Ruth Ibikunle
The Nigerian stock market last week closed on a bullish note as it appreciated by 3.71%. Year to date, the market has returned 40.54% with the All Share Index and Market capitalization at 105,085.25 points and N59.416 trillion respectively.
In a stock market review with the MD/CEO of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The stock market last week closed on a bullish note with 3.71% growth. What is the outlook for the new week?
The stock market is not expected to close in the red zone within this time frame. This is the penultimate week of March, give or take, the market will witness an avalanche of reports renditions next week as issuers scramble to beat the deadline of March 31.
Bearing all unforeseen circumstances and economic shocks, the market will also close in the green zone this week, against the backdrop of investors’ realignment of their portfolios and position-taking in stocks that have a high possibility of paying dividends and paying good dividends.
• What is driving the growth in Julius Berger? Is it a good buy at N72.60?
Julius Berger in their unaudited 2023 financials reported an EPS of 795k against 547k in 2022, which is 45% growth. The growth will give them ample opportunity to increase their dividend declaration.
The market as a rewarder of good performance, is rewarding the stock in that regard
• How attractive is MTN at N267.8?
MTN suffered a major setback in their last earnings report and the market as a discounter, moved in to reprice the stock. It is the same market dynamics that believe that at a price less than N190 and close to the IPO price is considered cheap and the same market is moving in favour of its price to reprice the stock from about N182.00 to N267.80.
MTN has strong fundamentals irrespective of the effect of the current headwinds against their performance.
The discerning investor knows that it is a matter of time and these happenings would be shaken off by the company and there would be a forward movement. With current losses or not.
• What is driving the current rally in banking stocks?
The rumours that filtered into the market concerning the rise in the minimum operating capital for the banks are gradually becoming pieces of information.
Banks are now making known their intention to engage in capital market activities to raise capital. It is known that during this period, the prices of the issuers that might likely be involved in the activities would look up, so investors are taking positions ahead of time to cash out in profits.
• How attractive is Access Holdings with the return of Aig-Imoukhuede as Board Chairman
At the demise of Mr. Herbert Wigwe and the repricing of the bank’s stock, I told those who cared to listen that the bank was not structured around an individual. And the death of the man, though a big loss to the bank but cannot put the bank’s financial knees on the ground.
The coming of Aig-Imoukhuede is just another testament that structured institutions have strong provisions for succession plans.
We are going to see better with the presence of Aig-Imoukhuede and the bank will continue to hold its sway and maintain its presence in the banking sector of the economy
• Why is Transcorp trending down?
There is a strong correlation between Transcorp Power and Transcorp Plc, when the former was upward-looking, the latter toed in the same direction. Now that Transcorp Power has slowed down, those who have made an adequate profit in Transcorp Plc from about N12.00 are taking their profits.
Take note that as the price of power is surging, so would the price of Transcorp Plc.
• What are the stocks to watch?
FCMB, Fidelity, AIICO, Transcorp Power, UBA, ACCESS, and a host of others.