Ruth Ibikunle
The Nigerian stock market on Tuesday closed on a positive note with 0.67% growth. Year to date, the market has returned, 2.83% with the All Share Index and the Market Capitalisation at 52,701.31 points and N28.705 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 Tuesday closed on a positive note with 0.67% growth. Is the market likely to close the week positive?
The stock market as we have it today is largely driven by the SWOOT stocks. The direction of the market on daily basis is determine by their temperatures. When they get cold, the market return cold and vice versa, save for the day they will just be tepid.
The actions we have been witnessing in this week is primarily profit taking, we saw prices of stocks and the ASI returning positive last week and for the fear of ‘we are in an election year’ most investor move to book any available profit.
The market close of yesterday is pointer that the market will return upbeat at the end of the week.
What is driving the price of MRS, Vitafoam, Airtel and Nestle?
Vitafoam, Airtel Africa and Nestle are just returning back to their status quo ante prices. Remember that Nestle declined to N968.90 and lost a whole 10% while Airtel Africa declined too and lost the maximum 10% penultimate week.
Vitafoam declaration of a lack lustre dividend was punished by the market and it declined to about N20.85.
So, the actions you see in these stocks are just a reversal of their decline.
Why is Geregu Power trending down?
Geregu was listed at N100.00 and the market has still not absorbed the pricing and we have seen a lot of actions in the stock’s price determination on daily basis.
Recently it continued to gain and like I said before , investors are taking every advantage to book in their profit and that is what is happening in Geregu.
How attractive is Fidelity Bank at N4.98?
Fidelity has set a new 52-week high price at N5.00. It therefore means that the price can go further than that when their Q4 earnings is released to the market.
This is a stock that has always have an earnings yield in excess of 20%. At N4.98, the stock still have some traction especially if the declared dividend surpasses the market’s expectation.
What are the possibilities in Flour mills, WAPCO, UBA and GTCO?
GTCO’s N2.70 dividend is almost sure and that will not leave the price at what it is trading now. Wapco happens to be the cheapest stock in the cement industry, the only thing that may hinder its upward trajectory would be their dividend declaration. If it meets or surpasses the market’s expectation, it would rally.
UBA has been hindered by its dividend declaration over time, investor are rating it along side its spin-off companies, UCAP and Afriprud. It should be understood that these three companies are in different sectors and in different businesses. At the current price UBA is good to go.
What are the stocks to watch?
GTCO, Julius Berger, NB, Okomuoil, MTN, Seplat and FBNH