Stock Market Review: August 28, 2023

Ruth Ibikunle

The stock market last week closed on a positive note with 1.29% growth. Year to date the market has returned 27.92% with the All Share Index and Market Capitalisation at 65,558.91 points and N35.881 trillion respectively.

In a stock market review with Mr. Gilbert Ayoola, a capital market expert, the following were discussed:

Excerpts:

The market last week closed on a bullish note with 1.29% growth. What is driving this current vibration?

The Nigerian equities market over the period of last week remained actively steady amidst profit-taking in view of high cost inflation. While investor’s take positions in some low-priced stocks, driving an increase rise in market activities, All-Share Index and growth in total market capitalization, leading the market to close on a bullish and positive note.

Many investor kept positive posture and sentiment outlook, thereby moving the market trend upward, giving rise to many of the stocks gaining momentum, recording high volume trade and gaining maximum percentage value backdrop. Companies like NASCON, SFSREIT, FTNCOCOA, TRANSCORP, IKEJAHOTEL and ABCTRANS to mention but a few all hitting a new price high._

• What is the outlook for the new week?

The outlook for the coming week looks positive and attractive in view of investors continued renewed interest and buy positions in some of the cheap and best performing stocks based on their Q2 2023 figures, which market watchers expects to further reflect in their Q3 results for the year.

What is driving the price of Transcorp? Is it a good buy at N5.80?

I expect Transcorp to maintain a steady price growth and ride based on its effort towards it expansion drive and achieving  its 2000 megawatts power generation capacity in line with recent acquisition of 60% stake in Abuja DisCo.

At the current price of N5.80, it’s a good BUY looking at the company’s prospect and future projections in creating shareholders’ value in considering the government’s plan to have a steady power supply in the country.

•How attractive is Dangote Sugar and NASCON at the current price?

The two companies are worth investing in, they’re major player in the food value-chain and industry. So, going their potentials and financial figures, they’re good viable stocks for any investor portfolio.

Added to this is the merger plans by both companies recently announced into a single entity, which I believed will further boost supply and distribution channels, thereby improving the bottom-top line earnings when completely fully merged.

•  Why is Nigerian Breweries trending down? Is it a good buy at N37.9?

The downward trend witnessed in Nigerian Breweries is due to market activities and current volatility in the brewery industry which has affected the company in respect to high related figures in its cost of operations and reported fx lost in its H1 2023 result, limiting it from recording astronomical price increase as it ought to due to the negative impact.

Ikeja Hotel announced 1 for 3 bonus for shareholders, and they are to raise additional capital via rights issue. How attractive is this stock based on the current information at the market arena?

The company performance has not been too bad, but in no doubt can still be improved. Aside from this, the issue bonus given by the company to the shareholders is to show the board gesture and further boost their confidence and loyalty in picking up their rights. At the current price, therefore, it looked avoidably cheap priced when compared alongside other similar companies found within the same sector.

What are the stocks to watch?

Stocks to watch are NASCON, Transcorp, Dangote Sugar, GTCO, Neimeth and many others.

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