Ruth Ibikunle
The stock market last week closed on a bearish note with a decline of 0.42%. Year to date, the market has returned 30.56% with the All Share Index and Market Capitalization of 66,915.41 points and N36.764 trillion respectively.
In a stock market review with Mallam Garba Kurfi, MD/CEO of APT Securities Limited, the following were discussed:
• The market last week closed lower by 0.42%. What is the outlook for the new week?
The outlook for the market is positive, in view of the expectations of Q3 results which will be released any moment from now by many companies, which will push the price up.
Also end of the month activities by most of the Fund managers who are very concerned with the end of the month prices of Stock portfolio which are likely to close up.
• UCAP, Unilever and Geregu Power released their Q3 2023 results last week with growth in their topline and bottom line figures. What are the possibilities for this stocks?
UCAP result that was released met with Investors’ expectation, the price will be sustained and most likely to go up. The same with Unilever and Geregu, while Cadbury may likely go down.
• Why is Cadbury trending down?
The downtrend in Cadbury may have to do with the devaluation of naira which continue to go down and could not pass the cost to consumers through its product.
• How attractive is Flour Mills, Okomu and Nigerian Breweries at the current price?
Flourmill having marked down for N2.25 dividend is good for long term investors. Okomu Oil is good but the permission of 43 items allowed by CBN to source FX through Banks may bring a lot of imported good that may compete with their products which make future performance in doubt. Nigerian Breweries at current price is good to go.
• Nigeria’s inflation rate has risen to 26.72% according to NBS. How will this impact capital market participation?
Nigerian Inflation closed in September at 26.72% and it’s likely to continue in view of the N35,000 paliative given to each civil Servant by FGN and token gift of #25,000 to 15m people for the next three month starting by October. This will bring additional cash inflow that may likely trigger the price of goods to go up.
As long as there is Inflation, most likely price of stocks to go up because people are looking for where to hedge inflation and capital market provide the platform.
As at today ASI has gained over 30% ahead of inflation and some individual stocks gained as much as 500% for the year such as Transcorp from #1.00 to #6.20 and many other stocks.
• What are the stocks to watch?
The stocks to watch are Dangote Sugar, NASCON, UBA, Access, GTBANK, ZENITH, Chams, Ellah Lakes, UCAP among others