Ruth Ibikunle
The stock market on Thursday closed on a positive with 0.61% growth. The All Share Index and Market Capitalisation stands at 54,646.38 points and N29.769 trillion respectively.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The stock market on Thursday grew by 0.61%. What could be driving this?
Investors have been cautious about the coming elections since the beginning of the month of February, but as the elections are coming closer, investors have factored in these uncertainties and the market has already discounted that in the price of stocks.
February is also ending on Tuesday next week and most companies, especially those that are influential in the market have elected to submit their audited earnings report to the market in sixty days which is culminating to the end of the month.
Consequently, the market is optimistic of inflow of dividends that would be in the neighbourhood of 10% dividend yields.
Taking positions to participate in that has the capacity to advance the market.
UCAP is likely to release its Full Year earnings by February ending with probable dividend payout. Is this likely to drive its price further?The release of Q4 2022 earnings release and the consequent declaration of dividend by UCAP will definitely have an impact on the price of the stock but it now depends on the quantum of the dividend declared and its yield in comparison with the current price.
The price of UCAP over N14.00 can only be advanced beyond that price with a more than 10% dividend yield.
•What is driving the price of BUA Foods?
The price of BUA Foods is being impacted with the run of play in the market. Investors are earnestly waiting for the declaration of dividend and being optimistic about that, prices are responding commensurately.
• What are the possibilities in Zenith, Access, UBA and GTCO and Nigerian Breweries?
Zenith and GTCO dividend declaration are almost sure, N2.80k and N2.70k respectively that would culminate to dividend yields of over 10%.
There is also the likelihood of capital appreciation. So position taking in these two stocks is a win-win against their Q42022 earnings releases
Access and UBA are also seen as peer like Zenith and GTCO, positions in them too is a sure win in both capital appreciation and dividend declaration.
What are the stocks to watch?
Nigerian Breweries, Honeywell Flour, Flour-mills of Nigeria, MTN, Wapco