Ruth Ibikunle
The stock market last week closed on a positive note returning 3.4% week to date. Year to date, the market has returned 23% with the All Share Index and Market Capitalisation at 63,040.87 points and N34.326 trillion respectively.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The market last week closed on a bullish note with 3.40% growth. What is the outlook for the new week?
The current outlook of the market is still positive. The constituents of Stocks Worth Over One Trillion (SWOOT) are yet to have their fair share of the current rally and bull run.
And if that happens, the ASI has the capacity of trading close to 70,000 points and if that is true, the growth would be unprecedented.
It is reported that other stakeholders in FBNH are putting up their financial armory together to fight Oba Otudeko’s recent 4.7 billion shares acquisition in the bank and if the fight happens, it may spur another rally in the stock and make a ricocheting effect on some of the banking stocks.
Secondly, most of the hitherto deemed moribund stocks are also set for a rally. The likes of Deap Capital, Omatek, Tantalizers, and NSLTech are currently on the upbeat and they are not looking to get tired so soon.
Thirdly, the sentiment and the information available at the market arena are still positive.
• Japaul Gold hit N1.11 last week. How sustainable is this price growth?
Since Oil in the name of the company has been substituted for gold, it has not been the same with the stock.
It has been a darling stock for speculation and currently, the rally prevalent at the marketplace has carried it far from what it used to be to another level.
As far as the sentiments in the market are still positive, the rally in the stock would be sustained.
• What is driving the growth in Consolidated Hallmark Insurance? How attractive is the stock at N1.29?
Other stocks on the floor of the NGX cannot continue to experience and feel the impact of the current rally with CHIPLC being an exception.
The current situation we’re experiencing is that the market is good. In such instances, every stock will be good and perform.
What is happening in CHI PLC is not in isolation.
• Conoil is now trading at N102.3, MRS at N99.5 and Eterna at N28.4. Which of these Oil & Gas stocks is a good BUY?
Nigeria has regained her position as the largest oil producer in Africa as our oil production rose from 999,000 bpd in April to 1.184 million bpd in May
The removal of petroleum subsidies has granted oil and gas companies pricing control and margin benefits. The implementation of the long-awaited reform policies and this deregulation will promote healthy competition and stimulate activity in the sector, improving the earnings growth for the companies as they gain the freedom to set market-based prices without price controls.
Consequently, if the above conditions own true, the rally and the bull in this sector is yet to abate.
These stocks still look good to go if the current sentiments persist at the market arena.
• How attractive is Presco at N220?
Presco is yet to release her Q4 2022, Q1 2023, and Q2 2023 is due. It is often said in my village that if a child tarried long on an errand to fetch firewood, he would come home with a bigger bundle.
Presco is known to declare and pay interim dividends. The coming of the earnings release from Presco may bring the much-awaited surprise. They may just declare for both final and interim dividends.
And if that condition comes true, then the rally in the stock is just about to begin at N220.
• Why is Coronation Insurance trending down?
Coronation Insurance has sent a notice of its intention to delist from the security daily official list SEDOL at a price less than the market price.
To demonstrate the efficiency of the market, the stock is being repriced to reflect the current realities.
The stock traded as high as 93 kobo and the price at which it wanted to delist is set at 65 kobo.
• What are the stocks to watch?
FBNH, Nigerian Breweries, Guinness, Tantalizers, Universal Insurance, and Eterna oil