Stock Market Review: December 26, 2022

Ruth Ibikunle

The Nigerian stock market last week closed on a positive note with 0.79% growth, week on week. Year to date, the market has returned 16.36% with All Share Index and Market Capitalisation at 49,706.09 points and N27.074 trillion respectively.

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


•             The stock market closed last week on a positive note with 0.79% growth week on week. What is the outlook for this week, being the last trading week for the year?

This week marks the last trading week for the year and it is a three days activities instead of the usual 5 days a week trading sessions we are used to.

The very last day of trading, which is Friday December 30 will witness reduced hours of trading. The market will close at 12.30 pm instead of 2.30pm.

Marginal investors will still be in the holiday mood while some may have not come back from their trips. Participation at the market place will low.

But Portfolio Managers will still be on prowl looking for any available opportunity to cash in big on their investment to end the year with

Against this backdrop, though participation at the market arena would be reduced, the market will witness an upward movement.

The All Share Index will look up and the market will close on a positive note.

•             What is driving the price of Champion Breweries and Ardova?

Most of these stocks have been touched by the last market situation. Ardova is an oil and gas stock and there has been an improvement in the daily crude oil output in the country.

The news is cheering to the sector and the market has no reason not to compensate the price of Ardova.

Short of this, the Q3 earnings report of Ardova was not much to write home about. The loss after tax grew from N1.24b to N4.341b

Champion Brewery last outing in their Q3 2022 wasn’t that fantastic, there was decline in their eps from 2.43k to 2.35k.

Therefore, the rally in its price could be likened to the run of play of the market.

•             Why is PZ and Neimeth trending down?

When PZ declared a dividend of N1.01 and made the mark down date as far as January 2023, the market in its usual manners drove the price above N11.00. But remember that there are a lot of investor that would have taken position in the stock at about N8 or N9.00. And in this type of market and the season, such would want to realise their profits as they may not be willing to wait for the N1.01 dividend and the rigour of claiming dividend.

This combine action is what is making the price of PZ to shed some points.

Neimeth was trading N1.33 traded on December 15, 2022 and profit taking brought in back to N1.28 on December 22, due to the momentum of the market, the price moved back to N1.35 on December 23.

It still has the potential of moving back to N1.45 it traded on December 19

•             What are the possibilities in University Press, Fidelity Bank, Geregu Power?

Fidelity Bank has always exceeded my expectations and it is good to go for me. Geregu is trading at the axis of its listing price and has also been sticky around the price, taking position in the stock at that price pose no much risk.

Definitely in the coming days, the price will look forward.

•             What are the stocks to watch?

NGX, Fidelity, GTCO, Nestle, Airtel Africa, MTN

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