Wole Olajide
The Nigerian stock market closed the year 2022 on a bullish note with 19.98% growth, year on year. The All Share Index and Market Capitalisation closed at 51,251.06 points and N27.915 trillion respectively.
As at November 9, 2022, the All Share Index went as low as 43,477.48 points, triggered by profit taking and massive sell offs, almost eroding the growth the market has recorded that year. It was as if the market will close the year negative. Then the bulls hit the market precisely on November 16, 2022 and has not looked back, closing the year 2022 with 19.98% growth.
The recent bullish run brought about growth in the share prices of many stocks, although a lot of equities are still trading below their fair values.
Quite a number of equities in the course of year 2022 grew their share prices significantly. Just to mention a few among many stocks with significant growth in year 2022 include: Wema Bank (441.67%), Academy Press (158%), Champion Breweries (134.04%), Learn Africa (88.03%), PZ (86.07%), Guinness (77.69%), Airtel (71.20%), NAHCO (71.12%), Fidelity Bank (70.59%), Presco (56.61%), BUA Cement (45.79%), Fidson (44.69%) and UCAP (41.41%) respectively.
WEMA BANK
Wema Bank in the course of last year grew its share price by 441.67% to N3.90 from N0.72.
(The Bank actually came second in the ranking of best performing stocks in terms of price appreciation. Multiverse led the rank with 1890% growth from N0.2 to N3.98).
After the share reconstruction of the bank in the course of last year, its Shares Outstanding was reduced to 12.86 billion from 38.57 billion ordinary shares. This moved the price of the stock to over N2. Since the share reconstruction, the price of Wema Bank has never looked back and eventually closed the year at N3.90.
The current price is close to its 52 weeks high of N4, which suggest the price of Wema might drop in the interim due to profit taking. However for long term positioning, there is growth potential in Wema Bank.
With the Book Value of N5.85, there is uptrend potential of 33% for Wema Bank, relative to its current share price of N3.90.
ACADEMY PRESS
Academy Press closed the year 2022 at N1.29 from N0.50, representing 158% growth year on year. Within the last 52 weeks, the share price of Academy Press has touched a high of N1.96.
It is trading 34.18% away from its 52 weeks high of N1.96, which implies an uptrend potential of about 34% for Academy Press, relative to its current share price.
CHAMPION BREWERIES
Champion Breweries closed the year 2022 at N5.5 from N2.35. This translates to 134.04% growth, year on year.
As at January 10, 2022, there was a Mandatory Take-over Offer by Raysun Nigeria Limited for about 1.2 billion shares of Champion Breweries at N2.60. The share price of Champions Breweries has not looked back since then, closing the year at N5.50.
It is currently trading at its 52 weeks high. There may be profit taking in the interim.
LEARN AFRICA
Learn Africa closed the year 2022 at N2.20 from N1.17, which represents 88.03% growth year on year. In the past one year, the share price of Learn Africa touched a high of N2.66.
It is trading 17.29% away from its 52 weeks high of N2.66, suggesting possibilities of uptrend potential for Learn Africa, relative to its current price of N2.20.
With the Book Value of N4.56, Learn Africa is considered cheap, relative to its current share price of N2.2.
PZ
PZ Cussons Nigeria Plc grew its share price year on year by 86.07% to N11.35 from N6.10. It has touched a high of N13.7 in the past 52 weeks.
It is trading 17.15% away from its 52 weeks high of N13.7, suggesting an upside potential of about 17% for PZ, relative to its current price of N11.35.
GUINNESS
Guinness Nigeria closed the year 2022 at N69.3 from N39, representing a growth of 77.69% year on year. The price of Guinness within one year touched a high of N110.
It is trading 37% away from its 52 weeks high of N110, which implies that GUINNESS has the capacity to grow by 37% relative to its current price of N69.3.
AIRTEL AFRICA
Airtel Africa closed the year 2022 at N1635 from N955, which translates to 71.20% year on year. The price of the telecom giant touched a high of N2040 in the past 52 weeks.
There is uptrend potential of 19.85% for Airtel Africa, relative to its 52 weeks high of N2040.
FIDELITY BANK
Fidelity Bank grew its share price significantly by 70.59% to end the year 2022 at N4.35 from N2.55. The share price of the bank touched a high of N4.65 in the past one year.
It is just 6.45% away from its 52 weeks high of N4.65. This suggest there may be profit taking in the interim.
An impressive FY 2022 result and improved dividend payout is capable of pushing the price of Fidelity Bank upward.
With the Book Value of N11, Fidelity Bank is considered cheap, relative to its current price of N4.35.
PRESCO
Presco closed the year 2022 at N137.5 from N87.8, representing 56.61% growth year on year. The share price of Presco within last one year touched a high of N200.
There is an uptrend potential of 31.25% for Presco, relative to its 52 weeks high of N200.
They already paid an interim dividend of N2. An increase in final dividend payout is cable of pushing the price of Presco forward beyond the current price.
BUA CEMENT
BUA Cement grew its share price by 45.79% year on year to N97.75 from N67.05. It is trading at its year high of N97.75.
It has been trading flat for the past two weeks at N97.75. There is tendency for profit taking by investors.
However, impressive FY 2022 earnings and improved dividend payout is capable of moving the price of BUA Cement above N100.