Stock Market Review: February 9, 2023

Ruth Ibikunle

The stock market on Wednesday closed on a positive note with 0.23% growth. The All Share Index and Market Capitalisation closed at 54,427.05 points and N29.645 trillion respectively.

In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:


Neimeth Pharmaceuticals is to allot 5 new Ordinary Shares for every 4 Ordinary Shares to shareholders. Is this capable of pushing the price forward?

Neimeth is adding 2.373b units new shares to its existing shares and they are to rank parri-passu with the existing shares.
What this type of exercise does is to dilute the eps of the company, except they can make earnings commensurate to the increase in the number of units of shares.

Besides that, the earnings per share will tend to decline and that will definitely affect their price and it will trend low.

The more the merrier but in dividend payments it is not so, this exercise may lead to a reduction in the ability and capacity of Neimeth Plc to declare a dividend

Ardova Plc will soon delist from NGX. What should investors in Ardova do?

When an issuer takes decision to delist from the Exchange, it means they want to go private.

At that, its shares can no longer be traded on the exchange and can no longer be exchanged easily.

But inmost cases, the issuer always make MTOs to the current share holders as an exit to them. If Ardova comes out with an MTO, the current shareholders should take advantage of that and those that decline to do that will continue to be Ardova’s shares holders, they will continue to receive dividends , if declared but may find it difficult to exit their positions when they want to do that.

What is driving the price of Dangote Cement?

We are in the earnings and dividends declaration period of the Stock Market. Dangote Cement has been consistent in the declaration and payment of dividends, paying even when their eps declined.

The market is positioning Dangote Cement in that perspective, so the price has no option than to appreciate.

How attractive is NAHCO at N8.50?

Nahco declare an improvement in its eps by 204% from 46k to 140k but its 52-week high price is N9.00 and it’s trading at N8.50

Except the market move to appreciate this result beyond the ordinary, the current price is very close to its 52-week high price.

The quality and quantum and yield of the dividend they will declare will determine how much appreciation the market will give the price of Nahco

Is the current scarcity of cash capable of affecting the stock market?

The market has since embraced the use of technology and stockbroking transaction by cash has been limited to a maximum of N50,000 for a long time.
Issuing of mandates has been done electronically while payment for sales has been through bank transfers.

Since from the point of giving mandates through to receiving payment of sales have not required investors to physically visit stockbroking firms, I do not see how this will affect the market.

Client deposit for share purchases also are done via bank transfers except for the fact that investors will be affected psychologically, as this time is a shift from the norms, the effect of the current happening on the stock is negligible

What are the stocks to watch?

Access, Zenith, GTCO, Presco,

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