Stock Market Review: July 24, 2023

The stock market last week closed on a positive note with 3.89% growth, bringing the All Share Index and Market Capitalisation to 65,003.39 points and N35.395 trillion respectively. Year to date, the market has returned 26.83%.

In a stock market review with Mr Gilbert Ayoola, a seasoned capital market expert, the following were discussed:

•               The market last week closed on a bullish note with 3.89% growth. What is the outlook for the new week?

The equity market has continued to maintain a positive outlook to close the market on high exceptional demand during the last trading week on a strong note in line with market activities performance on the exchange.

Most stocks have continued to experience increased buying demand and interest as a result of their low cheap prices due to investor’s strong confidence and resilience which has kept the market active, thereby causing increased market participation as the NGX All-Share Index closed at 65,003.39 basis points. The positive sentiment was showcased across the board as the sectoral indices all recorded weekly gains.

•               Most banking stocks grew significantly last week. Should we expect profit taking in this sector?

The banking stocks will continue to remain actively traded due to the large volumes and positive sentiments by investors. There might be intermittent profit taking due to price gains, while most stocks in this same sector board management are currently proposing their meetings to approve the release of their half-year 2023 financial results. A few with long history of interim dividends are likely to announce to their shareholders cash reward payments releases for the same period.

Though there might be occasional caution by investors to safeguard and consolidate price gains through profit taking in case there’s sharp drop in large cap companies leading to an eventual drop in the value of their investment.

•             FBNH released an impressive Q2 2023 result with significant growth in top line and bottom line figures. How sustainable is this growth? Is FBNH a good buy at the current price?

The result of FBN Holdings Plc came as a surprise to market watchers, showing an improvement in its top to bottom line performance. Having recorded an EPS of 519 kobo from the same similar period in the previous year 2022 of 156 kobo, which represents an increase of 235% growth.

At the current price, FBNH is a good BUY on the backdrop of this unaudited results with earnings yield of 29% from the previous year account of 9%. I expect the share price to rise ahead of subsequent weeks based on this sterling performance.

•               Dangote Cement concluded the tranche 1 of its share buy-back programme last week, closing at ₦352. How attractive is this stock at the current price?

The price of Dangote Cement will continue to look attractive on recent position of its share buy-back, knowing that company a long-term growth potential with capability to drive its own revenue generation and also having the largest cement production plant with many distribution network to other parts of Africa, with competitive edge among its peers and substantial segment of the market share. While noting that it is also listed on NGX premium board.

•               Why is Guinness trending down? How attractive is it at ₦73?

The trending down in the shares of Guinness lacked further positive momentum to further push the price upward due to delay in the release of its corporate action; while the market at the same time earnestly awaits approval of its audited financial results for the year ending 30th June, 2023 and declaration of dividend.

•               What are the stocks to watch?

Stocks to watch for possible consideration include: Sterling, NAHCO, Zenith, May & Baker, GTCO, UBA and many others.

Source: Stock Market Review: July 24, 2023 – StocksWatch (stocksng.com)

Related Posts

18

Sep
Business & Economy

Stock Market Review: September 18, 2023

The stock market last week closed was down by 1.10% due to profit taking, bringing the All Share Index and Market Capitalisation to 67,395.74 points and N36.886 trillion respectively. Year to date, the market has returned 31.50%. In a stock market review with the MD/CEO of APT Securities and Funds Limited, Mallam Garba Kurfi, the following were discussed: […]

18

Sep
Business & Economy

Nigerian Bourse drops by 1.10% in one week on profit taking, sheds N409bn

The Nigerian stock market declined by 1.01% week on week, as NESTLE, PRESCO and other 51 stocks shed weights. The All Share Index dropped by 1.10% to settle at 67,395.74 points from 68,143.34 points. Consequently, the Market capitalization also dropped by 1.10% to settle at N36.886 trillion from N37.295, thereby shedding N409 billion. An aggregate of 2.93[…]