Ruth Ibikunle
The Nigerian stock market last week closed on a positive note with 1.51% growth week on week. Year to date, the market has returned 3.36% with the All Share Index and Market Capitalisation stands at 52,973.88 points and N28.845 trillion respectively.
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 closed on a bullish note with 1.51% growth. What is the outlook for the new week?
The market began to react to the news of the inauguration ceremony coming on May 29, 2023. The market understands that the government of Buhari vacated the Aso Rock on May 26, 2023.
The market and the entire country has high expectations from the incoming government, and the investors after seeing what happened when such events took place in 2015 are taking positions in stocks that they believe will bring handsome returns to their portfolios.
I predict that the week would return bullish especially if the incoming president is able to announce his cabinet members immediately after the swearing ceremony.
What is driving the growth in FTN Cocoa? Is it a good buy at N0.68?
The company has announced that it has gotten a convertible loan of USD6,350,000 (Six Million Three Hundred and Fifty Thousand United States Dollars) from OH Ecosystems LLC (“OH Eco”
The market believes that the funds would to a very large extent take the company out of its current situation and return it to a stage of profitability.
At 68k, the stock still looks good to go as it seems that the market is taking the price to about N1.00.
Since this is futuristic, investors should be careful with the stock as others that have taken position hitherto may begin to take profit.
Transcorp is currently trading at N3.07 are there more possibilities in the stock?
The value of Transcorp has been revealed by the coming of Otedola into its fold. It will take a very long time, if the time will come again, to see the stock trading at the price band it used to trade.
The next action the market is waiting for from Transcorp is the declaration of their Q2 2023 to determine how profitable the company is at present.
That might swing the direction of the price either way as per the quality of earnings presented as at that time.
What are the possibilities in Access, UBA, FBNH and Unilever?
Access is seen by the market as both a value and growth stock. The synergetic effect of their previous acquisition is beginning to tell in their earnings releases.
I think going forward the stock will not declare any dividend short of the final dividend of N1.30 they declared for Q4 2022.
The owners of UBA according to the information reaching the market have continued to amass more of the shares of the company. The move is an affirmation of the confidence they have in the business they are running.
With that, the market will continue to keep an eye on their activities and respond appropriately.
The market is still expecting the Q4 2022 earnings from the big Elephant. Whatever the delay is, I believe that the outcome may meet and surpass the market expectation.
Conoil declared a final dividend of N2.50 to shareholders. How attractive is the stock at N47.95?
Conoil has proven over time to be illiquid. You can only see movement in the price of the stock when there is a corporate action backing it up.
Their last dividend did not excite the market because they declare the same dividend they declare the previous year. They do not always like decline and stagnation.
If the perception of the market about the stock continues in the next trading day, the market might still price it lower.
IMG has been trading at N7.30 for a while now, it closed at N8 on Friday. Is there any information pushing the price?
The movement in IMG can be adduced to the current momentum in the market. The expectation of the market from the incoming government is taking its toll on the prices of stocks and IMG will not be in isolation.
What are the stocks to watch?
Nigerian Breweries, Access, Presco, Flourmill and Airtel Africa