Veritas Kapital, Geregu Power, Julius Berger, Dangote Cement, Others Top Stocks Made NGX Africa’s Best In H1

NGX Outperforms African Stock Markets

In the first half (H1) of 2024, the Nigerian Exchange (NGX) emerged as Africa’s top-performing stock market, driven by significant gains in key stocks such as Veritas Kapital, Geregu Power, Julius Berger, and Dangote Cement.

The NGX grew by 33.81 per cent, with the All-Share Index surpassing the 74,773 points mark set at the beginning of the year.

Key Performers: Veritas Kapital, Geregu Power, and Julius Berger

Veritas Kapital Assurance Plc topped the list of best-performing stocks, boasting a remarkable 162 percent increase. Geregu Power Plc followed closely with a 150 per cent rise, while Julius Berger Nigeria Plc saw a 127 per cent increase in its share price.

Veritas Kapital Assurance Plc:

Veritas Kapital saw its share price rise from N0.37 to N0.97. “Our earnings rose to N5.67 billion, marking our highest profit in ten years,” noted a Veritas Kapital spokesperson. Shareholders’ funds also grew by 35 per cent, reaching N22.04 billion in Q1 2024.

Geregu Power Plc:

Geregu Power’s share price climbed from N399 to N1000. In March 2024, Geregu Power topped the list of stocks defying interest rate hikes. “Our strategic moves have positioned us favourably in the market,” said the CEO of Geregu Power.

Julius Berger Nigeria Plc:

Julius Berger experienced a share price increase from N43 to N98. In May, its price hit N72.4, making it a top performer in the construction sector. The company recorded a 348.9 percent growth in earnings in Q1 2024.

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Strong Performance Despite Challenges

Despite increased yields in fixed income making equities less attractive, resilient investors continued to hunt for value. The NGX outperformed several African stock exchanges, including:

• Casablanca Stock Exchange (+9.99%)
• Namibian Stock Exchange (+10.06%)
• Tunis Stock Exchange (+11.15%)
• The Egyptian Exchange (+11.54%)

Other exchanges that the NGX outperformed include Dar es Salaam Stock Exchange (+15.32%), Uganda Securities Exchange (+17.93%), Nairobi Securities Exchange (+18.87%), Ghana Stock Exchange (+22.34%), and Lusaka Stock Exchange (+28.13%).

Significant Growth in NGX Major Stocks

Several other notable stocks also contributed to NGX’s success:

Dangote Cement

Dangote Cement’s share price grew by 105 percent, from N319.9 to N656.7. “We are proud to be the first company to hit the N10 trillion market capitalization on the NGX,” a company representative stated.

BUA Foods

BUA Foods recorded a 96 percent increase, with its share price rising from N193.4 to N379.9. The company’s Profit After Tax (PAT) grew by 23 percent to N112.1 billion, and turnover increased by 74 percent to N729.4 billion for the year ended December 31, 2023.

Analysts’ Insights on NGX Performance

Coronation Research analysts noted the NGX All-Share Index’s performance, stating, “The NGX All-Share Index has been trading within a 2.75 percent lowest-to-highest range since mid-April and an 8.56 percent range since the beginning of February. This calm precedes principal banks’ rights issues and capital raises.”

They further commented, “For equity markets to trade flattish is the exception, not the norm. We think these rights issues and capital raises will succeed.”

Future Outlook On NGX

With banks gearing up for rights issues and capital raises, the NGX’s performance in H1 2024 sets a positive tone for the remainder of the year.

Investors remain optimistic about continued growth and stability in Nigeria’s stock market, given the strong performance of key stocks and the overall market resilience.

The NGX’s impressive performance in the first half of 2024, led by stocks like Veritas Kapital, Geregu Power, Julius Berger, and Dangote Cement, underscores the market’s potential.

As the Nigerian equities market continues to attract investors, the outlook remains positive for the second half of the year.