Mutual Benefits, GSK, emerge worst performing stocks in April as 70 stocks trade flat

A decline in the share prices of 67 stocks listed on the Nigerian Stock Exchange (NSE) in the month of April led to a 0.57 percent dip in the performance indicator of the NSE, the All-Share Index (ASI). Mutual Benefits and GlaxosmithKline (GSK) were the stocks that topped the list of the laggards in the review period in terms of share price performance. According to NSE data seen by business a.m., the two stocks, dropped 29 percent each. Mutual Benefits, which opened trading for the month at 34 kobo lost 10 kobo to close at 24 kobo per share. The company is yet to release its 2017 full year and 2018 first quarter results Q1.

Although GSK released its 2017 full year results and proposed a special dividend of N7.10 per every 50 kobo shares held by shareholders, its share price dropped consistently from N34 (consequent on the profit dip to N486.4 million as at 2017 year-end from N4.2 billion at 2016 year-end) to N24, after the release of its Q1 result, during the last days in April.

Q1 results shows GSK has reversed an N8.3 million loss recorded in its bottom line for the period ended March 31st 2017, declaring a profit after tax of N258.3 million as at March 31st 2018. Trailing GSK’s performance was UACN Property Development Company with a loss of 22 percent to close at N2.46 compared with an opening price of N3.15, while Japul declined by 19 percent to close at 48 kobo in contrast with the 59 kobo it opened with in the month under review.

Other laggards in the course of the month were Unity Bank, which lost value by 18 percent to close at N1 against the opening price of N1.22. A.G Leventis lost 17.9 percent to close for the month at 55 kobo per share, compared with April’s opening figure of 67 kobo.

Giving further insights into the nature of stock price movement in Nigeria’s capital market, an investment analyst at Compass Securities, explained recently that the market reacts to sensitive development or information. He urged market participants especially the companies to engage more with the capital market community in a bid to sensitize stakeholders with their activities.

He said this information could help investors make informed decisions, adding that with a little positive information the direction of declining and stagnant share prices can be reversed. Meanwhile, integrated oil and gas services provider, Oando Plc led 32 stocks listed on the floor of the Nigerian Stock Exchange (NSE) to emerge the best performing stock for the month of April.

The stock gained 52.8 percent in the course of the month, as it traded fully on April 12, the first time after a six months suspension at a price of N5.99,which advanced by N3.16 to close the month at N9.15 per share Closely chasing Oando on its heels was Learn Africa Plc, Nigeria’s largest educational book publisher.

Learn Africa’s share price grew 39 percent in April following the announcement of a 14 kobo dividend proposed to shareholders for the 2017 financial year.

Eco Transnational Incorporated (ETI) was next with a share price increase of 23 percent. This growth was largely due to the group’s return to profitability at the end of the 2017 financial year. ETI had posted a loss of N52.6 billion in 2016 but in December 2017 reported a profit after tax of N69.9 billion.

Riding on a 5 kobo dividend proposition to shareholders announced on the 6th of April, AIICO insurance share price grew 16 percent.

Nestle also increased 16 percent while Seplat’s share price appreciated 15 percent in April. Other gainers for the month were Prestige Assurance Plc, Veritas, UNIC Insurance and Northern Nigerian Flour Mills.

They increased by 13 percent, 12 percent, 11 percent and 10 percent respectively. 70 out of 169 listed companies on the NSE recorded no change in value in the course of the month’s trading activities.

One of these stocks is listed on the premium board, 62 are listed on the Main Board, while 7 are listed on the Alternative Securities Market.

By Afolabi Adesola