Nov 21 (Lagos) - Yet another day of red across the board is not surprising given the CGT moves by the authorities and the rubbing of salt on investors wounds by their explanations that made no sense to most investors. They tried to make it seem better but telling us how to calculate the cost basis of entry. But they did not reduce the CGT to normal levels.
So no surprise that many would decide to just sell the stocks and move to other jurisdictions where authorities are not so full of surprises and give such arrogant responses that people have to accept like 'diktats' from the emperor.
Some of these foreign investors may totally shun the Nigerian capital markets if they have to pay 30% penalty on top of the commissions, sec fees, cscs fees. The stamp duty has been removed effective January but that is the lowest and most insignificant of the charges faced by investors. One couldn't make this up.
So let's try to forget the above (if you can) and take a look at some stocks that reported stellar third quarter results but still got sold-off. The reason is the elephant in the room that we have been talking about.
1)
Guinness Nigeria Plc (
GUINNESS ) - The Company reported very strong Q3 results but they were ignored by the market. The stock should have gone higher but came lower. The Company reported the best results out of all the breweries in Nigeria.
2)
Dangote Sugar (
DANGSUGAR )- Company reported great Q3 results, but the stock sold off as if it was bad. The market punished return to profitability.
3)
Dangote Cement (
DANGCEM ) - Another Company that has sold-off after releasing stellar Q3 results. The company is the most capitalized stock on the NGX, some would say it is the NGX index. Any movement in this stock determines which way the NGX all stock index would move towards.
4)
Transcorp Nigeria Plc (
TRANSCORP ) - The third quarter results were very strong. The stock consolidated for most of 2025 so investors would have expected it to respond in a positive way. However what we got was a negative reaction and that has shocked shareholders.
5)
MTN Nigeria (
MTNN ) - Last but not the least by any means is Nigeria's no.1 technology Company.
MTNN company reported third quarter numbers that were flawless. Debt down sharply, net assets up sharply. Sales and profit up and margins expanded. The report was a dream for any management. Also announced an interim dividend. The trailing P/E ratio is less than 14 for the true tech giant of Nigeria. Yet the stock is down sharply from its recent highs. MTN should command a much higher multiple especially when we have old school businesses commanding a multiple which are multiples of MTN's P/E ratio.
MTNN has a broadband internet network across the Country driving its data business which is experiencing very strong growth and is likely to continue that growth.
No other Company has that scale in Nigeria. They also have MOMO fintech which is growing strongly. This is no longer just a voice telecomms company, this is the tech giant of Nigeria. Numbers speak for themselves.
The above five stocks are the ones to watch whenever the CGT led selling comes to an end. We might have to wait a bit because the problem is not a small one. They are talking about 30% here and laughing at us while giving flimsy explanations.
Foreign investors could shun Nigeria markets from next year. The insecurity all over Nigeria is something that is now being discussed by politicians in the USA. US President has already suggested they could make an intervention to save Nigeria from the grip of radical Islamic terrorists. Just this month, multiple schools in various parts of the Country have been attacked and pupils kidnapped. The authorities seem more rattled by the words of the US President than the monster they have allowed to grow in the Country.
Good luck to you rest of 2025 and into 2026.