Ruth Ibikunle
The Nigerian stock market last week closed on a positive note, returning 1.80% week on week. Year to date, the market has returned 2.45% with the All Share Index and Market Capitalisation at 105,451.06 points and N64.303 trillion respectively.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
• The stock market last week closed on a bullish note with 1.8% growth week on week. What is the outlook for the new week?
Last week was the first full trading week in the year’s first month. At the beginning of each cycle, there are predictions physically, spiritually, and metaphysically.
Most of these predictions are reflected in the trading at the beginning of the year, with the expectation that they will hold.
Be that as it may, MTN, one of the SWOOT stocks made a resounding comeback on the back of the information that the application of the telecommunications companies to the FGN for a 100% tariff increase has gotten a nod from the government. Albeit not 100%
But the information was material enough to warrant the stock rallying for two days gaining the maximum 10% for each day.
This is the third trading week of the year. The year is still pregnant and delivery is not expected in the third week, therefore the market’s performance would be mixed for the week. But the cumulative effect at the end of the day would be a gain.
• What drives the growth in Multiverse, Honeywell Flour, MTN, and Transcorp?
Multiverse is recovering its lost ground. The stock was beaten by the market from a 52-week high price of N17.00 to about N5.00 which is very close to its 52-week low price of N4.80.
It was identified by the market as cheap at that price and it has been neglected for a long, the market is repricing it.
Honeywell Flour is a sister company to Flourmill of Nigeria that has just recently delisted its shares from the NGX.
Before the delisting of the company, the market understood that FMN had set a control over Honeywell and the market believed that since it is only Honeywell flour that remains on the exchange, the same management would ensure a good outing for the company.
MTN responded to the information of the approval from the FGN of a possible increase in the telecommunication industry tariff
The rise in the price of Transcorp was a market momentum. The rally was short-lived in contrast to the market expectation. It went as far as N54.40 which is yet the 52-week high price but came to settle at N51.50.
• Is AIICO Insurance a good buy at N1.90?
The news about the possible recapitalization exercise in the insurance industry had led to a rise in the insurance companies’ prices.
AIICO is not standing alone in this regard.
The stock was massively sold down at N2.07 which the stock has chosen to be its resistant point. Further movement up would be determined if it can break the resistance of N2.07 which invariable is the 52-week high price.
• Most stocks in the Insurance sector trended down last week. What could be the reason?
The trending down of the prices of most insurance companies was strictly market momentum and the run of the moment.
Remember that the companies in the sector started enjoying increases in price in late December 2024 that subsisted till last week. And profit-taking was inevitable. The moment it started from one stock, every trader and investor joined the bandwagon and the selling pressure was too high to curtail, and down went the prices.
• How attractive is Honeywell at N10.02?
The N10.02 is the stock’s 52-week high price. Caution should be exercised at this moment but the stock still has the latitude of trending higher but there is also the tendency that the further rally may be delayed.
• What are the stocks watch?
Dangsugar, Nascon, Oando, Tantalizers, Afriprud, Wapco and a host of others.