Ruth Ibikunle
The Nigerian stock market last week closed on a negative note shedding 0.62%. Year to date the market has returned 5.93% with the All Share Index and Market Capitalisation at 109,028.62 points and N68.752 trillion respectively.
In a stock market review with the MD/CEO of GlobalView Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
• The stock market closed lower by 0.62% last week. What is the outlook for the new week?
The present crop of investors in the NGX is considered well informed and takes informed investment decisions.
Such decisions involve cashing out in stocks where they have met their investment targets. Such profit takings normally herald selling pressures that depress stock prices.
The frenzy to take profits also leads to herd mentality, where every investor would like to exit such stock with the fear of not knowing to what extent the price would be depressed.
Be that as it may, we are going to experience a different market this week, and the market is expected to close in the green zone as the MPC holds the MPR constant.
• What is driving the growth in Cutix Plc? Is it a good buy at N3.17?
The stock is currently trading at its 52-week high price. This is not unconnected with the notice of meeting of the board of directors of the company slated for the 30th day of May 2025.
The company has been known for its generous benefits to its shareholders in dividends and script issues. As a result, investors who want to partake in that largesse from the company are already anticipating the company’s decisions and are taking positions.
Depending on the quality of benefit information from the company, the N3.17 it is currently trading at might just form a new entry point for discerning investors.
• Why is the Fidelity Bank share price trending down?
There was a publication in the Peoples Gazette Titled “EXCLUSIVE: Fidelity faces bankruptcy as Supreme Court orders banking giant to pay N225 billion damages to Nigerian firm”.
This was misread by several investors who think that the bank may not survive after this court-ordered payment is made.
The bank wrote to the exchange and the investing public to clarify the Locus standi of the case.
But then, determined investors have rushed to exit, and the rush has led to a decline in the price of the stock.
But the storm is over, the price of the stock is calm, and I can see the price of the stock bouncing back to its status quo ante.
• How sustainable is the growth in Tantalizer? Is it a good buy at N2.70?
Tantalizers, after the completion of the private placement, has been involved in one acquisition or the other.
The company is seeking to diversify from its major QSR business to other areas that would benefit the shareholders.
First, they diversify into the blue economy by acquiring a fishing trawler and have just diversified into the entertainment industry by acquiring Tade Ogidan and RMD’s Grand Media Projects Limited.
If the promoters and the board of the company continue on this trajectory, the company will forever be delivered from the neglected firm position it was for a long while.
• How attractive is Presco at N950 and Okomu at N600?
The more I know of these two companies, the potential in the sector in which they belong is so large that they cannot collectively meet demand.
The Agricultural sector does not attract competitors like any other sector, because there is a big teething and gestation period that most companies and resource owners may not want to witness.
Therefore, the extent to which the stock prices can go cannot be overemphasized.
Their performances become more sterling from quarter to quarter. No analyst would be able to predict accurately the highest for these stocks.
• What are the stocks to watch?
Ecobank, Nigerian Breweries, Tantalizers, Ellah Lakes, Fidelity Bank, and a host of other