Stock Market Review: March 13, 2023

Ruth Ibikunle

The stock market last week closed on a positive note with 0.48% growth. The All Share Index and Market Capitalisation stands at 55,794.51 points and N30.395 trillion respectively.

In a stock market review with Mr Gilbert Ayoola, a seasoned capital market expert, the following were discussed:

Excerpts:

The market last week closed on a positive note with 0.48% growth. What is the outlook for the new week?

The Nigerian Stock Market during last week continued its bullish run as investors awaits beginning of payments of dividend ahead closure dates of quoted companies and likewise reposition in some of the cheap profitable stocks through their earnings, thereby leading to many stocks appreciating in term of their value due to active participation of investors at the market.

Though the market experienced a slow down in activities to reset despite closing trading on a positive note with a growth of 0.48% on the exchange which continues to fuel investors buying interest and renewed position into profitable stocks on strong earnings based on their sound fundamentals.

So, looking into this week, the market will keep moving on the strength and forces of demand and supply as companies continue to release their end of year financial results, therefore pushing the market to respond positively.

What is driving the price of Julius Berger?

The current price movement witnessed in Julius Berger is due to market activities by discerning investors in line with the stock 52-week low of N23.30.

There seem to be renewed buy interest in Guinness and Okomu. What could be driving this?

The activity in Guinness is due to the improved earning performance in its unaudited Q2 2023 results. Earnings grew by N11.85bn from N10.91bn and also recorded a marginal increase in its cost of sales from N72.61bn to N76.16bn with a decline in PBT and PAT in view of the reports.

Added to this is the fact that it looks cheap and attractive on its 52-week low of N63 when compared with the 50-day moving average at the price of N68.11.

For Okumo is due to recent corporate announcement of the board management meeting based on the approval of the audited financial report ahead of investors’ possible forecast for the final dividend declaration to shareholders.

MRS and Conoil emerged top among losers last week. Why are these stocks trending down?

The price trending down in MRS is due to the effect of profit taking after a long run of capital appreciation and price movement.

Likewise, the same goes for the price in Conoil stock, as investors participate actively in trading activities due to the new price high.

What are the possibilities in FBNH, UBA, Zenith Bank, Access, and GTCO?

For stocks like FBNH, UBA, Zenith, Access, and GTCO, they are good for buying, considerating their current prices, and having the ability to turn out good earnings.

Apart from this, these stocks have track record of paying good dividends through their consistency returns to shareholders.

• What are the stocks to watch?

Stocks to watch for this week are Dangote Cement, MTN, FCMB, Honeywell, Fidelity Bank, Royalex, Transcorp, NAHCO, and many others.