Nigerian stocks closed the first quarter of year 2019 posting a combined year to date negative return of 1.24%. Apart from the Premium and Industrial Goods indexes, most other indexes posted negative returns. The first quarter witnessed a slew of cautious investing as investors weighed possible consequences of 2019 general elections, Brexit, the US economy and emerging market developments. So while investors helped stocks close higher in February with a 6.41% pop, March performance dragged the index down by 2.14%.

As we begin a new quarter, it is important to take note of stocks that performed best in the first quarter while also observing those that performed worse.

NIGERIAN STOCKS 2019 FIRST QUARTER PERFORMANCE

How many stocks gained?
Based on data from the Nigerian Stock Exchange, about 44 stocks posted gains in the first quarter of this year. Our of the 44, 26 posted at least double-digit gains and one a triple-digit gain.

Best stock for the year so far?
C&I leasing was the stock that posted best return in Q1-2019 with a whopping 349% return. This is despite the company being yet to publish its 9 months and full year results for year 2018. In its half-year results, pre-tax profits were only up 20% while revenue was only up 10% year on year.

Why C&I Leasing?
Typically, when stocks report impressive returns like we've seen above it is often tied to a potential change in shareholding structure of the company. It could mean there is going to be an acquisition, merger, potential investment or share reconstruction. This company does have about N2.28 billion in deposit for shares. A more plausible reason for the share price increase could well be the share consolidation being executed. C&I Leasing recently consolidated 4 shares existing in the company into 1. This should basically quadruple its share price.

Other top gainer?
These include the likes of ABC Transport, Dangote Flour, and Julius Berger which gained, 83%, 49%, and 37% respectively. Focussing on Julius Berger, the construction giant reported a 47% rise in earnings per share on the back of improved topline revenue. Construction contracts, for example, rose from about N135 billion in 2017 to about N178.5 billion in 2018. The company also declared a final dividend of N2 per share sending the share price northwards.

What about losers?
There were about 63 stocks on the losers list with about 35 of them losing double digits. Notable among tosers were GSK, Flour Mills, Nigeria Breweries and PZ Cussons losing 26, 22%, 22%, and 19% respectively. GSK share price drop is rather surprising considering it had a better result than the year before and also declared dividends.

Attached is a list of the best and worst stocks in the first quarter of this year.

SOURCE: https://nairametrics.com/2019/04/01/c-i-leasing-gains-349-as-nigerian-stocks-post-loss-in-first-quarter-of-2019/