Ruth Ibikunle
The Nigerian stock market closed on a positive note, returning 0.87% week on week. Year to date, the market has returned 31.85% with the All Share Index and Market Capitalisation at 98,592.12 points and N55.978 trillion respectively.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
- The market last week closed on a positive note with 0.87% growth. What is the outlook for the new week?
The market has started to reflect the issuers’ expectations and the actual Q2024 performances.
What we have seen so far cannot be classified as a dismal performance. It is expected that most public offers and rights issues of the banks already in the market will be rounding up this week.
To that extent, the small liquidity in the market arena would target the listed stocks and due to the performance of most stocks, we will see a better outcome for the week.
- How sustainable is the growth in the share price of Oando? Is it a good buy at N40.60?
Oando’s price took off in the neigbourhood at N18.00 and is now trading at N40.60
This is against the backdrop of their acquisition of 100% Asset of EniAgip and the court’s judgment that prevented them from going private. Another factor is the vicarious confidence of investors in the stock due to the relationship of the top management with the extant government.
At the current price, investors should be careful as those who have made substantial gains would start to exit and that might cause a panic that will drive down the price
- What is driving the growth in Japaul Gold and Academy Press?
Japaulgold wrote to the market of an intending investor in the stock at the rate of N2.50. The stock was trading below N0.90 at that period.
The market rose to appropriately price it and it went across N3.00
The rally and the rise in the price action have stayed as a result of the expectation of SEC approval of the private placement.
The rate at which the stock has woken up again from a price of N1.71 is a positive indication that SEC may have assented to the continuation of the private placement and if that is true, such placement would be listed at N2.50
- What are the stocks to watch?
UCAP, Japaul Gold, Veritas Kapital, Tantalizers, Transcorp, and a host of others.