Ruth Ibikunle
The stock market last week closed on a positive note with 0.87% growth. Year to date the market has returned 1.53% with the All Share Index and Market Capitalisation at 104,496.12 points and N64.709 trillion respectively.
In a stock market review with the MD/CEO of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
- The stock market last week closed on a positive note with 0.87% growth. What is the outlook for the new week?
As the UFS (Unaudited Financial Statements) of most issuers continues to hit the market, some are showing stellar performances, the market will continue to appreciate good performance.
The market is reacting to reprice the stocks with above-average performances and punish those who fail. Albeit, we have seen more good performances in the market, therefore the ASI only has an upward path to tread.
February is in the middle of the three-month moratorium given by the NGX to issuers for the release of their AFS. The closer the time is to March, the more heightened the market’s expectations regarding the dividend declaration of various companies. Some will set new records by declaring dividends and bonuses, while others will maintain the status quo ante, and some will decline in the DPO.
But the expectation of the market is skewed in favour of a better dividend declaration and possibly a bonus from here and there.
Therefore, the market is expected to still close the new week in the green zone
- How would you rate the performance of companies based on the Q4 2024 earnings released so far?
The Unaudited Financial Statements (UFS) released so far to the market are far from being classified as lackluster.
We have seen a lot of the earnings reports as being above average, beating the market expectations. The market was taking into consideration the happenstances of 2024 and the volatility in major macroeconomic variables that shaped the year.
By and large, most companies were able to weather the storm and keep their heads above the tides.
But the main thing the market operators and participants are eagerly waiting for is the dividend declaration, which would not, except from an account that has been audited.
- Why is Veritas Kapital trending down?
The reason for the trending down of Veritas Kapital lies in the outcome of the release of its UFS Q42024.
Though they grew their turnover by 224.8% from N7.298b to N23.693b, their Net expenses from reinsurance contracts held had a whopping 450% negative hold on their earning thereby plunging the PAT into a negative return of 97%, From N2.750b to N73.42m
The market as a net discounter would move to reprice the stock of any company that came to the market with such a dismal performance.
- How attractive is Access Holdings at N26?
Access has been one stock that has not been properly priced by the market. The Bank has been on an acquisition spree and I believe they have not relented on their efforts.
Consequently, they would always need to claw back a lot from their earnings to meet with exigencies and settle coupons on their bonds. But when the company has relinquished its bonds, it would now have the latitude to declare the dividend that the market will appreciate, and the market too will move to price the stock appropriately.
But believe me, the potential in the stock would manifest to the full when the synergistic efforts results begin to roll In to impact their bottom line.
- What are the stocks to watch?
MTN, Lafarge (Wapco), AFRIPRUD, Dangote Sugar, Aradel, Tantalizers, and a host of others