Lafarge, Stanbic top best performing stock in Q3

Lafarge Africa, Nigerian Breweries, Stanbic IBTC, United Capital and FTN Cocoa were the  best-performing stocks in the third quarter of 2020 (July – Sept’20).

The third quarter of the year was a recovery period for the Exchange, as the All Share Index grew by 9.61% to close the gap caused by the negative performance it endured in the first quarter of the year – during the heat of the COVID-19 pandemic.

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It also recorded a 14.92% positive growth in the second quarter.

The Cement manufacturing company grew its stock value by as much as 50% between July and September 2020. As at 30th June 2020, the stock of Lafarge was worth N10 per unit of share but grew to N15 as at the last trading day of September – with a market capitalisation of N241.6 billion.

A cursory look at the Q2 2020 financial performance, shows a 5% year-on-year decrease in revenue generated. However, a reduced cost of sales helped improved the company’s gross profit by 10% and a subsequent 78% increase in profit before tax at N19.38 billion.

The second on the list is the brewery giant, Nigerian Breweries – the makers of Star Lager, Fayrouz, Goldberg, and many other consumables. It grew its stocks by 35.73% from N36.1 as of 30th of June to N49 per share at the end of Q3 2020. The market capitalization also closed at N391.8 billion as at the review period, being the second most capitalised consumer goods firm – only behind Nestle Nigeria.

The third most capitalised bank on the stock exchange is also the third on the list of best-performing stocks in Q3 2020, growing its stock by 33.88% from N30.25 per unit of share recorded as of June 30th to N40.5 at the end of trading in September – with a total market capitalisation of N449.8 billion.

In the same vein, the Q2 performance of Stanbic IBTC indicates an 11% increase in gross earnings, which permeates into 32.2% increase in profit before tax – from N21.1 billion recorded in Q2 2019, as against N27.9 billion in the review period.

United Capital, the financial and investment service firm recorded a 30.59% increase in its stock value, as it moved from N2.55 per unit of the share as at June 30th to N3.33 as at the end of September.

This growth places United Capital in the fourth position, as one the best-performing stocks between July and September 2020.

FTN Cocoa Processors Plc also made the cut as a unit of its shares was valued at 20 kobo as at June 30th. However, it grew by 30% to N26 kobo as at the end of trading on 30th September 2020, leaving its total market capitalisation at N572 million.