Ruth Ibikunle
The Nigerian Stock Market last week closed on a bullish note triggered by renewed buy interest in 51 equities. The NGX All-Share Index and Market Capitalization appreciated by 1.19% to close the week at 99,378.06 points and N60.242 trillion respectively. Year to date, the market has gained 32.90%.
In a stock market review with the MD/CEO of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
Excerpts
• Last week, the stock market closed on a bullish note with 1.19% growth. What is the outlook for the new week?
The week under consideration was the last three weeks before the year rounds off and the second week before Christmas. Though the market is gearing for the Santa Claus rally, the response of some of the SWOOT stocks helped it close in the green zone. The likes of Aradel and MTN suddenly responded to the spur of the moment.
This week is the last full trading week before Christmas, and I am seeing many outbreaks of stock prices that will help the market close in the green again.
Both sentiments and stock-specific news are in the air that would move some of the SWOOT stock up and that would contribute positively to the market closing for the week.
• What is driving the growth in Golden Guinea Breweries, Africa Prudential, Tantalizer, and Conoil?
I am not sure of what drives the price of Golden Guinea but I think that whatever activities in the stock are orchestrated by the market momentum normally occasioned by bargain hunters and speculators.
The company just won a significant legal battle against international Breweries and Anheuser-Busch InBev regarding the Eagle Stout trademark.
But for African Prudential, there is a rumor that the company may be involved in a 1 for 1 bonus activity. How far that is true will be revealed in the coming days, weeks, and months.
Tantalizers have been on the steady rise since the company released its earnings report where it disclosed the current transformation in the company. The strategic investors, Food Specialties, and Organics Limited and Brinklink Africa Private Equities Limited are gearing up to take over the operations of the company. If that is done successfully, it will no longer be business as usual.
Conoil in its Q32024 reported an increase of 30.8% in its PBT. This and many other factors are responsible for the surge in its price.
• How attractive is Aradel Holdings at N550?
Aradel was listed at a price of N702.79 and rallied up to N850.10 but came as low as N401.10
At the current price of N550.00 after the stock rallied for two trading on the back of its investment into Oranto Petroleum, Aradel is trading within its buyable limit as it is close to its 52-week low and far from its 52-week high price.
• Access Bank is set to acquire Bidvest Bank of South Africa. How attractive is Access Holdings at N24.15?
The bank had been on an acquisition spree. The net effect will be felt in the stock performance when the whole exercise is consolidated and the synergetic impact is obviously visible in their books of account.
• What is currently driving the price of Oando? Is it a good buy at N68.9?
There are some rumors of a possible bonus from the company. We know that behind every rumor there is an aorta of truth. But whether there is an aorta in this one or not would be revealed after their next AGM
• What are the stocks to watch?
WAPCO, NEM, Afriprud, Honyflour, Dangsugar, and a host of other