Earnings to N374.8 billion for the nine months ended September 30, 2018, up from N333.9 billion recorded in the corresponding period of 2017. It equally posted a Profit Before Tax (PBT) of N79.1 billion compared to N78.2 billion in 2017. Meanwhile, it has lost 23.3% YTD in share price.

Also, Guaranty Trust Bank plc reported Gross Earnings of N337.22 billion for the nine months ended September 30, 2018, representing an increase of 9.1% compared to N309.16 billion posted in the corresponding period of 2017. The Bank also posted Profit Before Tax of N164.245 billion, showing an increase of 9.1% from N150.032 billion recorded in the corresponding period of 2017. Its Profit After Tax grew faster by 13.3% to N142.224 billion from N125.578 billion in the nine months ended September 30, 2017. Meanwhile, it has lost 10.4% in share price year-to-date (YTD).

•ADVICE:

This is the best time to invest in companies' stocks that have good fundamentals. Once the political environment becomes positive, probably at the end of the general elections in early 2019, these shares will find their true levels once more.

But do you know what? You need an investment advisory advice from the experts! 

Dated: Thursday , November 15, 2018 @ 

4: 34 am