Ruth Ibikunle
The stock market last week closed on a positive note with 1.38% growth. Year to date, the market has returned 2.92% with the All Share Index and Market Capitalisation at 105,933.03 points and N65.592 trillion respectively.
In a stock market review with the Managing Director of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
- The stock market last week closed on a positive note with 1.38% growth. What is the outlook for the new week?
The market is expecting the AFS of issuers who have elected to audit their results before rendering them to the NGX.
The reports of the concluded capital market raise by some of the banks are also encouraging and may be responsible for the uptick of prices in that sector.
From the results of the last Treasury Bills auction, it is becoming clear that the DMO may not be too keen on borrowing, especially from that sector. The rates have gradually continued to tank and discerning investor are reading the handwriting on the wall and are moving their resources back to the capital market to hedge their investments against inflation.
This action will lead to the availability of the required liquidity in the market that will help it continue to look upward; therefore, it is expected that the market may continue to close in the green for the time being.
- What is driving the growth in UDPC, Eterna Oil, Cadbury, Fidson, and Presco?
Presco plays in the agricultural sector of the economy. It is being taunted that palm oil is the new gold of the continent. And from the grapevine, it is said that both Presco and Okomuoil cannot meet with the ever-growing demand of their produce.
Remember that their produce comes from nature, They cannot increase output by increasing input.
Presco returned an eps of 10,428k from 3,286k in their UFS. Making a whopping 217% growth resulting in an earnings yield of 14.9% with its new 52-week price of N702.20
Fidson is set to benefit from the government policy as it concerns the health sector. After the exit of GSK, the first force to be reckoned with in that sector now is Fidson. Its plan to collaborate with some Chinese firms to establish an HIV/Aids vaccines manufacturing company in Lekki is a massive investment.
- Why is Sunu Assurance Trending down?
Sunu Assurance’s downward trend is largely due to profit-taking and the market’s run-of-play.
The stock closed at N5.82 on January 31, 2024, the day the UFS was released into the market.
The company grew its earnings per share from 46k to 63k, signifying a growth of 37% and with an earnings yield of 10.8%
The market would have expected better growth than that and a commensurate earnings yield.
The price has started dropping since the release of their Q42023 earning and has shed 81k.
As the market continues to weigh and compare results, the market may look back on Sunu Assurance depending on the performances of the other insurance stocks.
- Is Vitafoam a good buy at N 37.25?
In its Q12024 earnings report, Vitafoam showed a readiness to impact the market positively as they grew their earnings per share from 114k to 221k.
Savvy investors are already making a projection into the future for the performance of the stock.
If it continues in this trajectory, it tends to set more 52-week high prices as N37.25 is currently its 52-week high price.
- How attractive is FBNH at N33?
FBNH had an impressive outing in their UFS as of December 31, 2024. Growing their eps from 859k to 2040k representing a growth of 137%. This gives an earnings growth of 61%.
The factors that may be responsible for where the price trades would be the battle for the sole of the bank and some other negative information emanating from the institution. Another reason may be the dividend payout that the market has not be satisfied with.
If per adventure, the bank surprises the market with a hike in its dividend payout this time around, the price will be far higher than it is trading now.
- What are the stocks to watch?
Afriprud, Lafarge (Wapco), MTN, Oando, FCMB and a host of others