Stock Market Review: June 2, 2023

Ruth Ibikunle

The Nigerian stock market on Thursday closed on a positive note with 0.07% growth, bringing the All Share Index and Market Capitalisation to 55,808.25 points and N30.388 trillion respectively.

In a stock market review with Mallam Garba Kurfi, MD/CEO of APT Securities and Funds Limited, the following were discussed:

Excerpts:

The stock market for the past 3 days has been on the uptrend. How sustainable is this positive vibration amidst removal of fuel subsidy?

Generally, June is always the month that ends with negative returns because most of the stocks have declated their corporate action and price has been marked down.  The current momentum is as a result of the President speech, his immediate implementation will keep the momentum but if, otherwise it may go down.

The removal of Oil Subsidy is not an easy task, the ability to handle the issues successfully will reflect in the Capital Market, especially if the funds meant for subsidy is invested in providing infrastructure for development.

There is this rumor that CBN has devalued naira to N631/$1 from the official rate of N461.6. How will this affect the capital market?

Devaluation of naira by CBN into single Exchange rate is a welcome development which will bring more Foreign Investors into capital market who already left the market from 55% to less than 15%. Single exchange rate will give free enteries and free exit which is the cardinal principle of the capital market.

Nigerian Breweries has announced a proposed acquisition of 80% shareholding in Distell Wines and Spirits Nigeria Limited. How will this impact the company’s earnings?

The NB acquisition looks like an internal arrangement, mere change of name but with little or nor additional value to us in Nigeria.

What is driving the growth in Conoil, Sterling Bank and Eterna Plc?

The removal of Oil Subsidy is likely what trigger the rise in the price of Oil marketing companies as reflected in Conoil, MRS, ETERNAL amongst others.

Sterling Bank and FBNH prices rose due to speculation in anticipation of year end result for December 2022.

Why is FTN Cocoa and Champion Breweries trending down?

FTN Cocoa and Champions Breweries prices are falling down due to profit taking.

How attractive is Presco at N160.8?

Presco is yet to declared their result for 2022, this has raised the issue of speculation of what they may likely declared in view of the fact of what Okomu Oil declared for the same period. Therefore, I will advise to trade with caution because the management isn’t same with OKOMUOIL who are very generous.

What are the stocks to watch?

The stocks to watch are: Flourmill, Sterling Bank, Access, ETERNA, TRANSCORP among others.

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