The NSE All-Share Index and Market Capitalization depreciated by 2.38% to close the week, November 2nd, 2018 at
32,124.94 and N11.728 trillion respectively.
Similarly, all other indices finished lower with the exception of the NSE ASeM index that closed flat.
- NSE Consumer Goods Index (-2.72%)
- NSE Premium Index (-3.09%)
- NSE Main Board Index (-1.73%)
- NSE ASeM Index (0.00%)
- NSE 30 Index (-2.39%)
- NSE Banking Index (-0.38%)
- NSE Insurance Index (-2.96%)
- NSE Consumer Goods Index (-3.25%)
- NSE Oil/Gas Index (-7.8%)
- NSE Lotus II (-2.81%)
- NSE Industrial Goods Index (-4.06%)
- NSE Pension Index (-2.86%)
Here are top gaining stocks for the week:
- Presco Plc – The stock price increased from N53 to close the week at N59.85, 12.92%
- Neimeth International Pharmaceutical Plc – The stock price increased from 54k to close the week at 60k, 11.11%
- Consolidated Hallmark Insurance Plc – The stock price increased from 30k to close the week at 33k, 10%
- Newrest ASL Nigeria Plc – The stock closed the week at N6.6, from N6 representing 10% growth in 7 days.
- C & I Leasing Plc – The stock started the week at N2.55 and appreciated by 9.8% to close at N2.80.
- Livestock Feeds Plc – The stock opened at 52k and appreciated to 57k, representing 9.62%.
- International Breweries Plc – The stock price went from N31 to close the week at N33.55, 8.23%
- Learn Africa Plc -The education stock opened at N1.10 and close the week at N1.18, 7.27%.
- Mutual Benefits Assurance Plc – The insurance stock started the week at 28k and appreciated to 30k, 7.14%.
- Sterlings Bank Plc – The banking stock also appreciated by 6.67% to close the week at N1.6, from the N1.5 opening price.
Stocks to Watch:
- Newrest ASL Nigeria Plc
The company released its Q3 results with revenue and profit jumping to the roof. Based on the 42% increase in top line and 293% growth in Q3 EPS, Newrest ASL has surpassed its 2017 full-year earnings by a wider margin.
Our TTM EPS on this stock is N1.97, which on a 15% adjusted discount rate, presents a fair value estimate of N13.
Verdicts: The stock had already risen by 10% in the last 7 days, investors might need to wait for a dip on profit taking or buy available offers at not more than N7.
Year to date, the stock is up 10.92%.
- Sterlings Bank Plc
The bank released an impressive result with double-digit growth; Q3 revenue grew by 21%, profit before and tax after increased by 30.7 and 38.1% respectively. The bank’s customer deposit increased from N684 billion to N723 billion, 5% growth.
As a loan driven bank with loan/asset ratio of 61% (an increase from 55%), Sterlings bank demonstrated its capability to utilize customer deposits as a loan; interest income from loan and advances to customers increased by 20%, from N58 billion to N70 billion.
Based on a TTM EPS of 37k and an adjusted discount rate of 15%, we assign a fair value of N2.46, 53% upside potential from the price of N1.6.
Year to date, the stock is up by 48.1%.
Disclaimer: Please do your homework, this is not a buy or sell recommendation.
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