Ruth Ibikunle
Trading activities on the Nigerian Exchange on Monday closed on a positive note with 0.22% growth. Year to date, the market has returned 2.59% with the All Share Index and Market Capitalisation at 52,579.52 points and N28.630 trillion respectively.
Ina stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The market on Monday grew by 0.22%. Should we expect a bullish week?
As far as the SWOOT stocks are either constant or hitch up, we should be expecting a bullish week. It could be noticed that in spite of the dismal Q1 2023 expectation of the market, the Q1 earnings releases so far have surpassed what the market was expecting.
This is also May, just a month to the end of the second half of the year and the political climate too will be much clearer after the election petition tribunal sitting and the swearing-in of the president-elect.
The price of a stock today is the future expectation of the information surrounding such stock.
The Exchange has been notified of the proposed acquisition of the entire share capital in Union Bank by Titan Trust Bank Limited at N7. The stock is currently trading at N7.10. How fair is this development to existing shareholders?
I think this is just a formality as the market had been aware of this piece of information and has been reflected in the price of the stock.
At a takeover stage of the entire shares of a company, there are metrics and valuation methods that are deployed to get the fair and accurate price of the entity.
I believe that has been put into the valuation of Union Bank’s worth and that would be deemed fair.
Remember that this is done under the purview of the regulators, both SEC and the NGX, and if it is permissible, it therefore means that is fair
Access Holdings has touched a new 52 weeks high of N11.65 but eventually closed at N11.55. How attractive is ACCESS at the current price?
If you could recall, Abayomi Obabolujo and I were trying to draw the attention of the investors to the new trajectory of Accesscorp. The fascinating intrigue was the way and manner their Turnover was growing but as that time they still have the cost of acquisition in their books.
And we predicted that moment that was expunged from their income statement, the bottom line would soar and they would be able to give commensurate dividends.
Voila! That came to pass in their Q4 2022 and Access is the beautiful bride with a N1.30 chain on her neck and every suitor wants to court her.
I am of the opinion that even at the current price of N11.55, the stock is still a good bargain, not only for this dividend declared but for the long haul as the company will continue to surprise the market and beat the market’s expectation
What are the possibilities in Nigerian Breweries, Honeywell, GTCO, Zenith, UBA, FBNH and Presco?
During the scarcity of naira notes, transfers were not readily accepted because of the attendance issues of the network, auto reversal, etc. Most people who consume alcohol had no access to cash and the sellers were not accepting transfers. The sellers that accept transfers were the high-end pubs where they sell foreign drinks.
The issue had a big bang in the turnover and PAT of Nigerian Breweries. They came out with a dismal Q1 2023 performance and the market reacted to that.
But as far as I know, Nigerian Breweries would recover from that and would bounce back. So, the lower investor can get now, the better for it.
Zenith and GTCO have recovered from their marked-down prices, and the only direction those prices would go is up.
What are the stocks to watch?
Access, Transcorp, Nigerian Breweries and Presco