Stock Market Review: October 28, 2024

Ruth Ibikunle

The Nigerian stock market last week closed on a bullish note with 1.41% growth. Year to date, the market has returned 33% with the All Share Index and Market Capitalisation at 99,448.91 points and N60.261 trillion respectively.

In a stock market review with the MD/CEO of Globalview Capital Limited, Aruna Kebira, the following were discussed:

Excerpts:

  • The market closed on a positive note last week with 1.41% growth. What is the outlook for the new week?

In defiance of the prevailing economic variables and policy mismatch, the market is set to close the month in the green zone.

This is premised on the fact that this is the month that ends the moratorium granted to the issuers by the NGX to file their Q3 earnings every year. Therefore, the market may experience an avalanche and cascading of earnings reports from all and sundry this week, save for those who have notified the NGX of one reason or the other to delay their results.

There has been an upward trajectory in the released results for the year so far, so it is expedient that the Q3 2024 will toe the same pattern and if that is true, the market will witness renewed buying activities that will trend up the market closing for the month and for the week.

  • What is driving the growth in UBA, Unilever, FBNH, and Access?

UBA declared an interim dividend of N2.00. Very, very unprecedented in the market. It therefore means that there is every possibility that the final dividend would exceed what they declared as the interim. If that comes to pass, it would be established that UBA declare the highest dividend for the year 2024.

The bank is planning to approach the market for a capital raise to meet the minimum capitalization of the CBN.

Chance is, the market is pricing the stock to meet with the proposed offer price.

Access did a right issue at N19.75 and the market price of the stock was held at between N18-N19.00 through the exercise.

Access has embarked on an acquisition spree which will impact its financials as time goes by. Discerning investors are beginning to take a position in that stock in anticipation of that fact and we shall see more outbursts in the price of Access going forward.

FBNH has been facing a lot of challenges from one court order to another to another to the extent that the AGM was postponed indefinitely. Such news kills investors’ trust in the stock

But the news that another AGM has been scheduled was cheering enough to make those who have earlier left the stock in frustration to begin to come back and that frenzy is enough to drive the price of a stock up.

  • Why is Dangote Sugar trending down?

Like a photographer and their clients, investors who have taken a position in the stock in anticipation of the business combination between the Dangote companies are tired of holding their poses.

Many are taking positions in other currently promising stocks and selling their positions in the Dangsugar to cover such positions.

Once an investor has taken a position in another stock, he/she has to sell to cover that position, in the case of those that sell to buy, not minding how much he/she is exiting.

Oando is currently on trading suspension; what is the fate of those who already took position in the stock?

Oando is a stock that has flouted so many rules of the NGX. They are so used to shifting goalposts year in and year out.

The stock is currently suspended from trading because it failed the earnings release rendition, which is one of the post-listing requirements by the NGX.

As of the end of Q32024, Oando is yet to release its 2023AFS, Q12024, and Q22024.

One would wonder what investors are doing playing the stock. The volatility in the stock is quite enormous to the extent that those who have the liver to play in it have been rewarded handsomely.

Well, since the dust surrounding its delisting from the bourse at N7.70 has long fizzled out, let’s wait and see what the company would do before the end of the year.

  • How attractive is GTCO at N52?

GTCO is on an upward movement in price. One would almost believe that it may have no latitude to move further up, remember it is not the highest-priced banking stock as of now.

There is no rule or law that says that the bank can not be the highest-priced stock by overtaking Stanbic, which hitherto was the norm.

The only issue I have with the stock when compared to Zenith is that Zenith always returns better dividend yield than GTCO but GTCO enjoys more market sentiment and good capital appreciation

  • What are the stocks to watch?

Transcorp, Aradel, Access, Fidson, Fidelity, and a host of others

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