Ruth Ibikunle
The Nigerian stock market on Tuesday closed on a bullish note with 3.99% growth, bringing the All Share Index and Market Capitalisation to 58,163.59 points and N31.67 trillion respectively. Year to date, the market has returned 13.49%.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
The market on Tuesday grew significantly by 3.99%. What is driving this new rally?
The government of Asiwaju has been able to demonstrate to the investors both foreign and local that it is no longer business as usual.
The epoch of his preparedness started with the suspension and eventual arrest of the former CBN Governor and the subsequent events coupled with the fact that the election of key principal officers into the national assembly was to take place yesterday.
There are no Chinese walls anywhere, as far as it is a human being that is in possession of an information, that information will find a way of going around. Subsequently the news of who and who will make the cabinet minsters of the present government is in the knowledge of some people as a non-public information and they are using it to their advantage.
Comparatively, the government of BAT is seen to be well prepared and has been considered by the market that he has hit the ground running and he is still running.
If you want to know how tall you are, go in the midst of short people and if you want to know that you are slim, go in the midst of fat people. The market is weighing the first 15 days of the present government against the first 15 days of the past government and the difference is a clear as seven-up
Most banking stocks emerged on the gainers list with significant growth. What is steering the water in the banking stocks.
It is a common knowledge that the banking stocks are more liquid than any other sector on the exchange and when any news hit the market, whether to go up or down the banking sector takes the lead.
So, what happened yesterday is not a far cry from what has always happened to the banking stocks as a result of information at the market arena.
Zenith and GTCO currently trades at N30.8. How attractive are these stocks at the current price?
Yesterday, Zenith and GTCO set a new 52-week high price for themselves. The further rise in their prices is consequent on the strength of the information moving the market and the strength of the liquidity prevalent at the market space.
Since their movements was stemmed out of the preparedness of the current administration, I am of the opinion that the rally may persist for any few days.
If that is true, the current prices of Zenith and GTCO are still good to go.
Is Access a good buy at N14.30?
If you were following us on Finance and Investment watch on LTV 8, myself and Mr. Abayomi Obabolujo repeatedly directed the focus of the market towards Access bank and the vigour forming in their books.
As they continue in their acquisitions, you can see the direct impact of the synergy but as at then too, there was also associated costs that affected their middle line and we made it clear that the moment the associated costs are expunged from their income statement, there would be an explosion in their bottom line and mouth watery dividend would follow suit.
That was exactly what happened.
But Access at N14.30 is still good to go, most especially if the position is for a long term
How far can the prices of Okomu and Presco get to? Which one is a good buy at the current price?
Okomuoil and Presco unexpectedly joined in the rally of yesterday which signifies that the rally was market wide.
Okomuoil 52-week high price is N216+ while Presco is N183+. If the rally continues, the two stocks will set new 52-week high prices.
The market may just be experiencing what happened in January of 2018.
What are the possibilities in Nigerian Breweries, Flour Mills, Vitafoam and Fidelity Bank?
Nigerian Breweries has been punished by the market, Flourmill Q4 is by the corner, Vitafoam too has also been punished by the market and Fidelity Bank has always shown in its books earnings yield in excess of 10%.
As this rally continues, these stocks are good to go.
What are the stocks to watch?
Fidson, FCMB, Fidelity, Wapco Nigerian Breweries and Guinness