Ruth Ibikunle
The Nigerian stock market last week was down by 0.05% with the All Share Index and Market Capitalisation at 52,187.93 points and N28.417 trillion.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The market last week was marginally down by 0.05%. What is the outlook for the new week?
The outlook of the market this week to me looks bright.
This is the week that precedes the presidential inauguration date, which is May 19. Feelers reaching the market is that the preparations for the ceremony are in top gear and there is no unforeseen circumstance that might circumvent it. The expectation of a new government is a trigger to the market.
Secondly, the opening ceremony of the Dangote Refinery is scheduled for this week. The coming on stream of the refinery is cheering news not only to the market but to the economy at large.
I expect investors to take positions this week ahead of the inauguration and the commissioning of the refinery which will drive the market northwards.
What is driving the price growth in FTN Cocoa and PZ? Is FTN Cocoa a good buy at 44 kobo?
FTN Cocoa has been a good stock to speculate on and speculators in the market have always made a kill on it. The movement in the price is just the market momentum which is not based on any fundamentals. Before you can say “Jack Robinson” now, investors will begin to take profit and the price will be beaten down by that action.
PZ movement too can be adduced to the market momentum because in the last two or three years, the company has been making huge profits out of extraordinary items like the disposal of associates and when that revenue is expunged from its book for the year, the resultant effect will be a loss position.
Why is Ardova trending down?
Ardova is billed to delist from the exchange at N17.38 per share and there’s every possibility that the market reacted to the price of Ardova because of a piece of contrary news. Because if the delisting price is true as stated above, it is surprising when the market decided to move its price higher than that.
The realisation that the price investor would get at the end of the day is N17.38 is a wake call to those who can get it to sell at a price higher than that and therefore investors are into profit-taking.
Seplat declared an interim dividend of 3 cents to shareholders in Q1 2023. How attractive is Seplat at the current price?
The attraction in Seplat has not been the absolute or the yield in its dividend declared. The industry the company operates and the quality of the earnings it has been releasing to the market coupled with the fact that the company pays regular dividends both interim and final make it attractive for value investors.
It is attractive to take any dividend on board in the market when the market is devoid of dividends.
What are the possibilities in GTCO and Zenith Bank?
GTCO and Zenith are stocks in a class of their own. They are both highly liquid, if you want to take a position, they are available and if you want to sell, you see them to sell.
That the market has factored into their prices and the prices were reversed at marked down to where they are currently trading.
They are stocks that you make mistake with if you must make mistake in your investment.
A portfolio without these two stocks has not been constituted yet.
What are the stocks to watch?
Flourmill, Honeywell Flour, Presco, Guinness, Nigerian Breweries and Access.