Ruth Ibikunle
The stock market on Monday continued its upward journey with a marginal growth of 0.04%. Year to date, the market has returned 14.47%
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
•The market opened the week with a marginal growth of 0.04%. What should we expect for the week?
This week is the penultimate week to Christmas and after Christmas week, the year will come to an end.
It has been a tradition in the market for the Funds and Portfolio Managers to help close most positions high in favour of their portfolios.
The year 2022 is not likely to be an exception and since there is a band limit a price can move a day, their actions had to have started in earnest.
Besides that, there is always great expectations for the incoming year at the end of every year, since the prices of stocks have experienced the worst in the hands of market participants, the upward potentials are enhanced.
Prices have ample spaces between what they are trading and their 52 weeks high to cover.
Against this backdrop and vis-a-vis the Q3 results at the market arena, I perceive that the week will return positive, even if there are intermittent burst of profit taking.
•What is driving the price of Learn Africa?
Learn Africa in their Q2 2022 showed a remarkable departure from their Q2 2021. Instead of the loss position of N126,432.00 they made a profit of N110,078 which represents 187% growth. The market forces work randomly to compensate or punish prices for their performances.
The stock has been trading at N165 since the beginning of the month and this jump is a testimony that the market is set to end the year on a high note.
• Why is Neimeth and AXA Mansard trending down?
Neimeth has been trending down since the beginning of the month from N1.40 and the N1.28k it closed on December 12, 2022
A cursory look at their last released earnings report revealed that their earnings trended down as well.
Turnover dipped by 11.3%, they experienced 140.5% loss after tax and a negative earning per share (eps) of -5.77k from an eps of 14k representing a decline of 141.2%.
The market is a discounting factor, this has to be well reflected in the price of the stock, that is what we are seeing.
•How attractive is FBNH at N11?
The big elephant is pregnant with non-public information. I still believe in its strength to weather a lot of adverse market conditions and still continue to stand.
At N11.00, FBNH still has the leverage of moving as far as its 52 week high of about N15.00 though the price has been sticking around N11.00
•What are the possibilities in Zenith Bank, Fidelity and WAPCO?
Zenith, Fidelity and Wapco are stocks we should keep an eye on. The liquidity of Zenith serves as both advantage and disadvantage. It may take a lot of efforts for the price to rally, but it will surely do when the market dynamics are favourable to it.
Fidelity has always come out with their quarterly earnings with fantastic earnings yields signifying the cheapness of the stock. It is set for the rally when the market turns fully.
Wapco has continually tried to measure up in the industry it belongs. It is the cheapest cement stock and also has the potential of catching up with the prices of other stocks in the industry.
The news about the parent company bothering on the issues of terrorism sponsorship has come and gone and that had been factored into the price and the moment the market turns, Wapco will turn with it.
•What are the stocks to watch?
I may sound too traditional about my choice of stock to watch but I will still maintain my stance. Guinness, Nigerian Breweries, Okomu Oil, Presco, Fidelity, NGX are stocks we should keep our focus on as the year gets to an end and the beginning of another year.