Stock Market Review: March 29, 2023

Ruth Ibikunle

The Nigerian stock market on Tuesday closed on a bearish note as the All Share Index and Market Capitalisation closed at 53,124.63 points and N28.940 trillion respectively.

In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following was discussed:


The market on Tuesday continued its southward journey, shedding 1.16%, Should we expect a bounce back anytime soon?

The market as we continue to say is a discounter, it moves at every point and moment in time to reflect the information and the mood in the market arena.
Investors expected a situation where the opposition/s pick up their phones and concede victory and congratulate whoever won the elections.

Conversely, we have cases, accusations, and litigations all over the place.

Inflation is still trending up, occasioned by the scarcity of Naira notes and the MPC went ahead and tinker in the northward direction of the MPR by 50 basis points.

These and many more will make the debt and the money market more attractive than the capital market.

We may still continue to witness this decline throughout this month.

• Cadbury proposed a final dividend of 40 kobo for the 2022 year-end, down by 20% from the dividend payout of 50 kobo declared the previous year. How will this impact the price of Cadbury?

The market and its participants are averse to any decline, whether in the performance or dividend declared.

It is a sign of weakness. Therefore, the market will not welcome the dividend and would be lukewarm towards the price of Cadbury, Chance is, that it will react negatively to it as investors will shed their holdings to take a position in other stocks whose dividend yields are in excess of 10%

I am sure that investors in Cadbury will exit their positions for this stock.

There is every tendency that the price will react to this dividend declaration, at least for a day. But we have investors who have taken positions since and are waiting to exit at the maximum price.

Zenith Bank declared a final dividend of N2.90 for the 2022 year-end. How attractive is the stock at N25?

At N25.00 the dividend yield of Zenith stands at 11.6%. The Bank has never disappointed the market and investors alike when it comes to dividend declaration.

Why is Dangote Cement trending down? How attractive is the stock at N276?

Remember it was the news of the share buyback program that helped to move Dangote’s price upwards.
Since there is not so much to expect, the weight of the current Information in the marketplace is taking a toll on its price.
It is just a momentary thing that will fade as the conditions improve. At the price of N276.00, the stock is attractive.

What is driving the price of PZ? Is it a good buy at N11.40?

To me, any upward movement in the price of PZ is just the market momentum and bargain hunting. Their performances over the last two or three years have been buoyed by the disposal of associates or assets which is not a good development for the company.

• What is triggering the rise in the price of Oando?

The force that has recently been behind the movement of Oando is that the market is trying to link the performance of the stock to the Board’s relationship with the President-elect. The market thinks that the company would be favored in the coming administration and as such, investors are taking early positions.

Geregu did the closing gong on NGX. The price has been trading flat at N323 since last week Friday. What are the possibilities in this stock?

I have written before that what is moving the price of Geregu is beyond the market and its performance. Left for the stock’s performance, the price would have been trading below N200.

The closing gong and fact behind the presentation of the figures could only move the price of a stock if there is a substance in the presentation and the figures so presented.
The market is intelligent and cannot just be bamboozled into believing in anything

What are the stocks to watch?
NB, MTN, Guinness, Presco and Okomuoil.

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