Ruth Ibikunle
The stock market last week closed on a positive note with 0.27% growth. Year to date, the market has returned 3.03% with the All Share Index and Market Capitalisation at 106,042.57 points and N66.648 trillion respectively.
In a stock market review with the MD/CEO of Globalview Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
• The market last week closed on a positive note with 0.27% growth. What is the outlook for the new week?
Last week marked the end of April and the beginning of May 2025. April is the moratorium month that the NGX gives issuers with which to file their Q1 earnings reports, and we experienced an avalanche of them last week.
The Q1 2025 earnings releases we saw though mixed, but the overall performance was skewed to outstanding performance.
In its role as a rewarder of performance, the market rose to compensate those who met and surpassed market expectations, and in that way, the ASI hitched up.
Over the weekend, analysts would have to sit down with all these results, analyze and rank them for investment purposes. And when investors begin to take positions this week, we will also experience a hitching up of prices that would culminate in an increase in the ASI.
• What is driving the growth in ABC Transport, Legend Internet, Fidson, and University Press?
ABC TRANSPORT
ABC Transport grew its turnover by 57% and its PBT by 1,855%, PAT and eps by 382% and 400% respectively.
The catch in the results is that ABC Transport was able to trade its loss zone for a profit zone. Like the phoenix, it has risen out of the ashes.
LEGEND INTERNET PLC
Legend Internet PLC is a new listing, listed on the main board of the NGX on Thursday, April 24, 2025, at N5.64.
As a new listing, it became the darling of investors and rose to N9.03 on Thursday, May 1, and closed at the same price on Friday, May 2, 2025.
Investors have a way of relating to a new listing, they believe that there is a mispricing that the market will rise to correct in the short term, and most of them will want to participate in those efforts of the market to properly price the stock and perhaps book a profit.
Those who bought the stock at N6.20 and N6.82 have since cashed out.
FIDSON
The company was another great performer in Q12025. It grew its Turnover by 85%, PBT, PAT, and eps by 213%, 213 and 125% respectively.
The market, in the process of rewarding its effort, has moved the price from N18.60 to N22.85.
UNIVERSITY PRESS
UPL moved from N3.10 to N4.11, riding on the back of its performance in its Q12205 earnings release as it has outgrown its loss position from a loss eps of 37k to a profit eps of 93k, representing a growth of 351%.
• How sustainable is the growth in the share price of NAHCO? Is it a good buy at N82.50?
The company grew across its indicators over 100%, growing its turnover by 113%, PBT, PAT, and eps by 154%, 172%, and 170% respectively, the stock is ever looking up.
With a recently declared dividend of N5.94 (2024) from N2.54 (2023), the company has a good track record of dividend declarations and payments.
If the company continued on this trajectory, the N100 mark would not be difficult for it to attain.
•Why is Ecobank trending down?
ETI can boast of good outings in both its Q42024 and its Q12025.
In its Q12025, the bank grew its eps by 38% and can boast of a P/E ratio of 6.15x for a Q1 result and earnings yield of 16.26%.
The sin of the bank was that it did not declare any dividend for the 2024FYE, and that is what the dividend-seeking investors hate in the heat of several dividend declarations and payments.
The resultant effect is that there was a mass exodus that triggered a price decline.
• How attractive is VFD Group at N17.9?
VFD declared a 5 for 1 bonus and a N2.50 dividend in its 2024FYE. The stock price has been marked down for both, and it is waiting for the next stimulus that will galvanize the price up. In its Q12025 scorecard, the company had modest growth across all metrics.
Growing its turnover, PBT, PAT, and eps by 29%, 35%,33%, and 46% respectively, the market believes that the company is planning the process of a possible capital raise.
• What are the stocks to watch?
NB, Legendint, Cadbury, Fidson, UBA, Wapco, TIP, and a host of others