Ruth Ibikunle
The Nigerian stock market last week closed on a positive note with 0.81% growth. Year to the market has returned 31.39% with the All Share Index and Market Capitalisation at 98,247.99 points and N56.457 trillion.
In a stock market review with the MD/CEO of Globalview Capital Limited, Aruna Kebira, the following were discussed:
Excerpts:
• The stock market last week closed on a positive note with 0.81% growth. What is the outlook for the new week?
The outcome of the last TB auction clearly showed that the borrowing appetite of the government is waning and dwindling, probably because the year is rounding off.
The July inflation of 33.40 showed a decline in the number by 0.79% while that of August declined by 1.25%.
The banks in the market to raise funds are also rounding off their activities and we can see an improvement in their released results and dividend declarations.
The MPC committee of the CBN will be meeting today and tomorrow to review the MPR and from the happenings in the market and the rate cut in the US, there is every likelihood that the committee will either hold rates or tinker with it downwards.
Any of these actions by the committee would favor the market.
On the other hand, we have roughly one and a half weeks to end the month of September, signifying meaning that Q32024 earnings report will be expected to start trickling in the market.
Consequently, we might see a repetition of last week’s performance this week.
• What drives the current growth in Fidelity Bank, Fidson, and Vitafoam?
The banking sector interim dividends declaration was accelerated this year with GTCO and Zenith raising the bar of the game by doubling their interim dividends from N0.50 to N1.00 each.
It is on that note that the market is also expecting Fidelity Bank to double its interim dividend this year.
Remember that the bank has joined the group of banks that declare and pay interim dividends by declaring an interim dividend of N0.25 in H12023.
Fidson Pharmaceutical PLC wrote the NGX on September 18, 2024, informing the market of a partnership agreement between it and three Chinese company to manufacture HIV drugs to tackle the scourge in Nigeria and Africa at large.
The stock has done 20% since the announcement and may see more days of a rally as the market believes that the agreement is very strategic and may galvanize Fidson to a whole new level entirely.
The project is to be situated at the Lekki Free Trade Zone.
• Is the party over in Oando? How attractive is the stock at N82.50?
According to those who are closer to the organization and especially those who have taken a position in the stock, the party is far from being over. The party is just on recess and will soon be revisited.
It is believed that there are so many more corporate disclosures from the organization that would keep the fire of the party burning far into the year.
It is also believed by the market that their soon-to-be-declared earnings reports would meet and surpass the market’s expectations.
But the event and happenings in the coming weeks and months would either refute or validate these assertions.
• How attractive is FBNH at N27.50?
The spirit that troubles the waters of FBNH has not departed. It has just stepped back to gather more momentum.
As far as the fight for the soul of the bank lingers and subsists, the sure direction of the price and the height it can go may be difficult to predict.
But those who want to enter into the pool and await the troubling of the water by spirit would always have good tales to tell.
But investors who have to deal should do so with caution. As the departure and return of the spirit can not be accurately timed.
Don’t be caught unguarded and napping while the spirit embarks on a sabbatical.
• What are the stocks to watch?
Fidson, UBA, Fidelity, Wapco, Transpower, and a host of others