Companies With The Biggest Growth in June

The Nigerian stock market closed bearish for the month of June, compounding deficits for the year to N1.3 trillion as investors took more cautious bets.

The NGX All-Share Index which tracks the general market movement of all listed equities on the Nigerian Exchange declined month-on-month by 1.38% from 38,437.88 points in May 2021 to 37,907.28 in June 2021.

In a bid to shelter themselves from the country's ravaging inflation, investors began to pull back their equity stakes to invest in the Fixed income space.

This, however, does not change the fact that there were notable individual winners at the end of this period, some of which we will be taking a look into in this article.

By tracking market activity on the Nigerian Exchange, Allnews discovered June's best-performing companies based on stock growth.

4. Morison Industries Plc

This health-sector specialist has dominated the Nigerian stock market this year and gained 35.92 percent in the month of June to rank at fourth place.

After a bearish run in 2020, Morison Industries regained its allure this year as investors went bargain hunting on speculations that the company's pandemic-induced losses were over.

MORISON started the month at  N1.03 but has since then rallied to N1.40 per share, bringing its market capitalisation to N1.38 billion.

3. Vitafoam Nig Plc

After a slow start to the year, Vitafoam had a ceiling-breaking run in the second quarter of the year, which includes its 40-percent growth in June to be the third-best performer for the month.

Vitafoam is a leading manufacturer of polyurethane foam products and specializes in the production and sales of mattresses, pillows, and other foam products. Investors began to roll in their bets on the company after it released its unaudited results for the first quarter of the year at the end of April, in which it posted a 65.5 percent year-on-year growth in revenue to N10.7 billion. It also posted a 76.7 percent year-on-year profit growth of N1.4 billion.

At the beginning of June, VITAFOAM was trading at N11.20 but towered through the month to close at N15.40 per share. Vitafoam has added to its gains already this month and its market capitalisation now stands at N20 billion. 

It is also noteworthy that Vitafoam has now doubled its share price this year and is the fifth-best year-to-date performer.

2. Honeywell Flour Mills Plc

This pasta-producing giant had a remarkable run for the month of June as it saw its stocks appreciate by 44 percent, making it the second-best performing stock for the month.

The Otudeko-led company pulled investor interest after it disclosed its 2020 audited full-year financial result for the period which ended in March 2021. Honeywell reported that it grew its bottom line by 73.1% from N650.49 million recorded in 2019 to N1.13 billion in the said period.

As a result of kindled investor interest, HONYFLOUR grew from N1.13 to N1.67 in June, raising its market capitalisation to N13.24 billion.

1. Linkage Assurance Plc

This medium-capitalised financial institution saw its stocks rally as much as 54.5 percent in the month of June, making it the best performer on the Nigerian Exchange for the month.

Linkage Assurance's stocks attracted investors mostly because of its low prices, as the month of June had a lot of bargain-hunting activity.

LINKASSURE was trading at 55kobo for the most part of June but rallied over 54 percent to end the month at 84kobo per share, raising its market capitalisation to N11.9 billion.

Investors might however want to take caution with this stock as it has been highly volatile this year.

As we move into the month of July, we expect the investing public to react to a couple of market triggers including the release of Q2 earnings by companies, inflation rates, and bond market prices and yields.