The performance of the Nigerian stock market as represented by Nigerian Stock Exchange (NSE) was positive at 10.59 per cent as at the close of February this year. This is a good development that has sustained hopes that this year would be better than the last two years. Investors suffered heavy losses in the last two years due to the market meltdown; therefore, recouping part of those losses is good news to hear. However, the recoveries so far witnessed notwithstanding, some investors are yet to return to market. Others have continued to rue the decision to put their funds in stocks, saying alternative investments would have been better.


But some stock dealers and investments analysts said investors who are not excited by the two months performance are doing so because they have not really taken a look at their portfolio.Analysts said that if the investors take stock of their investments as at the end of February, they would realise that some of their portfolios have delivered good returns that would make them to cheer up and hope for more growth in their investments in the remaining months of the year.


According to market operators, this is where the need for portfolio review comes in. The Managing Director of Mission Securities Limited, Mr. Ayo Oguntayo, believes that regular portfolio review enables an investor to adjust according to the market trend or investment objectives.


“When you review your portfolio, you will see stocks that have performed to your expectation and those falling below expectation. Based on this, you can then know the stocks doing well and adjust appropriately to fit into your investment objectives,” Oguntayo said.A review of the market in the first two months of 2010 shows a mixed bag for investors. While some stocks delighted investors, other extended investors' long wait for full recovery from the losses of the last two years.


Agriculture

Among the seven stocks in the agriculture sector, only FTN Cocoa Processing Plc and Livestock Feeds Plc put smiles on faces of their investors at end of February. FTN Cocoa posted a capital growth of 63 per cent, while Livestock Feeds trailed with a growth of 21 per cent.


Okitipupa Oil Palm Plc,

which has been inactive over the years, stagnated.
Same goes for Afprint Nigeria Plc. The equity has been on suspension following the decision of directors to de-list from the Nigerian Stock Exchange (NSE) due to dwindling fortunes. Shareholders of the company have already approved the plan and they are to be paid N1.50 per share, indicating a premium of over 74 per cent above its current market price of 86 kobo.However, Presco Plc and Okumo Oil Palm Plc declined by five per cent and 4.97 per cent respectively.


Airline Services

This sector has only two equities and they both gave positive returns to investors in terms of capital appreciation. But Nigerian Aviation Handling Company Plc recorded the higher growth of 21 per cent. Airline Services and Logistics Plc posted a growth of 3.7 per cent.


Automobile & Tyre

Investors in this sub-sector of the NSE have not enjoyed much gain in their investments in recent times. Apart from R.T Briscoe Nigeria Plc that has become the saving grace with dividend payment, DN Tyre & Rubber Plc (formerly Dunlop Nigeria Plc) has been a nightmare to investors due to its dwindling fortunes. In the same vein, Incar Nigeria Plc has not delivered any good news to investors.
While DN Tyre stagnated, Incar Nigeria posted a negative return of 55 per cent. R.T Briscoe Nigeria Plc declined by 22 per cent.


Banking

The banking sub-sector is the most active and controls about 60 per cent of the market capitalisation. The decline in the market was propelled by losses recorded bank stocks. However, the sub-sector has been recording steady recovery since the year began. Out of the 20 banks listed on the NSE only Ecobank Nigeria Plc posted a capital depreciation as at the end of February. The equity declined by 46 per cent.


On the other hand, Bank PHB led the sub-sector with a capital gain of 52 per cent, followed by Sterling Bank Plc with 43 per cent. Spring Bank and Skye Bank rose by 36 per cent each. FinBank Plc went up by 32 per cent while Unity Bank Plc inched up by 30 per cent. First City Monument Plc posted 29 per cent. Intercontinental Bank Plc recorded a growth of 27 per cent, while United Bank for Africa Plc and Access Bank Plc garnered 25 per cent apiece.


Other gainers include: Oceanic Bank International Plc ( 24 per cent);Diamond Bank Plc (22 per cent); GTBank Plc, Zenith Bank (16 per cent each); Fidelity Bank Plc and Stanbic IBTC Bank Plc ( 12 per cent apiece). First Bank of Nigeria Plc (3.9 per cent); Union Bank of Nigeria Plc three per cent (3.0 per cent) and Afribank Nigeria Plc with 1.2 per cent.Analysts are overweight on most of the banking stocks going forward. They contended that the worst is over for many of the banks, explaining they will return to profitability in the current financial year.


Breweries

Stocks in the sub-sector recorded the good, bad and ugly. Three equities are in the category of the good, three are in the bad and one in the category of ugly.International Breweries Plc led those in the category of the good with a capital gain of 26 per cent. Nigerian Breweries Plc and Guinness Nigeria Plc rose by 6.8 per cent and 1.2 per cent in that order. Those in the category of the bad are those that stagnated. They include Champion Breweries Plc, Golden Guinea Breweries Plc and Premier Breweries Plc. Jos International Breweries Plc was only stock in the worst category of the ugly as it declined by 4.8 per cent.


Building Materials

The building materials sub-sector put up an impressive performance as all the active cement firms appreciated in value. Ashaka Cement Plc led with a capital growth of 40 per cent. Cement Company of Northern Nigeria Plc trailed with 27 per cent, while Lafarge WAPCO Cement Plc and Benue Cement Company Plc grew by 16.6 and 16.3 respectively. Nigerian Ropes plc and Nigerian Wire Industries Plc remained flat.


Chemical & Paints

This sector did not deliver expected growth as only two equities appreciated, two declined, while the rest stagnated. Berger Paints Plc grew by 10 per cent, while CAP Plc went up by a marginal 1.2 per cent. DN Meyer Plc suffered a decline of 39.5 per cent, just as IPWA Plc shed 8.9 per cent. African Paints (Nigeria) Plc, Nigerian-German Chemicals Plc, Portland Paints & Products Nigeria Plc and Premier Paints Plc did not move from their beginning of the year value.


Commercial/Services

Out of the four equities in the sub-sector, one appreciated, one declined and two stagnated. Redstar Express Plc was the only gainer as at end of February. It rose by 17.2 per cent. Conversely, National Sports Lottery Plc went down by 17.9 per cent, just as Courtville Investments Plc and Transnationwide Express Plc closed unchanged.


Computer & Officer Equipment


Omatek Ventures Plc led this sub-sector in terms of capital appreciation, moving up by eight per cent. Hallmark Paper Products Plc did not move due to a technical suspension of its share price as result of capital raising exercise by the firm. Also, Thomas Wyatt Plc and Wiggins Teape Nigeria Plc were flat. The company is shopping for fresh funds from existing investors via a Rights Issue. But Tripple Gee & Company Plc and NCR (Nigeria) Plc declined by 9.7 per cent and 4.47 per cent respectively.


Conglomerates

The conglomerates boasts of some leading and old names in the commercial space of the Nigeria. They include A.G Leventis, Chellarams Plc, John Holt Plc, PZ Cussons Nigeria Plc, SCOA Nigeria Plc, UAC of Nigeria Plc and Unilever Nigeria Plc.


As at the close of February 2010, investors in most of the equities smiled home in terms of capital appreciation. Unilever led with a 35 per cent, followed by UACN with 17 per cent. A.G Leventis went up by 15 per cent, while Transcorp plc and PZ Cussons rose by 4.0 per cent and 2.8 per cent respectively. SCOA Nigeria Plc depreciated by 1.14 per cent. But Chellarams Plc and John Holt Plc closed flat.


Construction

Investors in Costain (W.A) Plc enjoyed the highest capital gain with 30.7 per cent. Those in Julius Berger Nigeria Plc recorded 10.5 per cent, while Roads Plc fetched 4.8 per cent. The remaining equities - Arbico Plc, Cappa & D'Alberto, G. Cappa Plc and Multiverse Plc - stagnated.


Engineering Technology

There are three stocks in the sub-sector. One remained unchanged, the other declined and one appreciated. Cutix Plc recorded a marginal growth of 1.05 per cent while Nigerian Wire and Cable Plc shed 9.3 per cent. Interlinked Technologies Plc, which recently accessed the market for fresh funds via a Rights Issue retained its price throughout the period.


Food/Beverages

This is one of the sub-sectors that parade some of the blue chips in the stock market and going by the performance in the last two months, many of the equities have justified their status. Cadbury Nigeria Plc led the pack with a growth of 48.8 per cent. National Salt Company of Nigeria Plc followed with 40.4 per cent, while Flour Mills Nigeria Plc, Tantalizers Plc and Big Treat Plc went up by 28.6 each. Dangote Flour Mills Nigeria Plc and Nigerian Bottling Company Plc appreciated by 27.9 per cent and 26 respectively.


Others that ended the period on a positive note include: Nestle Nigeria Plc 912.7 per cent); Dangote Sugar Refinery Plc (5.9 per cent); Northern Nigeria Flour Mills Plc (5.3 per cent); and Seven-Up Bottling Company Plc (4.5 per cent).But on the downside, UTC Nigeria Plc and Honeywell Flour Mills Plc led with decline of 13 per cent each. Union Dicon Salt Plc shed 4.9 per cent.


(Source:ThisDay)