Ruth Ibikunle
The Nigerian stock market last week closed on a bullish note with 2.54% growth. Year to date, the market has returned 5.64% with the All Share Index and Market Capitalisation at 108,733.4 points and N68.339 trillion respectively.
In a stock market review with the MD/CEO of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The market closed on a positive note last week, with 2.54% growth. What is the outlook for the new week?
The market cannot afford to close low in this Q1 2025 earnings release season.
The week under review was the first week after the expiration of the NGX moratorium to issuers concerning the acceptable time for filing of Q1 earnings.
The after-effects of the results still subsist until now and may continue until the end of the month.
Be that as it may, this week is also expected to look up and close in the green region.
What is driving the growth in MTN and Nestle?
These two stocks are members of stocks hampered by the devaluation of the Naira and the negative consequences.
The realized losses occasioned by the mark-to-market value put their balance sheets in unfavorable positions.
In their Q12025 results, the negative trends are being reversed, and the market is rising to revalue them based on their current performances.
How sustainable is the growth in Multiverse, Academy Press, and Beta Glass?
Beta Glass Q1 2025 has been rated the best result across the board.
Reporting a growth of 69% in its turnover and 638%, 594% in its PBT and PAT, respectively.
The growth in its eps was also massive, with a return of 594%. The market had no choice but to reward the stock by repricing it upwards.
How attractive is VFD at N16?
The stock was marked down for a dividend of N2.50 and a bonus of 5 for 1. The price rallied from the day of markdown to N19.00 and has since been sluggish, waiting for another stimulus to chart a direction for the price of the stock.
It is rumoured that there could be possible capital raising activities in the offing by the company. But how true that is would be revealed in the coming days and months.
Nigerian Breweries has been trending up in the past few weeks. How sustainable is this rally? Is it a good buy at N48.70?
The NB price was hampered by the effect of the facility they obtained from their parent company, Heineken BV, and the subsequent devaluation of the Naira, which saw the national currency fall from about N500/$ to N1,900/$.
According to IFRS, the facility has to be marked to the market and the net effect posted to the books of account of the company. The posting of that difference hit the NB balance adversely, and the subsequent earnings releases witnessed the same trend.
But in Q12025, NB showed a bounce back, growing itself out of the woods. The results showed a growth of 128% from a negative eps of 507k to a positive eps of 143k.
The market and investors believe that what held the price of the stock down has been removed, and the subsequent earnings releases for the year will continue to look better.
What are the stocks to watch?
ETI, VFD, Wema, UBA, NB, Ellah Lakes, and a host of others.