Investors who purchased shares from specific firms at the beginning of the year and chose to maintain their positions have cause for celebration, as shareholders have generated returns exceeding 100% despite the macroeconomic challenges 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.
#5 TRANSCORP +430.09%
Transcorp is currently ranked 5th on the NGX in terms of share price valuation, having gained 430.09% YtD.
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 experienced a significant rally in its share price so far this year despite recent short-term volatility, having declined by 16.88% below its 52-week high of N1.54 set on September 21. 2023.
The ICT/Processing System company opened the year with a share price of N0.22 and has gained 481.82% to N1.28, ranking it 4th on the NGX.
Chams Plc’s share price rally appears to be driven by the dramatic change in its earnings trajectory.
The company’s H1 2023 financial results, which revealed a staggering profit after-tax growth of 1,426%, marked a significant turning point, from the three consecutive years of reporting losses after tax prior to the 2023 financial year.
Additionally, Chams Plc commenced the year with a relatively modest share price of N0.22. In cases where a stock begins with a low initial price, even a slight uptick in its value can lead to a substantial percentage gain, making it an appealing option for investors.
#3 TRANSCOHOT +610.40%
Investors who purchased Transcorp Hotel’s shares at the modest price of N6.25 per share at the start of the year have reaped impressive gains of approximately 610%.
This could be attributable to a strong earning trajectory and favourable sentiments towards the hospitality and hotel industry.
Transcorp Hotel has shown consistency in earnings growth, apart from 2020, it recorded a loss after tax, over the past five years, it has shown consistency. In H1, 2023, profit after tax grew by about 46% YoY.
#2 MRS Oil +637.59%
MRS Oil Nigeria’s share price surged 637.59% to N104 per share from N14.10 per share at the beginning of the year, ranking it 2nd on the NGX and the best-performing stock in the Oil and Gas Sector.
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%
The Computer Warehouse Group is ranked 1st on the NGX in terms of share price year-to-date performance. Over the past four weeks alone, the stock has gained 137%, the best on NGX.
The company’s share price began the year at N1.01 and surged to N7.90 in the review period.
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%
Worst performers
While some stocks have returned over 100%, some others have not performed as well. Some of these stocks include:
- ROYALEX (-52.83%).
- Champion Breweries (-31.82%).
- Multiverse (-25.88%).
- Airtel Africa (-21.10%), etc.