Stock Market Review: April 20, 2022

The Nigerian stock market on Wednesday grew by 0.08% with the All Share Index and Market Capitalisation at 51,178.41 points and N27.871 trillion respectively.

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 closed on a positive note with 0.08% growth. Can we say the Bulls are back again?

I will not say exactly that the bulls are back but the market is trying to look up. But the trading and outcome of today will confirm the presence or absence of the bulls or not in the market.

•          Transcorp has been trending up for the past few days. Is it a good buy at N2.23?

There was an off-market trade of Transcorp of about 700m units on Tuesday at N1.85 and another over a billion units on Wednesday at N1.85.

These are signs that Transcorp has come to stay for good and there is also the tendency of the price to climb up to N5.00 or even meet up with the public offer price of N7.50.

But investors have to be careful as it will be difficult to draw the line of reflex for the rally currently in the stock

•          What are the possibilities in Nigerian Breweries, WAPCO, FBNH and Wema Bank?

NB is going through. At a price of N33.30, it can only get better. I believe that at that price, NB is relatively cheap and it is good to go.

Wapco, I continue to say is the cheapest Cement stock on the floor, and as such, if they continue to get their business model right, it is just a matter of time, before the price will catch up with the rest of the companies in that subsector

Wema has just declared a dividend of 30k for a stock price of N3.70, which translates to a yield of 8%. At that, Wema Bank’s dividend yield is ranking as one of the preferred in the market as we speak.

•          Nigeria’s inflation rate has risen to 22.04%. How will this impact the capital market?

The likely impact of the continued increase in the inflation reading in the country is that the purchasing power of investors will continue to diminish. The investor will be faced with substitution on a continuous basis, investors would like to take care of the bare necessities before thinking about investment.

It will definitely lead to an illiquidity position in the market and such a situation makes the market to be quiet and in a state of lull and that will keep the bulls away for a long time

•          What are the stocks to watch?

Access, Wema Bank, Nigerian Breweries, Presco and Transcorp

Source: Stock Market Review: April 20, 2022 – StocksWatch (stocksng.com)

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