By Chinyere Joel-Nwokeoma
Thomas Wyatt Nigeria Plc emerged the best performing stock in percentage terms on the Nigerian Stock Exchange (NSE) in May despite not paying dividend for years.
The News Agency of Nigeria (NAN) reports that Thomas Wyatt led nine other companies to emerge the best performing stock in percentage terms during the period under review.
Data obtained by NAN showed that the company rose by 60 per cent during the period to close at 40k per share against the month’s opening price of 25k.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , attributed the growth to market sentiment.
Omordion said the kobo stock which had been comatose for years rebounded based on market forces even with poor financials and lack of dividend payment.
He said the growth would not be sustained going by the volume and transactions on the stock.
NAN reports that Beta Glass trailed with 33.93 per cent, a result of low price attraction and improved financial performance as shown in its report released to the market recently.
Other low, medium and high capitalised stocks that dominated the top gainers’ table during the period were Fidson Healthcare, Courtivelle, Dangote Cement and NEM Insurance.
Conversely, Goldlink Insurance emerged the worst performing stock in percentage terms during the period, dropping by 50 per cent to close at 20k per share.
Omordion said the stock lost 50 per cent of the month’s opening price due to price correction and market forces.
Other top losers’ are Champion Breweries, Chams, Forte Oil, Regency Insurance, Ikeja Hotel, Eterna, Neimeth International, Flour Mills and Regency Alliance Insurance.
On market expectations in June, Omordion said the market would witness mixed performances as investors rebalanced their portfolios ahead of March year-end results.
He said economic indices would likely be mixed as May inflation data might maintain an upward movement, just as the second quarter GDP could further slowdown due to the late approval of the 2019 budget.
“Investors should also take into consideration plans by the Central Bank of Nigeria (CBN) to reduce banks’ participation in government securities, while boosting private sector lending to drive economic activities and investment,” Omordion stated.
He noted that the drop in prices of major blue chips in recent times had created entry opportunities, noting that there would be speculative trading to shape the market direction going forward.
“The ongoing volatility will continue as investors and fund managers rebalance their portfolios, with eyes fixed on political space and ongoing quarterly earnings position and post-election market dynamics.
“Investors should review their positions in line with their investment goals, the strength of the company numbers and act as events unfold in the global and domestic environment.
“However, we would like to reiterate our advice that investors should go for equities with intrinsic value.
“We advise investors to allow numbers to guide their decisions, while repositioning in any stock, especially now that stock prices remain low in the midst of mixed company numbers, weak economic and market fundamentals,” he added. (NAN)