- Stocks to watch
The stock market in the past few weeks has been bullish as smart investors take position against expected Q3 2021 earnings of quoted Companies. The positive vibration in the market triggered by renewed investors’ optimism has pushed the market forward to return 3.71% year to date.
Q3 2021 results released so far has been fantastic except a few that reported decline in their figures. We are expecting to see more results hit the market this week as most Companies will want to meet up with the regulatory deadline for filing of their results.
Commenting on the current market mood, the MD/CEO of Global View Capital Limited, Aruna Kebira stated thus:
I still believe that to end the month of October the market will still go up. The third quarter ended in September; and because it’s a quarterly report, all quoted companies are given one month to report their returns to the market. All the results we have seen so far are not disappointing. Some of them even left loss position, like Unilever and PZ; they are leaving loss position to profit position. Those that declined are just Africa Prudential and Stanbic IBTC.
It just shows that as results are beginning to hit the market and they are being positive, and meeting the market expectation, I think the market will be responding.
I think we will see positive response from the market for the last week of October 2021.
Stocks to Watch
According Mr Aruna Kebira, MD/CEO of Global View Capital Limited, the following are stocks to watch.
FBNH:
It has been confirmed that Otedola is the single major shareholder in First Bank of Nigeria Holdings. He may not have the ability to manipulate First Bank the way he did in Forte Oil, because he was virtually the owner. But in First Bank, how many percentage is he holding? As the news of FBNH is trending in the market, there is every possibility that the price might go up.
BOC GASES:
When the news of TY Danjuma ownership hits the stock, the price went as far as N12 and it came back. Now that it is changing its logo and its name, it means that TY Danjuma is coming in strongly. I think that stock will be looking forward.
COURTEVILLE:
Courteville wants to delist and they are having a Board meeting on October 27 to consider Q3 result and to decide on whether they are going to delist. I believe that that Q3 result might actually move that stock from 40 kobo to 50 kobo. The delisting price may not be less than 50 kobo.
LAFARGE AFRICA (WAPCO):
Lafarge Africa will be meeting to deliberate on the provision interim dividend. For a company that has paid N1 dividend before, if they pay 50 kobo, I think the market will look towards that direction.
NGX GROUP:
Profit taking might drop the share price of NGX Group which will create a new entry opportunities for investors. If the price comes by 10%, it will be N19.80 which is close to the price that it traded the upper Monday. If that happens, the market will come in and will want to push it back to N25.