Ruth Ibikunle
The Nigerian stock market last week closed on a bullish note, up by 2.49%. Year to date, the stock market has returned 8.56% with the All Share Index and Market Capitalisation at 111,742.01 points and N70.463 trillion respectively.
In a stock market review with the MD/CEO of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
•The stock market last week closed on a positive note with 2.49% growth. What is the outlook for the new week?
The NGX for 2025 has matured. We now have informed market participants who can decipher and recognize a good company’s outing.
The effect of Q12025 and the benefits from the 2024 FYE are still reverberating across the length and breadth of the market.
Expectations are still high, and there seems to be adequate liquidity in the market arena as the MPC held the MPR constant in their 300th meeting. Analysts are still of the opinion that the possibility of a repeat of that action on the part of the MPC is high against the backdrop of the last inflation reading and a chance that it will further drop in the next reading. Given that the base year is now 2024.
Be that as it may, the enthusiasm in the market is expected to continue unabated as this is June, a period marking the end of the Q22025.
• How sustainable is the growth in the University Press? Is it a good buy at N5.90?
The Notice of the UPL Board of Directors meeting scheduled to be held on June 18, 2025, spurred the rally in the price of the stock. Among the Agenda items to be discussed at the meeting are the recommendations on dividends/bonuses.
The catch in the notice is the mention of a possible bonus. At that, one cannot tell by how much the price of the stock would rally, as no one can tell the basis of the bonus and the quantum of the dividend to be declared.
The stock’s 52-week low price is N2.09, while the 52-week high price is N6.17
• Is NAHCO a good buy at N80.75?
This stock has trended lately, rising from a 52-week low of N31.50 to a 52-week high price of N84.85.
Its Q12025 earnings were quite sterling, and the market, an unbiased umpire, had moved to compensate the stock.
But the latest information from the company regarding the non-declaration of dividends may hinder the further rise of the price, and the majority of investors are dividend savvy, and those who had taken a position before now will want to exit, as there is no benefit to look out for.
Therefore, the price of N80.75 may not be sustained.
• How attractive is Legend Internet at N6.16?
The stock was listed on the NGX on April 24, 2025, at a listing price of N5.64 but never traded at that price as it closed at N6.20 on the day.
Since the day of listing, no further information has emanated from the issuer, so the market is not abreast of what is happening there, and our market is still largely information-driven.
Analysts and investors have no information or figures to predict and determine the next direction of the price of the stock, and therefore, it has been oscillating in the N5 and N6 bands.
Considering the first trading price of N6.20, the stock looks attractive at the current price of N6.16, bearing all unforeseen shocks that could be contained in the information from the company going forward.
• Why is Seplat Energy trending down?
The stock belongs to the SWOOT category on the NGX. Since it takes a hundred thousand units to move any stock up or down, the stock is not for small fries, as it takes a deep pocket to command attention in the price of the stock.
On May 25, 2025, the price of the stock was marked down by N72.90 dividend declared.
Since the stock has been marked down, an investor who has the muscle to determine the direction of the stock decided to exit with a board lot volume of up to a hundred thousand units, and the price of the stock dropped by 10%.
It would take such a feat to either move the stock up or down.
•Standard Alliance Insurance has transformed to Fortis Global Insurance. What are the possibilities for this stock at 20 kobo?
Well, a change of name of a company might not be equal to a change of game. If all things at Standard Alliance continue to be equal, the resultant effect of the change of name will not be felt by the market or the price of the stock.
Except the owners will be intentional about the turnaround of the company and bring to bear new ideas and innovations, and the drive necessary to make the company viable, there would be a repeat in the price of the stock to continue to stay at a car park price of N0.20.
But the coming months and years would prove what is happening at the company and the price of the stock thereof.
• What are the stocks to watch?
Nigerian Breweries, Ecobank, Tantalizer, VFD, UCAP, Afriprud, and a host of others.