Ruth Ibikunle
The stock market closed the month of February on a positive note with 4.82% growth. Year to date, the market has returned 8.89% with the All Share Index and Market Capitalisation at 55,806.26 points and N30.401 trillion respectively.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The month of February closed on a positive note with 4.82% growth, month on month. What is the outlook for the month of March?
The month of February is the gate way to the month of March when the 90 days moratorium granted issuers to file their audited earnings would lapse.
Quoted companies have also been given the leverage to elect to file their unaudited earnings report by 60 days after the close of their financial year or 90 to file the audited.
We have seen the release of some audited and unadited earnings and the declarations of dividend.
These and the peaceful elections and the expectation of the declaration of the winner, signaling that the transition to a new government would be peaceful and saw to the rise of the market in the month of February.
Lafarge Africa (WAPCO) declared N2 dividend to shareholders. How far can the price get to? Is it a good buy at N27.4?
Lafarge Africa is the cheapest of the stock within the cement sub sector of the Exchange. With the declaration of N2.00 dividend for the 2022FYE against N1.00 for 2021FYE shows an improvement in their dividend pay out.
Definitely, the market responded positively to the information, remember the price of Wapco has as its 52-weeks high of N33.70.
The stock has the potentials of scaling up to that level.
Seplat declared 2.5 cent as final dividend. This is equivalent to N11.52 using CBN official rate. Is this fair enough? Will it push the price of Seplat further?
Seplat dividend declarations have been in line with what they declared for 2022FYE. With a closing price of N1,325.00 as at February 28, 2023, the dividend yield is 0.86% which is far less a force that can move a stock within that magnitude of price to begin to rise.
If for anything, the market may begin to see a gradual decline in the price of the stock, but that may linger because 100,000 units that makes a board lot is not easy to come by of Seplat shares.
Nestle reported growth in top-line and bottom line figures for 2022 year end and also declared a final dividend of N36.50. Is it advisable to take position in Nestle for N36.50 dividend?
The shareholders that have benefited tremendously from Nestle are those who took position at a price within the neighbourhood of N600.00.
We should also remember that this company had declared and paid an interim dividend of N25.00 which totaled N61.50
The stock is good for those who are risk averse as the stock’s price could be sticky around a particular price upward of 180 days and for those who desire dividend as return on their investments
At a price of N1,080.00, if the price moved up by 10%, there is every possibility of stagnating there for another long time.
Stanbic IBTC has been trending up in past few days. What is driving the price?
In 2021FYE, Stanbic declared and paid a final dividend of N2.00 and declared and paid an interim dividend of N1.50 2022H1.
This stock belongs to the class of Zenith and GTCO that has almost a cast-in-iron final dividend payout. The market is expecting nothing less than the N2.00 paid last year and that expectation has created position taking which is helping to trend the stock’s price upward.
Why is Flour Mills trending down?
Sometimes in the market, we have extraneous forces and momentum that might sweep a price up, probably a big investor.
But if the market consider that that movement in price is not in relation to its fundamentals, it tends to reprice such stock and brings it back to the its true intrinsic value.
It was the force that moved Flour-Mill up on February 27 that still moved it down on February 28.
It is now left for the market to actually consider which direction befits the stock, if it is up, definitely the market will return it up.
What are the stocks to watch?
This is injury time like it’s said in the football game, the stock I could be talking about here are those that would yield a greater dividend yield as this is the dividend declaration season.Stocks like Zenith, GTCO, Stanbic IBTC, Presco and Wapco