The Nigeria Stock Exchange (NSE) closed on a downward trend with the All Share index down 0.12% month to date. Here is a rundown of stocks we will be keeping tabs on this week.
Dangote Flour Mills
Dangote Flour Mills is into the milling of wheat and production of wheat based products. The company was incorporated on January 1, 2006.
For the 3 months ended March 2018, revenue fell from N29 billion in 2017 to N26.2 billion in 2018. Profit before tax also fell from N3.9 billion in 2017 to N2.2 billion in 2018.
Dangote Flour Mills closed Friday’s trading session at N11.40 and is currently trading at a PE ratio of 3.69 times earnings.
Dangote Flour Mills was the biggest loser last week, hence marking a spot on our watch list. The stock shed 18.57%.
Year to date, the stock is down 6.17%, underperforming the All Share Index. This could be the end of a sell-off for the stock.
Nestle Nigeria Plc
Nestle is into the manufacture, marketing, and distribution of food products, as well as purified water.
Nestle last week released its results for the first quarter ended March 2018. While revenue increased slightly from N61.1 billion in 2017 to N67.4 billion in 2018, profit before tax dropped slightly from N14.2 billion in 2017 to N13.6 billion in 2018.
Nestle closed Friday’s trading session at N1595 and is trading at 37.22 times its current earnings.
Nestle will be closing its shareholders register this week between 7 – 11, May, hence its spot on our watch list. Investors may decide to buy the stock before this period in a bid to qualify for dividends.
Diamond Bank Plc
Diamond Bank was incorporated on December 20, 1990, but began operations on March 21, 1999. Ten years later, in February 2001, it became a universal bank. In January 2005, following a private placement, it became a public limited company.
Diamond Bank ended last week’s trading session at N2.11 and is trading at 8.5 times earnings.
Diamond bank is on our watch list this week by virtue of the impending release of its FY 2017 and Q1 2018 results.
Last week, the bank sent a notice to the NSE intimating it of a further delay in the release of its FY 2017 financial statements. The bank was however optimistic that the review would be concluded in May and the results subsequently released.
Q1 2018 results would follow suit.
FBN Holdings Plc
FBN Holdings is the holding company for tier one lender, First Bank and its subsidiaries.
FBN closed at N12.55 on Friday and is trading at 9 times earnings.
FBN Holdings (First bank) will be closing its register from May 7- 11, 2018. Investors may decide to key into the stock in a bid to qualify for dividend and then sell after.
Berger Paints Nigeria Plc
Berger paints commenced operations in Nigeria on January 9, 1959.
The company is into the manufacture and sales of paints and coatings under 5 distinct segments: Decorative/Architectural finishes, Industrial Coatings, Marine & Protection coatings, Automotive/Vehicle refinishes, Wood Finishing and Preservers.
Berger ended last week’s trading session at N9.50 and is trading at 12.3 times earnings.
The company will close its shareholders register from May 7- 11, 2018. The stock could rally a bit as investors tend to buy into a stock before its closure date, to qualify for dividends. Hence earning a spot on our watch list.
