Ruth Ibikunle
The stock market on Wednesday closed on a positive note with 0.93% growth, bringing the All Share Index and Market Capitalisation to 67,378.88 points and N36.877 trillion respectively. Year to date, the market has returned 31.47%.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
The market on Wednesday bounced back with a growth of 0.93%. How sustainable is this growth?
The news of the CBN giving directives to the Deposit Money Banks not to deploy their gains in Forex revaluation, and the downgrade of the Nigerian Equities in the FTSE/JSE All Africa Index Series led to the sales pressure and profit-taking witnessed in the market on Friday, September 8 through Tuesday, September 12, 2023.
However, industry watchers and informed analysts know that what happened was an initial reaction by the market.
But the declaration of N0.50 interim dividend spurred the market to a recovery yesterday.
The market is wondering, whether is it, not the CBN that came up with the circular that approved that dividend declaration also analysts are looking at these unprecedented interim declarations as signals that the final dividend declaration will blow the minds of the investors.
All the major stocks that lost above 5% on Tuesday and those that were on offer, came back powerfully yesterday. The resultant effect is what we are discussing.
Barring unforeseen bad news and unpleasant stimuli, whether exogenous or endogenous, the market direction would be forward-looking and might move to break the recently set all-time high of 68,000 points
What is driving the growth in Dangote Sugar, NASCON, UCAP, NAHCO, Transcorp and Oando?
As far as the business combination of Dangote Sugar, Nascon, and Dangote Rice has not been consummated, the stocks would continue to attract the market’s attention.
The share exchange of Dangote Sugar for Dangote Rice has given the market a sleek peak into what the eventual listing price of the new entity may be.
The market is also taking a cue from what happened to CCNN when it combined business with Kalaibaima to form BUA Cement.
The force that has been moving the price of Nahco is also still in force.
From the information that filtered into the market concerning their proposed private placement and their right issue at a price higher than what it was trading when the news filtered into the market.
Is Oando a good buy at N10.15?
Oando is like a cat with nine lives, but it always submerges itself in controversies.
The news that it has acquired a 100% stake in Eni Agip and the counter news from NNPC that the acquisition would constitute contractual/legal implications makes me keep a distance from the stock.
I cannot recommend the stock for any action but I am afraid that if this might not just be another reoccurrence of what happened to investors when Oando announced that it had acquired the assets of Conoco Philips.
Some are still nursing their wounds from acting on such information
How attractive are the following: UBA, Zenith, GTCO, Access and FBNH?
Except for FBNH, UBA, Zenith, and GTCO declared N0.50 dividends that wow the market. There is no investor or analyst who saw that coming.
It is said in my village that the moment you begin to see Eko leaves, you know the market is nearby. These declarations are a pointer of better days for the banking industry and the expectation of mouth-watering final dividends.
What are the stocks to watch?
Nascon, Dangote Sugar, UBA, Access and NAHCO