Ruth Ibikunle
The stock market opened week on a positive note with 0.24% growth. Year to date the market has returned 13% with All Share Index and Market Capitalisation at 48,270.23 points and N26.291 trillion respectively.
In a stock market review with Mr Gilbert Ayoola, the capital market expert with Ruth Ibikunle discussed the following:
Excerpts:
The market on Monday closed on a positive note with 0.24% growth. What is the outlook for this week?
The Nigerian equity market closed on a positive note last week, foreclosure positive market outlook spilling into this week Monday trading in view of investors’ sentiment pitching net in some cheap strong fundamental stocks. Therefore having more gainers than losers in terms of their value numbers coupled with available cash flow finding its way into the market.
Most of the stocks topping the front lines are stocks experiencing their first-to-second major break based on their numbers, while responding to buying interest of investors. Also other investors seeking to benefit from the stocks outperformance will often purchase the stock, further bidding its price higher and pushing the stock higher still.
What is driving the price of Guinness, Presco and BUA Cement?
The price of Guinness is driven due to the low price compared to its 52-week high of N110. While the price of Presco is rising on the aftermath of the markdown price on the company’s recent interim dividend payment of N2.00. Couple with the fact that the current market price of N120 to its 52-week high of N200 is relatively attractive having compared with its ESP of N2.65kobo.
Also is BUA Cement which began the year with a share price of N67.05 and has since gained 19.31% on price value to close at N80.00.
Market watchers however believe that investors are optimistic based on the company’s figures to turn out brighter looking at the dividend yield of N3.25.
Is Guinness a good BUY at N69.3?
The 9-month release of the company result for 2022, revealed a profit of N15.28 billion, representing a 731.23% increase from the previous year period, as revenue also grew by 38.70% with revenue appreciating by 18.11% from N42.61 billion to N50.32 billion in the current period which in addition boosted the bottom-line profit.
Going by this numbers, the company stock potend a favourable outlook earning and its a BUY recommendation.
Why is Geregu power trending down? Is it a good BUY at N110.7?
The company had its first major entrance on the NGX main board at a price of N100.00 per unit, it’s now selling for N110.70, possibly responding due to market sentiment and profit taking by some investor as a result of catch out due to its appreciation based on the current market price.
Though, there’s a development about the company, which is in discussion with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of the company’s shares. If the deal scales through as expected, it will impact the price to hitch further up towards a good BUY.
What are the stocks to watch?
On trend of the market, investors should watch stocks like GTCO, Seplat, Zenith, Conoil, Wapco, Total Energies, Cornerstone Insurance, Mansard, Nascon, Okomu, Flourmills, and many more.