Ruth Ibikunle
The Nigerian stock market last week closed lower by 1.36%, bringing the All Share Index and Market Capitalization to 98,232.76 points and N55.323 trillion respectively.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
• The stock market last week closed on a bearish note, shedding 1.36% week on week. What is the outlook for the new week?
The close of the market in red last week started with a 10% loss by Airtel Africa on Monday and the market could not recover from it.
The attitude in the market currently is that investors are set to take profit the moment they are in the money to the extent of 10% after transaction cost.
Profit taking and the marked down of stocks also lend a hand in the market closing in the red.
The numbers that entered the market through Q12024 released results are sterling enough to take the market above what we are currently witnessing.
You never can tell with the market as it has its mind.
By and large, the market closing in the red zone is not an indication that the market does not recognize those performances but after investors that take profit have done that, the market will find its way up.
• What is driving the growth in Tantalizer?
Early last year, the market noticed that Tantalizers had started rendering its outstanding earnings report to the NGX, and it was also rumoured that they had inquired from the NGX about all their outstanding payments, which I learned they have made good.
Last week I saw the private placement they have secured in The AVID platform. We know that the walls have ears, all of these the market may have interpreted to mean that the company is coming out of the woods and investors want to cherry-pick the stock at the current price before it rises above the N1.00 mark.
If the above is true, at a price of N0.46 which makes the stock one of the cheapest on the exchange, the direction of the stock is worthy to be cast a look at.
• How attractive is Access at the current price of N17.40?
Access Bank has come to prove its mettle among the tier-one banks listed on the NGX. The current forces holding the stock at about N17-18.00 are not far-fetched from the demise of the erstwhile GMD.
But I know that the bank is a going concern and the man was just the arrowhead of their operations, the forces that have always propelled the growth are still much around in the bank.
I don’t know why investors should entertain this fear and allow the price to be dragged down immediately after it was marked down for dividend.
Access bank will find its feet soon after the whole dust has come to settle.
• What are the stocks to watch?
Access Bank. UBA, Zenith, GTCO, Japaulgold, Tantalizers and a host of others