The market last week closed was down by 0.96%, occasioned by profit taking in 27 equities.
Year to date, the Nigerian stock market has returned 4.98% with the All Share Index and Market Capitalisation at 53,804.46 points and N29.310 trillion.
In a stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
• The stock market last week declined by 0.96%. What is the outlook for the coming week?
Last week was the penultimate week before the elections. From experience, an average Nigerian investor understands that this period though safe, is not predictable. Most investors are stepping aside from the market, selling down on their portfolios and converting to cash, where possible, where not possible, they hold their money in their various Banks balances.
This they would say is to provide for the raining day. But from the look of things and feelers available everywhere, those raining days may not happen.
Investors, foreign and local are waiting for the exercise to happen. Even the market is also waiting. The fact that the elections held at all will ginger the market and the market will hit the roof as the other contenders begin to concede defeat.
But for this week, the days would be mixed depending on the news at the market place. But if you ask me, the market will be on the high side more than the low side and it would return the week in the green.
• What is driving the price of Guinness and Geregu?
The Geregu ‘s audited report for 2022 shows a 32% and 50% decline in the top-line and bottom-line respectively. A PAT of N10.171b(2022) from N20.552b(2021) and an eps of 407k for 2022 against 822k in 2021.
If you ask me except there are other information that I am not privy to, the result is in no way encouraging as should not be the force behind the rising of the price as such performances always attract the wrath of the market.
But instead, we saw that the stock has attained its 52 weeks high price of N224.00
I strongly believe that it is the force of the market and the market’s momentum that has driven the price of Geregu to the level that it currently is.
• Why is Fidelity Bank trending down? How attractive is it at N4.76?
Taking position in stock is like taking a pose for a photograph. When the photographer is not forth coming, you lose your pose.
The market has moved to compensate Fidelity for its performance and as long as there is nothing behind that declaration of result like dividends, since dividends cannot be declared from an unaudited result. The market and the price of Fidelity have lost their poses.
Those that are deeply in the stock are taking their profits and home made dividends while they await the release of the audited and declaration of dividends.
Coupled with the mood in the polity and the market, the stock is only shedding some weight but be rest assured that it will recover back, so at N4.76 it is good to go.
• Is the current political climate capable of affecting capital market participation?
The market is not in isolation of the political climate of the nation. Investors are being cautious as nobody can fairly predict what would happen during and after the elections.
Definitely the current political situation will cause the market to be cold and lukewarm. But the market will fare better immediately a winner is declared.
• What are the stocks to watch
Fidelity, Nigerian Breweries, Guinness, Flourmill, MTN WAPCO and Presco