Ruth Ibikunle
The Nigerian stock market last week closed on a positive note with 0.09% growth. Year to date, the market has returned 30.54% with the All Share Index and Market Capitalisation at 97,606.63 points and N56.088 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 positive note with a marginal growth of 0.09%. What is the outlook for the new week?
The stock market is witnessing the effect of the expectation of Q32024.
The stop rate for the last TB primary market auction also shows a decline in the interest rate, signifying a decrease in the yield.
When the earnings report begins to cascade into the market, the market will continue to return to the green zone.
• What drives the growth in Mecure, University Press, and LASACO Assurance?
Mecure witnessed a strategic investment in its operations, showing the confidence of investors in the stock. Also, remember that Mecure is in the health sector parading equipment and diagnosis that is demanded daily.
The NGX suspended Lasaco for not rendering their Q22024 report on time.
The reported results showed a remarkable improvement in their earning
Growing its PAT by 604%, PBT by 551% eps in that same direction.
The market appreciated its efforts especially when the stock was released to be traded immediately after the result was published.
But because there is no corporate action behind the release of the result, the stock might not set a new 52-week high price.
• Nigerian Breweries has extended its Rights Issue offer to October 18. How attractive is the stock?
Nigerian Breweries was once a darling of investors. What has put its knees on the ground stemmed out of the devaluation of the Naira and its negative attendant consequences.
What the NB board is looking at is to de-lever its balance sheet with the proceeds of the offer and also to have enough working capital to take on new production.
If the funds so generated are put into judicious use, the company would bounce back, therefore it would be worth the while of the investor who already has a position in the sock to take up their rights.
• Is Oando tired? How attractive is the stock at the current price of N70?
Oando has been responding to information placed by the issuer at the marketplace.
The price of the stock is waiting for the proposed release of its 2023AFS, Q12024, and Q22024.
That would to a great extent determine whether the stock is tired or not, If the company goes ahead and declares both interim and final dividends, which they have done before, then the price will prove to the market that its journey northward has just begun.
• Geregu Power has published its Q3 2024 results. Significant growth is recorded in the Company’s top-line and bottom-line figures. How attractive is Geregu Power?
The price of the stock has crossed the N1000 mark. Investors are always looking forward to impressive rewards in relative terms.
At the price of N1,150, how much dividend would the company pay that could amount to a yield of 5% or 10%?
To that extent, how far the price can move northward from the current price is not given. It could be sticky at this price for a fairly long time.
• What are the stocks to watch?
UBA, Transcorp, Oando, Fidson and a host of others