Ruth Ibikunle
The Nigerian stock market on Monday closed lower by 0.89%. Year to date, the market has returned 32% with the All Share Index and Market Capitalisation at 98,703.68 points and N55.823 trillion respectively.
In a stock market review with the MD/CEO of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
•The stock market last week closed on a bullish note with 1.46% growth. It however closed lower by 0.89% on Monday. What is the outlook for the week?
The month of April usually marks the end of the moratorium period given to issuers to render their Q1 earnings report. So, we saw enough of that in the month.
It would take the market a few days to analyse the results and rank performances to help investors know from which side their breads would be better buttered.
Last week marks the beginning of a new month after most Q1 results were released and analysed and what we saw in the closing of the market last week was premised on the outcome of the Q1 results.
The market is set in motion to doing what it knows how to do best, that is, rewarding those stocks that performed excellently and meting out punishment for the laggards.
Against that backdrop, and for the fact that most results were upward looking, the market this week will return in the green zone.
•FBNH emerged as the highest gainer for last week with 32.68% growth. The rally continued on Monday, closing at N28. 25. What is driving this growth?
The story of FBNH has been told before and the fact of the matter has not changed. The presence of the big masquerade at the market square has changed the frenzy of the dance.
A discerning investor needs to be able to time this stock and ride with the waves to make good returns from its gyrations.
• How would you rate the Q1 2024 earnings released so far?
The Q1 2024 to my standard beat the market’s expectations. What we saw were sterling performances despite the headwinds that are running across the nook and cranny of the economy.
It just shows how resilient our companies could be in the face of severe adversity like the hike in rates, growing inflation, abolishment of fuel subsidy and its negative attendance consequences and the likes.
With the Q1 2024 reports my confidence in the market has once again soared and it is a signal that the market is set for another growth in 2024.
•What is driving the growth in Oando?
The news of the increase in capacity in the daily output of Oando as a result of its acquisition of Eni is what has triggered the demand for its shares by investors.
Since its case in the court was adjourned, the stock was brought to N9.00 and the news took it to N9.95, while trading on full bid.
• How attractive is NASCON at N47?
When NASCON wrote to the market concerning the suspension of the business combination of Dangsugar, Nascon, and Dangote Rice, everybody was in a hurry to jump out of the stock. It is such momentum that normally drives the price of a stock downwards.
It was on full offer for almost three weeks but if it has to trade, the backlog of offers would have to be cleared. And at that process, it must of a necessity to establish the minimum price of the day.
Also, the statement of Dangote at the Dangsugar AGM added fervor to the trading of both listed stocks.
This is a stock that has its 52-week high price of N76.76, and it is trading at N47.00, it sure means that it has upward potential to cover.
•What are the stocks to watch?
NASCON, Dangote Sugar, Japaulgold, Tantalizers, Access, UCAP, and a host of others.