Ruth Ibikunle
The stock market on Monday closed on a bearish note, declining by 0.44%. Year to date, the market has returned 26.90% with the All Share Index and Market Capitalisation at 65,036.37 points and N35.415 trillion.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
The market on Monday closed bearish, shedding 0.44%. What is the outlook for the week?
The market started the week on a bearish note amidst speculations from every corner.
Firstly, the news of the release of the inflation figure for July by the NBS and the expectation of a jump in the figure, and the attendant consequences in society.
Secondly, the news of a probable increase in the pump price of PMS from the current N568 to N700/liter
Thirdly, the sad news from the FX market of the depreciation of the Naira against the Dollar and pound, now standing at N1000/$ and N1,200/GBP.
But I have the feeling that the moment the Q22023 earnings reports from the banks begin to come in this week, the narrative will change and the market will once again have the latitude of upward looking.
What is driving the growth in Cornerstone Insurance?
What normally propel the prices of stocks on the floor is news and performance. There is a possibility that Cornerstone would have a good outing in their Q22023.
Remember, that it is an insurance stock and all the odds in the market are in the favour of the insurance sector.
But by and large, it occurs to me that the current movement in the price of Cornerstone is a run of play in the market.
Why is Okomu trending down?
Okomu has been able to hold on at the price of N265 as a result of the dearth of the board lot required to either drop or increase the price.
In its performance in Q22023, the company recorded a decline across its key performance indicators. Dropping from eps (2022) of N17.65 to eps (2023) of N16.968 representing a 3.80% decline.
The market punishes declining performances.
Is Guinness a good buy at N60.5?
Guinness Q22023 earnings reports make the market reprice the stock to N55.00. Discerning investors who understood the stock Guinness saw it as cherry-picking at that price and decided to take that opportunity to take a position in it.
The taking of position has driven the price to N60.50. But as I write, Guinness is not available at N60.50, but the market is pricing it at N66.55 but it has not established that price simply because of no board lot to confirm it.
How attractive are the following stocks: FBNH, Zenith, UBA, Access, GTCO and Fidelity Bank?
These are all banking stocks. Except for Fidelity which has released its Q2 2023 earnings report, the rest are being awaited.
The market believes that with the loss in the manufacturing sector as a result of asset revaluation and the unification of the exchange rate, the banks are going to be net benefactors.
So, a lot is expected from their Q22023.
What are the stocks to watch?
Universal Insurance, Nascon, Dangote Sugar, FCMB, Fidson and Nigerian Breweries