Last week, the Nigerian stock market closed on a positive note with a marginal growth of 0.09%. Year to date, the market has returned 30.54%, with the All Share Index and Market Capitalization at 97,606.63 points and N56.088 trillion, respectively.
Stock Market Outlook with Aruna Kebira, MD/CEO of Globalview Capital Limited:
Q: The stock market closed on a positive note with a marginal growth of 0.09%. What is the outlook for the new week?
Aruna Kebira: The stock market is currently influenced by the anticipation of Q3 2024 earnings reports. The recent decline in the interest rate, as indicated by the stop rate for the last Treasury Bills (TB) primary market auction, suggests a decrease in yields. As the earnings reports start to enter the market, we can expect a return to the green zone.
Q: What drives the growth in Mecure, University Press, and LASACO Assurance?
Aruna Kebira: Mecure experienced strategic investment, reflecting investor confidence in the stock. Being in the healthcare sector with daily demand for its equipment and diagnostic services contributes to its growth.
University Press’ performance is driven by its educational materials and publishing operations.
LASACO Assurance saw a suspension by the NGX for delayed Q2 2024 reporting. Upon release, the results showed a remarkable improvement, with a 604% growth in PAT, 551% in PBT, and EPS following the same trend. The market appreciated these efforts, leading to immediate trading resumption. However, without corporate action, the stock might not hit a new 52-week high.
Q: Nigerian Breweries has extended its Rights Issue offer to October 18. How attractive is the stock?
Aruna Kebira: Nigerian Breweries, once highly favored by investors, has faced challenges due to Naira devaluation. The Rights Issue aims to de-lever its balance sheet and secure working capital for new production. If funds are utilized effectively, the company can recover, making it worthwhile for current investors to take up their rights.
Q: Is Oando tired? How attractive is the stock at the current price of N70?
Aruna Kebira: Oando’s stock price responds to issuer information. The release of its 2023 Annual Financial Statements (AFS), Q1 2024, and Q2 2024 reports will significantly impact its trajectory. If interim and final dividends are declared, the stock’s upward journey could just be beginning.
Q: Geregu Power has published its Q3 2024 results. Significant growth is recorded in the Company’s top-line and bottom-line figures. How attractive is Geregu Power?
Aruna Kebira: With the stock price crossing the N1000 mark, investors expect impressive rewards. At N1,150, the dividend yield will determine investor interest. The stock might remain sticky at this price for some time.
Q: What are the stocks to watch?
Aruna Kebira: UBA, Transcorp, Oando, Fidson, and others are stocks to watch.
