The Nigerian Exchange’s (NGX) top 10 stocks market valuation hits N15.61 trillion, translated to 78% of the local bourse market capitalisation, market data shows.
Big names –those dividends aristocrats- on the local bourse maintained dominance. This time, no banks made it into the four zeros or trillion naira valuation gang. Not even from the oil segment.
Dangote Cement Plc total valuation stands at N3.91 trillion amidst the management plan to buy the company’s stock back from the market.
Contrary to what some think, these pricey stocks are not market best performers. That is a key fact investors should note about taking a position in these top stocks, really.
But they are liquid with moderate volatility. Just four out of the large-cap: WAPCO, Stanbic, NB Plc and Nestlé Nigeria have delivered positive returns in 2021.
Others have actually broken value based on their market movement. However, some of these stocks declared interim dividends – this could mean a lot to investors’ returns.
Take Dangote Cement stock, for example, its stock has shed 6.08% from the beginning of the year to date, despite being one of the Nigerian stock market dividend aristocrats with minimal volatility records.
For exit purposes, the stock can be easily converted to cash.
Following closely is MTN Nigeria stocks capitalisation which printed at N3.358 trillion Friday. The Telcos stock market price has dropped 2.88% below the opening value year to date. Currently priced at N165, the stock closed financial year-end 2020 at N169.90.
MTN Nigeria recently issued N100 billion fixed rate bond in the first quarter of 2021, due in seven years, under a N200 billion bond programme to refinance existing debt and support network expansion.
The group told analysts at a conference call that it issued debt to optimise its funding costs.
“Our priorities for 2021 remain unchanged which is to achieve double-digit revenue growth,” Chief Executive Karl Toriola said on the call.
In the first quarter of 2021, MTN Nigeria pretax profit rose 33.9%. The company plans to invest N60 billion over the next three years to expand broadband access across the country.
MTNN price-to-sales ratio is 2.38. The company has an Enterprise Value to EBITDA ratio of 5.67 and most analysts have MTN Nigeria in a buy rating bucket due to its strong earnings position.
This company is expected to release its second quarter of 2021 financial statement by July 29, 2021.
BUA Cement stock has suffered price knocked off in 2021. Traded at N70 on Friday, the stock has lost 8.21% from the beginning of the year to date, a big player among the cement oligarchs in Nigeria.
Airtel Africa stock was disturbed by a sell-off. Investors’ profit-taking activities had plunged the company’s stock by 10% a day and it is yet to recover.
Still in the trillion naira capitalised stocks gang, Airtel Africa has shed 29.44% of its opening price in 2021 and it is very unlikely to see a rebound in the company’s stock except for strong earnings surprise in the second quarter result.
This bellwether stock was valued at N1.74 trillion by investors on Friday at a market price of N601. The Telcos Company’s profit dropped 8.4% year over year in the fiscal year ended March 31.
The telecommunications company’s full-year attributable net profit fell to $339 million from $370 million.
Thus EPS declined to $0.09 from $0.103, mainly due to prior-year exceptional items and a one-off derivative gain.
Though, it revenue grew 14.2% year over year to $3.91 billion during the reporting period thanks to growth across all regions, as well as improvement in revenue from voice, data and mobile money.
The board proposed a final dividend of $0.025 per share, down from $0.03 per share, the dividend is payable on July 23 to shareholders of record June 25.
Recently, Airtel Africa sold a tower portfolio in Tanzania to a joint venture between SBA Communications and Paradigm Infrastructure for about $175 million.
Of the total, the telecommunications company will receive about $157.5 million upon completion, which is expected in the second half of fiscal 2021.
The deal detailed that the remaining amount will be paid in instalments following the completion of the transfer of the remaining towers.
Airtel Africa said it will use the proceeds to invest in network and sales infrastructure in Tanzania and for distribution to the government and reduce its debt.
Nestlé Nigeria was valued at N1.221 trillion on Friday after its market price closed at N1,541. The company had recorded a strong rally amidst the stock market rout.
This stock has low volatility and its movement could be significant. Despite the downward trend in the local bourse, the stock price has been flat, advantage derived from its mild volatility and strong liquidity – also a dividend aristocrat with a strong history of payments.
It was a busy week for markets, which were overwhelmed by macroeconomic indicators and the first half-year results expectation as investors rebalance their portfolios. Also, the nagging issue of inflation returned to the forefront, but concerns were quickly dispelled following a three months disinflation record – April to June 2021.
With yield slowdown in the fixed income space, it is more likely to see retail investors making a reverse into equity space. The last pension assets report shed insight into the activities of the Pension Fund Administrators and where they are putting the money.
Money, they say, goes to where it is treated well. PFAs bet large in the money market instruments, according to Pension Commission’s report for April.
Where would Nigerians invest their money in the second half of 2021? Watch out for our market review here.
