Ruth Ibikunle
The Nigerian Stock Market on Wednesday closed on a positive note with 0.31% growth. The All Share Index and Market Capitalization stands at 52,580.86 points and N28.631 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:
Transcorp shed 5.23% on Wednesday to close at N2.90 from N3.06. How low can it get to? Is it a good buy at the current price?
The up and down in Transcorp is part of market activities and we expect this to continue until it reaches a stable price. At N2.90, Transcorp is a good buy with an EPS of 43k, it can still go higher to N4.00 or more. Recall Femi Otedola offered a price of N250bn for 40.6bn ordinary shares which mean N6.00 per shares.
What is driving the growth in Nigerian Breweries? Is it a good buy at N38.7?
The Q1 result of NB was very poor, this brought the price to as low as N33 because of lack of cash in Q1 2023, now that the problem of lack of cash is over it will rebounce. The highest price for Nigerian Breweries in 2022 was N60.00 so the price is ok.
How attractive is Vitafoam at N20.15?
Vitaform is growing, last year high for the stock was N24.00 and the year end is September. The price is good to go.
What are the possibilities in GTCO and Zenith bank?
GTCO and ZENITH are liquid stocks with strong EPS and Dividend, their prices has the potential to go up.
According to the National Bureau of Statistics, inflation rate grew to 22.22% in the month of April. How will this impact capital market participation?
The high the inflation, the more likely it is for the stocks to go up as a means of hedging against inflation. It should be noted that most of the Fixed Income and Money Market are trading at the negative below inflation, the best alternative is to go the Capital Market, particularly Equities.
Transcorp, Geregu, BUA Foods, PZ and NAHCO gained more than 50% this year.
What are the stocks watch?
The stocks to watch are are Flourmill, PZ, Mansard, NAHCO, Transcorp, Access. UBA, GTCO and ZENITH BANK.