Ruth Ibikunle
The stock market last week closed marginally lower by 0.04%. Year to date, the market has returned 7.11% with the All Share Index and Market Capitalization at 54,892.53 points and N29.903 trillion respectively.
In a stock market review with the MD/CEO of APT Securities and Funds Limited, Mallam Garba Kurfi, the following were discussed:
Excerpts:
The market last week was marginally down by 0.04% due to profit taking. What is the outlook for the new week?
The outlook of the market for the coming week may not be different from the past, especially in view of the likely mark down for the dividend of high capitalised stocks such as Dangote Cement, MTN among others. Those who want sell cum Div may further force market go down.
Unilever has notified the Exchange that it’s exiting the Home Care and Skin Cleansing categories. Will this not affect their earnings?
Definitely Unilever exiting the home care and skin cleansing will affect its earnings especially when there is no better alternative on the table at the time of exiting.
MTN Nigeria is planning to merge its finance subsidiaries: MoMo Payment Service Bank and Yellow Digital Service. How will this benefit the shareholders?
The merger of the two subsidiaries benefit the Holdings company because of synergy by cutting overhead cost and Staff cost due to merger.
Why is Stanbic IBTC trending down? Is it a good buy at N37.6?
Stanbic is trading down because the dividend of N2 declared is not good compared with other Banking Sector like GTCO, ZENITH Bank that’s currently trading below that price despite higher dividend declared by Stanbic. I will advise investors to wait, it may go further down after the mark down.
May & Baker has declared 30 kobo dividend to its shareholders, same as the previous year. Is this capable of pushing the price forward? Is May & Baker a good buy at N4.6?
The moment May and Baker declared the 30k dividend, its price started coming down because the dividend declared falls below the market expectation, it’s likely the price will come down further.
In comparison with Fidson which is trading two times the price of May and Baker but paid 55K but in term of earnings and growth, this may not be good enough to push the prices up.
Recommendation
I will rather watch as most indicators shows that the market may look further down.