Nigerian Stocks with Outstanding Gains in 2023 (+400%)
For many investors, 2023 has been a year of remarkable returns, especially for those who put their money into certain Nigerian stocks. Despite facing numerous macroeconomic challenges, several stocks listed on the Nigerian Stock Exchange (NGX) have produced stunning returns, far exceeding the 100% mark.
Nigerian Stock Market in 2023
Starting the year, the domestic stock market showcased a noteworthy growth of 19.98%. But by September 29, 2023, the growth had expanded even further, hitting an impressive 29.52%. The year kicked off with a moderate pace, registering a 5.82% gain in Q1. However, the momentum shifted significantly in Q2, with the total gain for the first half of the year reaching 18.96%.
Many experts attribute this rally to several factors:
- Policy Changes: The present administration’s decisions, like the devaluation of the naira and subsidy removal, played a crucial role.
- Inflation and Investment: With the ongoing inflationary pressures, investors actively sought opportunities that promised positive real returns.
With that backdrop, let’s delve into the top-performing stocks for the year:
- CWG: +756.44%
The Computer Warehouse Group (CWG) is a company that has done really well this year. They are at the top spot on a list at NGX because their stock price went up a lot. In just four weeks, their stock price went up by 137%. That’s the best increase among all the companies on NGX!
At the beginning of the year, one share of CWG cost N1.01. But now, it costs N7.90. That’s a big jump!
Why did this happen? Well, there are a few reasons:
- The company did well in its business and made good money.
- A lot of people bought and sold their shares.
- People feel good about the company and believe it will do even better.
In the last three months, people traded 116 million CWG shares. They made 2,439 deals, and the total money involved was NGN 490 million. On average, in each trading session, people traded about 1.84 million shares. This made CWG the 49th most popular stock to trade on NGX.
There are other companies that also did well. Here are some of them:
- FTN Cocoa: Their stock price went up by 420.69%.
- Nascon: Their stock price increased by 368.47%.
- Golden Breweries: Their stock grew by 288.89%.
- NAHCO: They saw a rise of 272.66%.
- INTENEGINS: Their stock jumped up by 265.79%
- MRS Oil: +637.59%
MRS Oil, a company in Nigeria, saw a big rise in its share price this year. The price went up by 637.59%, from N14.10 to N104 for each share. This made it the second-best performing company on NGX and the top one in the Oil and Gas sector.
Why did this happen? Here are some reasons:
- Company’s Money Growth: MRS Oil made more money this year. This growth means the company is doing really well, and this made people want to buy its shares.
- Profit Return: After losing money for three years in a row, MRS Oil started making profits again in 2021. In 2023, the company’s profits grew by a huge 552.72% to N2.310 billion. This is a good sign, and it made people trust the company more.
- Earnings Per Share (EPS): EPS tells us how much profit a company made for each share. MRS Oil’s EPS grew by a massive 486% to N6.74 in the first half of 2023. This was even better than what they thought they would do!
- Price Premium: The EPS for the last year is N10.34. This means people are ready to pay more than 10 times the company’s earnings for each share. This shows that people believe in the company and expect it to do well in the future.
In simple words, MRS Oil did really well this year, and many believe it will continue to do well. That’s why its share price went up so much
- TRANSCOHOT: +610.40%
People who bought shares of Transcorp Hotel at the beginning of the year for N6.25 each made a lot of money. Their investment grew by a huge 610%!
Why did this happen? Here are some reasons:
- Good Earnings: Transcorp Hotel has been making more money year after year. This pattern of earning more is called a “strong earning trajectory”. When a company makes more money, its share price usually goes up.
- People Like Hotels: Many people feel good about the hotel business right now. This positive feeling is called “favorable sentiment”. When people have positive feelings about an industry, they often buy more shares in it.
- Consistent Performance: Transcorp Hotel has been doing well for many years. Except for 2020 when they lost some money, they have been making profits consistently. This makes people trust the company more. In the first half of 2023, their profit after paying all their bills (called “profit after tax”) grew by 46% compared to the year before.
In simple words, Transcorp Hotel did really well in making money and people have good feelings about hotels. This made their share price go up a lot
- CHAMS: +481.82%
Chams Plc, a company that deals with ICT and processing systems, saw its share price go up a lot this year. However, it also faced some ups and downs recently. Its share price went down by 16.88% from its highest price of N1.54 on September 21, 2023.
Here’s what happened:
- Beginning of the Year: The company started the year with its shares priced at N0.22 each. Now, the price has gone up by a huge 481.82% to N1.28. This made Chams Plc the 4th best company on NGX in terms of share price growth.
- Making More Money: Chams Plc had a big change in its earnings, which means the money it makes after paying all its costs. In the first half of 2023, the company’s profit after all expenses grew by a massive 1,426%. This was a big change because, for three years before 2023, the company was losing money.
- Low Starting Price: Chams Plc’s share price at the start of the year was pretty low, at N0.22. When a share starts at a low price, even a small increase in its value can make the percentage go up a lot. This makes it attractive for people to buy.
In simple words, Chams Plc did very well in making profits this year, and its share price went up a lot from a low starting point. This made many people interested in buying its shares
- TRANSCORP: +430.09%
Transcorp’s shares experienced a 430.09% growth YtD. Major share acquisitions by prominent investors and a YoY post-tax profit increment of 317.50% for H1 2023 were significant contributors.
Other notable mentions in the top ten list include:
- FTN Cocoa: +420.69%
- Nascon: +368.47%
- Golden Breweries: +288.89%
- NAHCO: +272.66%
- INTENEGINS: +265.79%
Stocks that Lagged Behind
While several stocks flourished, others faced a more challenging environment. Some of the stocks that didn’t perform as well include:
- ROYALEX: -52.83%
- Champion Breweries: -31.82%
- Multiverse: -25.88%
- Airtel Africa: -21.10%
The stock market journey in 2023 for Nigeria showcased both highs and lows. Investors with a keen eye for opportunity and a deep understanding of market dynamics undoubtedly reaped significant rewards. But as always, the market remains a blend of risks and opportunities. Investing judiciously is the key