As the bears continue to ravage the equities market, sending 15 indexes to negative territory, investors in C & I Leasing Plc, Dangote Flour Mills Plc and Chams Plc recorded growth in their investments as at the end of May 30, 2019.
The market, which declined by 17.8 per cent in 2018, remained bearish from January to middle of May when MTN Nigeria Communications Plc was listed. The Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) had recorded 9.5 per cent year-to-date (YTD), while market capitalisation fell to N10.6 trillion before MTN was listed.
Although the market capitalisation improved to about N13.6 trillion and NSE ASI improved to a YTD of 1.6 per cent, other sectoral indexes have suffered significant depreciation.
Out of the 17 indexes in the market, only two, the NSE Premium Board Index, where MTN is listed and Alternative Securities Market(ASeM) closed in the positive territory.
While MTN lifted the Premium Board Index to YTD gain of 11.16 per cent, the ASeM Index ended with a YTD appreciation of 1.44 per cent. Other indexes recorded YTD declines between 0.76 per cent and 20.9 per cent.
Similarly, most stocks are counting their losses and unable to rise above the bear run.
However, C & I Leasing Plc, Dangote Flour Mills Plc and Chams Plc have fetched their shareholders significant capital gains. For instance, C & I Leasing Plc recorded the highest growth of 304.5 per cent as the stock rose from N1.78 at the beginning of the year to N7.20. Dangote Flour Mills Plc followed with 145.9 per cent, appreciating from N6.85 to N16.00. Chams Plc rose 90 per cent from 20 kobo to 38 kobo.
Thomas Wyatt Nigeria Plc grew by 73.9 per cent, while Caverton Offshore Support Group Plc rose by 33.8 per cent, just as Japaul Oil and Maritime Services Plc appreciated by 33.3 per cent.
Union Bank Nigeria Plc and Sterling Bank Plc chalked up 22.3 per cent and 21 per cent in that order among others. But the growth recorded by Dangote Flour Mills followed investors’ reactions to news of its planned sale to Olam for N130 billion.
On the other hand, C & I Leasing share price was boosted by investors’ renewed demand following expectations that the company’s diversification into marine industry would improve its financial performance and enhance return to shareholders on the long run.
The Managing Director of C & I Leasing Plc, Mr. Andrew Otike-Odibi had said the firm’s journey into marine sector as a service provider for the oil and gas sector, which started in 2010 and has culminated in the ownership of over 20 vessels consisting of crew boats, pilot boats, patrol boats, and platform support vessels for providing services such as line and hose handling, berthing and escort services, mooring support, fire-fighting, pollution control, security and floating and self-elevating platforms.
“This is clearly reiterate our commitment to growing our marine services business and gaining leadership in the field. It is hoped that this buyout will further the company’s drive to restructuring and repositioning our marine business for enhanced profitability,” he said.