Investors who purchased shares in specific companies at the start of the year and elected to keep their positions have reason to rejoice, as they have made profits in excess of 100% despite the macroeconomic headwinds in 2023.
The stocks of Computer Warehouse Group (CWG), MRS Oil, Transcorp Hotel, CHAMS Plc, and 27 others, listed on the NGX, have achieved returns exceeding 100% in the initial three quarters of 2023, impacting the overall market performance.
The domestic stock market closed out the year 2022 with an impressive gain of 19.98%. By September 29, 2023, it had surged even further to reach 29.52%.
The market’s performance in 2023 began at a gradual pace, with a 5.82% gain in the first quarter (Q1).
However, it gained substantial momentum in Q2, taking the first half of the year (H1 2023), gaining to 18.96%.
The rally is believed by analysts to be attributed to the present administration’s policy shifts, in naira devaluation and removal of subsidies.
Also, investors’ active pursuit of investment opportunities that yield positive real returns, especially considering the prevalent inflationary pressures, can also be seen as a motivating factor behind the market rally
These are the Top 10 Best-Performing stocks in terms of year-to-date performance as of September 2023.
+430.09% TRANSCORP
Transcorp presently ranks fifth on the NGX in terms of share price valuation, having gained 430.09% year to date.
This surge in share price could be attributed to significant share acquisitions by notable investors.
On April 28, HH Capital Limited acquired a substantial 1,999,784,173 shares, increasing its total holdings to 11,990,957,350 units, equivalent to 29.5% of the company’s entire share capital. This strategic acquisition likely had a positive impact on investor sentiment.
Furthermore, in May 2023, Dr. Awele V. Elumule also acquired a noteworthy 5.076% stake in the company’s shares.
In addition to these influential share acquisitions, Transcorp has consistently demonstrated resilience in profit growth.
The company achieved an exceptional year-on-year (YoY) increase of 317.50% in post-tax profit for the first half of 2023, amounting to a total of N16.104 billion.
This achievement places Transcorp at 19th position on the NGX in terms of post-tax profit performance.
Additionally, the company’s earnings multiple of 18.74x suggests that investors are willing to pay a premium for Transcorp’s earnings potential, signalling positive sentiment.
However, it’s worth noting that Transcorp offers a dividend yield of 0.83%, which may not be considered particularly high.
:#4 CHAMS +481.82%
Cham Plc has encountered a huge meeting in its portion cost up to this point this year regardless of late transient unpredictability, having declined by 16.88% underneath its 52-week high of N1.54 set on September 21. 2023.
The ICT/Handling Framework organization opened the year with an offer cost of N0.22 and has acquired 481.82% to N1.28, positioning it fourth on the NGX.
Chams Plc’s portion cost rally gives off an impression of being driven by the emotional shift in its profit direction.
The organization’s H1 2023 monetary outcomes, which uncovered a stunning benefit after-charge development of 1,426%, denoted a huge defining moment, from the three sequential long periods of detailing misfortunes after charge preceding the 2023 monetary year.
Furthermore, Chams Plc initiated the year with a generally unobtrusive offer cost of N0.22. In situations where a stock starts with a low beginning cost, even a slight increase in its worth can prompt a significant rate gain, making it an engaging choice for financial backers.
+610.40% TRANSCOHOT #3
Financial backers who bought Transcorp Inn’s portions at the unassuming cost of N6.25 per share toward the beginning of the year have procured noteworthy increases of roughly 610%.
This could be inferable from a solid procuring direction and positive feelings towards the neighborliness and lodging industry.
Transcorp Inn has shown consistency in profit development, aside from 2020, it recorded a misfortune after charge, throughout the course of recent years, it has shown consistency. In H1, 2023, benefit after charge became by around 46% YoY.
+637.59% MRS Oil #2
MRS Oil Nigeria’s portion cost has ascended by 637.59% to N104 per share, up from N14.10 toward the beginning of the year, putting it second on the NGX and the best-performing organization in the Oil and Gas Area.
The recent growth in both revenue and earnings of the company suggests that the share price rally is driven by its strong fundamental performance, bolstering investor confidence.
Notably the company achieved a return to profitability in 2021, following three consecutive years of reporting losses after tax. It sustained the trend in 2023, recording a 552.72% surge in profits after tax, to N2.310 billion.
Furthermore, the company has surpassed its previously forecasted 30.23% increase in Earnings Per Share (EPS) by recording a substantial 486% year-on-year growth in EPS, reaching N6.74 in H1 2023.
As a result, the trailing twelve months (TTM) EPS now stands at N10.34, which translates to the company trading at a P/E (TTM) of 10.06x, suggesting that investors are willing to pay a price premium for the company’s earnings, and an indication of positive sentiment and confidence in its prospects
#1 CWG +756.44%
In terms of year-to-date share price performance, the Computer Warehouse Group is ranked first on the NGX. The stock has gained 137% in the last four weeks, the most on the NGX.
During the study period, the company’s share price increased from N1.01 at the start of the year to N7.90.
The share price rally can be attributed to strong financial performance, a large volume of shares traded, and positive market sentiment.
Over the past three months, CWG has traded a total volume of 116 million shares—in 2,439 deals, valued at NGN 490 million over the period, with an average of 1.84 million traded shares per session, ranking the company the 49th most-traded stock on the NGX.
Others making up the top ten list include
FTN Cocoa +420.69%
Nascon +368.47%
Golden Breweries +288.89%
NAHCO +272.66%
INTENEGINS +265.79%
The Worst performers
While some equities have returned more than 100%, others have underperformed. Some of these stocks are:
ROYALEX (-52.83%).
Champion Breweries (-31.82%).
Multiverse (-25.88%).
Airtel Africa (-21.10%), etc.
