Ruth Ibikunle
The market on Wednesday closed on a bullish note with 0.49% growth. Year to date, the market ha returned 4.39% with the All Share Index and Market Capitalisation at 53,499.68 points and N29.140 trillion respectively.
In a stock market review with Mr Gilbert Ayoola, a seasoned Capital Market Expert, the following were discussed:
Excerpts:
The stock market on Wednesday grew by 0.49%. What is driving this positive vibration?
The equity market has been a beehive of activities since the beginning of the year till now, occasioned by little reset due to profit taking. So far, so good. However, the equities have continued to rally up as a result of investor’s expectations and interest bearing in mind the release of Q4 earnings report.
Many market participants and investors have remained hopeful on the height of corporate action report emerging from financial earnings results of some of the qouted companies and positive declaration of year ended 2022 dividends from MTN Nigeria Communications Plc of N10.00 and Geregu Power Plc with N8.00 dividends declared respectively.
What is driving the price of Seplat and Nestle?
The activities noticed around the shares of Nestle and Seplat are based on renewed sentiments by investors considering their low prices in line with their 52-weeks high of N1,430 and N1,440 respectively. Though both companies have had their price weight shed at different times within the NGX bourse.
Why is Guinness trending down?
The price drop witnessed in Guinness is a result of not too impressive unaudited Q2 2022 report recently released by the company which does not continue to enjoy investors support and buy.
The company, though recorded increased revenue of N118.45bn from its previous year performance of N109.12bn. It however recorded a drop in the cost of sales and also in PBT and PAT, all reporting a negative earnings drop, including EPS simultaneously.
MTN declared N10 as final dividend. Is this capable of driving the price higher
As earlier said, the current dividend announcement by MTN has continued to delight its investors who are experiencing positive movement and rally in the price of the company’s shares. This may continue till close of books of register before its price markdown. The ride may further be sustained knowing that the dividend is an improvement over the previous year with an early interim of N5.60 and a final dividend of N10 totalling N15.60 declared.
Geregu declared N8 as dividend and the price went up to N210 from N193.6. How sustainable is this price growth? Is Geregu a good buy?
A snapshot of the recent performance of company from the Q4 2022 report showed that financials under review are not particularly too good but can get better, though declared a final dividend of N8.00 per/s.
The company revenue dropped by 32.89%. Likewise, the PAT and EPS also dropped by the same margin of 50.5% on the overall performance. Though, the company’s shares have appreciated double its listing price. However, the price tempo will continue to be maintained on the ride of its current dividend before bargain hunters set in.
Fidelity and FCMB published impressive Q4 earnings. How far can Fidelity go at N5.8 and FCMB at N4.4?
The companies will continue to enjoy investor’s positive sentiments based on their impressive performance and knowing that both are within banking sector stock. Both shares have been able to achieve a new 52-week high price mark. Likewise, they’re consistent in paying dividends to their shareholders.
What are the stocks to watch?
Stock for further lookout by investors should include stocks like MTN, NNFM, Fidelity Bank, Stanbic IBTC, NGX, GTCO, Zenith Bank, WAPCO and many others.