Top 10 performing stocks : NIGERIA

 

The top 10 performing stocks last week were the shares of Unity Bank Plc, Cutix Plc, Champion Breweries Plc, Glaxosmithkline Plc, Neimeth Plc and A.G Leventis Plc. Others were United Bank for Africa (UBA) Plc, NASCON Allied Industries plc, Beta Glass Company Plc and Unilever Nigeria Plc.

Unity Bank Plc topped the list, rising by 24.62 per cent or N0.32 to close at N1.62 from N1.30 per share. Last year, the bank set out to raise about N39 billion through rights issue to its existing shareholders and private placement to boost its working capital, branch development and to also improvement its information technology system. Early this year, the bank undertook share reconstruction to reduce the number of its outstanding shares. Before the reconstruction, Unity Bank had outstanding shares of 116.89 billion ordinary shares of 50 kobo each.

With the one-for-10 exchange ratio, the bank was left 11.69 billion ordinary shares by the end of the share restructuring, cancelling about 105.2 billion ordinary shares. Also in 2014, the bank returned to profitability having recorded N13.6 billion in profit before tax for the year ended December 31, 2014 from a loss position of N33 billion as at December 2013 under the management of the erstwhile Managing Director, Mr. James Semenitari. Building on the success story, the bank achieved an 11 per cent growth in profit before tax for the half year ended June 30, 2015 as the figure grew to N8.774 billion from N7.898 billion a year earlier. Similarly, profit after tax grew by 11 per cent to N7.897 billion up from N7.108 billion the previous year, while the bank’s revenue inched up to N33.56 billion from N30.85 billion in the same period in 2014, indicating eight per cent increase. The bank emerged the “Best Bank in Agriculture Financing” at the BusinessDay Annual Banking Award last year.

Cutix Plc trailed far behind with 8.43 per cent or N0.14 increase to close at n1.80 from N1.66 per share. The company has consistently won the NIS Quality Certificate Award of the Standard Organisation of Nigeria SON every year since 2003. Recently, the company’s quality management system was certified by the SON as conforming to the ISO 9001: 2000 standards. For the high quality of its business practices, Cutix has also won the Annual President’s Merit Award of the Nigerian stock exchange for corporate Excellence – a record seven times.”Its first quarter financial statement for the period ended July 31, 2015 showed significant improvement in all measurement indicators; profit before tax and interest expense for the period grew by 45.6 per cent to N102.55 million from N70.44 million in the same quarter in 2014. Similarly, profit after tax rose to N43.518 million from N29.004 million in 2014, indicating 50 per cent increase, while its revenue at N665.56 million was 15.7 per cent increase over N575.02 million posted a year earlier. Its basic earnings per share rose from three kobo to five kobo within the same period.

The company manufactures insulated power cables, PVC insulated power cables, polyester aluminium enamelled wire, speaker wire and cable, bare aluminium strand wire and cable, and irrigation cable.

Champion Breweries followed with 5.50 per cent or N0.24 price appreciation, closing at N4.60 from N4.36 per share. Last year, the company sourced N11.7 billion through a Rights Issue to its shareholders. It issued 6.30 billion ordinary shares of 50 kobo each on the ratio of at N1.85 per share. In the same year, Consolidated Breweries Plc completed divestment from the company through the sale of 513 million ordinary shares of 50 kobo each to Raysun Nigeria Limited, a wholly owned subsidiary of Heineken International BV. Raysun now owns a 57 per cent equity stake in the total issued share capital of Champion Breweries following the transaction.

Source: Vanguard Business: By Nkiruka Nnorom