The Nigerian economy just like every other economies experienced a difficult spell due to a devastating impact of the Covid-19 pandemic. Even the most sophisticated and industrialized countries were not spared from the debilitating socio-economic effects.
The pandemic distorted the outcome of well-regulated markets and led to worse returns of stock markets globally. Respite however came in the way of citizens when the discovery and development of a vaccine was announced. In light of this, most countries relaxed or partially lifted the lock down earlier imposed on their economies.
With these renewed optimism, stock markets picked up albeit sluggishly, as individuals strive to adjust to the new normal. In Nigeria for example, our Stock Exchange-NGX, ended 2020 as the World’s best performing stock, with a record Year to date returns of 50%. It was naturally anticipated that the market will pick up from where it stopped last year.
However, recent development from the NGX has shown that the stock market has failed in matching up with the momentum gathered last year. Data from the NGX by the end of June 2021, showed that Nigerian Stocks underperformed with a Year to Date performance of -5.9%.
Despite the bearish outlook so far, it might interest you to know that at least 10 stocks listed on the Nigerian Exchange Group (NGX) printed a return far above inflation rate and the general market returns. The least by these stocks was 59% in the last six months.
According to research by naijabusiness.com.ng, these 10 stocks are the best performing Nigerian stocks in the first half of the year (H1, 2021).
• LASACO Assurance Plc- 329%
Lasaco Assurance Plc topped the list of the best performing Nigerian stocks in the first six months of the year with a whopping 329% rise in value. Did I just say 329%? Yes, the share price of the firm opened trading on the 4th of January, 2021 (the first official trading day of the year) at 35 kobo and closed trading on the floor of the NGX as at 30th of June, 2021 with a share price of N1.50, indicating a surge of about 329%- Impressive, if you ask me.
Commentary: Analysts at Naijabusiness.com.ng understands that the share reconstruction exercise earlier embarked upon by the firm, acted as the catalyst for the nominal appreciation in the share price
• Morison Industries Plc- 186%
Morison Industries Plc printed the second highest market returns by any firm registered on the floor of the Nigerian Exchange Group Limited (NGX) . The firm opened trading for the year with a share price of 49 kobo and closed trading during the aforementioned period with a share price of N1.40, implying an increase of about 186%.
• Champion Breweries Plc- 144%
Champion Breweries followed closely with a share price appreciation of about 144%. Naijabusiness.com.ng gathered that the share price of the firm opened and closed trading during the periods under review at 86 kobo and N2.10 kobo respectively.
• Royal Exchange Plc- 135%
Royal Exchange Plc returned 135% within the periods under review. The firm opened trading for the year with a share price of 26 kobo and closed trading for the first half of the year with a share price of 61 kobo, implying a nominal increase of about 135%.
• Regency Alliance Plc- 109%
Regency Alliance (now known as Regal Insurance Plc) also made the elite list, printing 109% returns within the aforementioned periods. It opened trading with a share price of 22 kobo and closed trading with 46 kobo, implying a nominal increase of about 109%.
Others in the top 10 are;
• Consolidated Hallmark-88%
• Linkage Assurance-62%
• Mutual Benefit-59%