The Nigerian stock market ended 2022 on a high note, with a year-on-year increase of 19.98%. The All Share Index closed at 51,251.06 points and N27.915 trillion, respectively.
The All Share Index fell as low as 43,477.48 points on November 9, 2022, triggered by profit taking and massive sell offs, nearly eroding the market’s growth that year. It appeared as if the market would end the year in the red. The bulls then pounced on the market on November 16, 2022, and haven’t looked back since, finishing the year with 19.98% growth.
Many stock prices have increased due to the recent bullish run, though many equities are still trading below their fair value.
Several equities saw significant increases in share prices during the year 2022. Wema Bank (441.67%), Academy Press (158%), Champion Breweries (134.04%), Learn Africa (88.03%), PZ (86.07%), Guinness (77.69%), Airtel (71.20%), NAHCO (71.12%), Fidelity Bank (70.59%), Presco (56.61%), BUA Cement (45.79%), Fidson (44.69%), and UCAP (41.41%) are just a few among many stocks with significant growth in 2022.
WEMA BANK
Wema Bank in last year grew its share price by 441.67% to N3.90 from N0.72.
(The Bank came second in ranking best-performing stocks in terms of price appreciation. Multiverse led the rank with 1890% growth from N0.2 to N3.98).
After the share reconstruction of the bank in last year, its outstanding shares was reduced to 12.86 billion from 38.57 billion ordinary shares. This moved the price of the stock to over N2. Since the share reconstruction, the price of Wema Bank has never looked back and eventually closed the year at N3.90.
The current price is close to its 52-week high of N4, which suggests the price of Wema might drop in the interim due to profit taking. However, for long-term positioning, there is growth potential in Wema Bank.
With the Book Value of N5.85, there is an uptrend potential of 33% for Wema Bank relative to its current share price of N3.90.
ACADEMY PRESS
Academy Press closed 2022 at N1.29 from N0.50, representing 158% growth year on year. Within the last 52 weeks, the share price of Academy Press has touched a high of N1.96.
It is trading 34.18% away from its 52 weeks high of N1.96, which implies an uptrend potential of about 34% for Academy Press relative to its current share price.
CHAMPION BREWERIES
Champion Breweries closed the year 2022 at N5.5 from N2.35. This translates to 134.04% growth, year on year.
As at January 10, 2022, there was a Mandatory Take-over Offer by Raysun Nigeria Limited for about 1.2 billion shares of Champion Breweries at N2.60. The share price of Champions Breweries has not looked back since then, closing the year at N5.50.
It is currently trading at its 52 weeks high. There may be profit-taking in the interim.
LEARN AFRICA
Learn Africa closed 2022 at N2.20 from N1.17, representing 88.03% growth year on year. In the past year, the share price of Learn Africa touched a high of N2.66.
It is trading 17.29% away from its 52 weeks high of N2.66, suggesting possibilities of uptrend potential for Learn Africa relative to its current price of N2.20.
With the Book Value of N4.56, Learn Africa is considered cheap relative to its current share price of N2.2.
PZ
PZ Cussons Nigeria Plc grew its share price year on year by 86.07% to N11.35 from N6.10. It has touched a high of N13.7 in the past 52 weeks.
It is trading 17.15% away from its 52 weeks high of N13.7, suggesting an upside potential of about 17% for PZ, relative to its current price of N11.35.
GUINNESS
Guinness Nigeria closed the year 2022 at N69.3 from N39, representing a growth of 77.69% year on year. The price of Guinness within one year touched a high of N110.
It is trading 37% away from its 52 weeks high of N110, which implies that GUINNESS can grow by 37% relative to its current price of N69.3.
AIRTEL AFRICA
Airtel Africa closed 2022 at N1635 from N955, which translates to 71.20% year on year. The price of the telecom giant touched a high of N2040 in the past 52 weeks.
There is an uptrend potential of 19.85% for Airtel Africa, relative to its 52 week high of N2040.
FIDELITY BANK
Fidelity Bank grew its share price significantly by 70.59% to end 2022 at N4.35 from N2.55. The bank’s share price touched a high of N4.65 in the past year.
It is just 6.45% away from its 52 weeks high of N4.65. This suggests there may be profit-taking in the interim.
An impressive FY 2022 result and improved dividend payout is capable of pushing the price of Fidelity Bank upward.
With the Book Value of N11, Fidelity Bank is considered cheap relative to its current price of N4.35.
PRESCO
Presco closed 2022 at N137.5 from N87.8, representing 56.61% growth yearly. The share price of Presco within last one year touched a high of N200.
There is an uptrend potential of 31.25% for Presco, relative to its 52 weeks high of N200.
They already paid an interim dividend of N2. An increase in the final dividend payout is cable of pushing the price of Presco forward beyond the current price.
BUA CEMENT
BUA Cement grew its share price by 45.79% yearly to N97.75 from N67.05. It is trading at its year high of N97.75.
It has been trading flat for the past two weeks at N97.75. There is a tendency for profit-taking by investors.
However, impressive FY 2022 earnings and improved dividend payout is capable of moving the price of BUA Cement above N100.
