Stock Market Review: February 14, 2023

The stock market on Monday closed on a positive note with 0.07% growth. Year to date, the market has returned 6.08% with the All Share Index and Market Capitalisation at 54,364.67 points and N29.611 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 closed on a positive note last week with 0.21% growth, It grew marginally by 0.07% on Monday. What is the outlook for the remaining four trading days this week and for the month with the coming election in view?

The market is still in its season. Earnings releases and dividend declaration season. As it stands, it still takes only the capital market, nay the stock market for an inflation indexed return on investment.

As the unaudited results continue to hit the market, they create and give the market a direction, investors could infer and deduce what quantum of dividend an issuer is likely to declare and the rate of growth recorded in these results is also a pointer to expectation of better things.

Consequently, I see the remaining trading days ending in the green.

What is driving the price of Conoil, MRS and Vitafoam?

Conoil in its  unaudited Q4 Financial grew its turnover by 3.7% and was able to manage its middle line and returned a profit after tax by 101% as well as the eps by 101%.

The market has always rewarded good efforts as we know that Conoil has the tradition of almost 100% dividend payout policy and also as an early bird, the market has the feeling that its Audited result is by the corner and a mouth watering dividend is to accompany it.

Vitafoam final dividend of N1.52 was marked down on Monday February 13, 2023, as the market always shows appreciation to a performing stock, it moved to recover the quantum of the marked down during the trading session.

Remember it closed  N21.20 on Friday February 10, which was the qualification date

MRS Oil on the hand grew their eps from 112k to 415k, representing a growth of 270%. The implication is that good dividend declaration is loading and the company is magnanimity in the declaration of dividend and the market is factoring this prospect into the current price.

There is the expectation of a corresponding growth in the dividend to be  declared by MRS Oil

Is Fidelity Bank a good BUY at N5.42?

Fidelity has for a long time be undervalued by the market. It gladdened my heart that after a long history of good performance from the Bank, that it is being adequately rewarded by the market.

The price of the Bank stock has the potential of breaking any 52-week high price it has previously set, so at the current price I am tempted to believe that the price of the stock is still looking for ways to soar, it will likely do just that.

Remember its 52-week high price is N6.03k, at that it is good to go.

What are the possibilities in WAPCO and NAHCO?

Wapco has been the cheapest of the Cement stocks in the market. If you check their financial it suggests that their dark days are over and the market will now continue to reflect their quarterly performance in their price.

It is gradually moving to its 52-week high price of N33.70, so at the current price of N26.10, Wapco looks attractive.

What stocks would you suggest for new investors to consider having in their portfolio?

Nigerian Breweries, Guinness, Presco, Wapco, GTCO, Okomuoil  and Zenith

Source: Stock Market Review: February 14, 2023 – StocksWatch (stocksng.com)

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