Ruth Ibikunle
The stock market on Thursday closed on a positive note with 0.16% growth bringing the All Share Index and Market Capitalisation to 52,290.75 points and N28.472 trillion.
In a stock market review with Mr Gilbert Ayoola, a capital market expert, the following were discussed:
The market on Thursday bounced back with 0.16% growth. What is driving this?
The Nigerian equity market rebounds with positive gain after about two days losses after Workers’ public holiday as a result of profit taking by investors. As many of the stocks gained due to investor’s renewed sentiment perception and activities which cut across major sectors of the market.
Sequel to efforts of releases of Q1 unaudited result of some quoted companies showing positive improved growth in their top to bottom line performance and earnings, as many investors realigned themselves ahead of possible price movement and appreciation.
Access Bank has received regulatory approval to acquire majority equity stake in Angola based financial institution. How will this impact the earnings of Access Holdings?
Access Bank’s acquisition of a majority equity stake in Angola-based financial institution has the potential to positively impact the earnings of Access Holdings in the long term.
Expanding geographical footprint could further provide Access Bank with access to new markets and business opportunities, increased customer base, which will further boost its earnings. In addition, leverage its existing operations, expertise, and technology to enhance the performance of the institution could lead to an increase in the institution’s revenue streams.
What is driving the price of Ardova and Academy Press?
The price movement in Ardova is due to the slight improvement in the performance recorded in its Q4 audited financial statement with a growth revenue base. Also, with the expectation of a better improvement in its Q1 2023.
Whlle for Academy Press is driven basically based on investor’s buying position and sentiment due to its low cheap price looking at 50-day moving average at N1.30.
Transcorp has trended down to N2.15. What is the best entry price for the stock?
The price of Transcorp is still expected to further trend down. Investors are advised to start a good entering position below N2.00 per share before price finally adjust.
How attractive is Honeywell at N3?
Honeywell looks attractive at the current price of N3, looking at its 52-week high at N3.13 when compared in line 50-day moving average of N2.33 per/s.
Sterling Bank declared 15 kobo dividend to shareholders. How attractive is Sterling Bank at N1.69?
The price look attractive based on the bank’s Q4 audited financial report, with growing performance and increase in interest income by 13.66% and at the same time grow in its PBT and PAT by 29.23% and also 28.46% respectively. When compared with 52-weeks high at N1.70 in line with 50-day moving average of N1.57. It is a good BUY.
Nigerian Breweries is to raise N25bn via Commercial Paper. How would this benefit shareholders?
By raising N25bn via CP, Nigerian Breweries will have more cash on hand to fund its operations, which will improve its overall financial position and increase its liquidity, thereby generating higher earnings, leading to an increase in shareholder’s value. On the overall, it will lead to increased dividend and capital appreciation if the company’s earnings growth is reflected in its stock price, thereby boosting investors’ confidence
What are the stocks to watch?
Stock to watch ahead are Fidelity Bank, Lafarge Wapco, Fidson, ACCESSCORP, and many others.