Stock Market Review: December 11, 2023

Ruth Ibikunle

The Nigerian stock market last week closed on a positive note with 0.17% growth. Year to date, the market has returned 39.59% with the All Share Index and Market Capitalisation at 71,541.74 points and N39.149 trillion respectively.

In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:

Excerpts:

The stock market last week closed on a positive note with 0.17% growth. What is the outlook for the new week?

The present phase of the market guarantees that the market closes on the positive side from week to week.

The information prevalent in the market space is still strong enough to ensure that the market will continue to look upwards, even as the year is drawing to a close.

In the same vein, the market is expected, bearing other unforeseen happenstances and shocks, to close also in the positive region.

• What is driving the growth in Multiverse? Is it a good buy at N9.39?

Multiverse is also in the business of gold mining, and if you watch the New Gold ETF in the market, you will discover that there have been a lot of activities there.

At the failure of other sectors of the world economy, Investors are jostling to hold Gold as a store of value. Market participants believed that if that is true, there would be value in Multiverse and all that it does, considering the low price at which it was trading.

The price at N9.39 is the 52-week high price of the stock, at that, investors would become wary, and the events of the week would determine whether it would be able to break that band or slow down.

To me, at the 52-week high price, the stock is becoming expensive, because the expectations are still futuristic.

• How attractive are the following stocks: Ecobank, Access, and FBNH?

The banks are having their sway at the current state of the market. The pronouncement of the CBN of the need for a possible recapitalization of the banking sector has set the prices of the banks in motion.

I think this may continue until the direction, modalities, and cut-off date of the exercise is announced by the Apex Bank.

For now, as far as the recapitalization agenda is still very much around the corner, the above stocks are buyable.

• Is Consolidated Hallmark Insurance a good buy at N1.10?

Consolidated Hallmark Holdings is the former CHIPlc. It is now a holding company. The market believed that the consolidation of the other subsidiaries had brought more value into the stock, which was why at relisting, it went from N1.09 to N1.43.

At N1.10 which is very close to the relisting price, the stock looks attractive and buyable as the market may move it back to its 52-week high price of N1.43

• What are the stocks to watch?

FCMB, Fidelity, Access, FBNH, Dangote Sugar, NASCON, Japaul Gold and a host of others.

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