Stock Market Review: July 3, 2023

Transactions on the floor of the Nigerian Exchange last week closed on a bullish note with 2.98% growth, bringing the All Share Index and Market Capitalisation to 60,968.27 points and N33.198 trillion respectively. Year to date, the market has returned 18.96%.

In a stock market review with the MD/CEO of APT Securities and Funds, Mallam Garba Kurfi, the following were discussed:

Excerpts:

The market last week grew by 2.98%. In six months, it has returned 18.96%. What is the outlook for the second half of the year?

From the swearing of President Bola Ahmed Tinubu to the end of June 2023, the All Share Index gained more than 15% and this trend is likely to continue especially with the expectations of coming back of Foreign Portfolio Funds Managers. Most likely, the market will do better.

FTN Cocoa has touched a year high of N2.39. It has grown by 724.14% year to date. How sustainable is this growth?

FTNCOCOA can still move better than the current price in view of the new Investors injecting more funds into the company, coupled with the FGN policy on Agricultural commodities.

MRS, Eterna and Conoil in 6 months grew by 460.28%, 213.90% and 213.21% respectively. How are they likely to perform in the second half of the year?

The removal of petroleum subsidy benefits the stock prices of many oil companies due to stock of oil acquired before the removal of oil subsidy. They sell at higher prices gaining more than 150% per liter. Others oil companies such as MRS and Total also benefitted in increasing their market prices.

What is driving the price of Sterling Holdings? How attractive is the stock at N3.36?

Sterling Holdings priced more than double in just a month. The low prices most of the penny or small Cap stocks made their prices to rise by more than 100%. These was as result of Market upsurge.

What are the possibilities in Zenith, GTCO, Access, FBNH, UBA, Fidelity and Wema Bank as they are already trading around their 52 weeks high?

Generally Banking stocks are rising as indicated by banking index, this is as a result of liquidity of their stocks which dominates more than 70% of the market activities. We expect them to rise more because most of them are trading at low P/E Ratio which means they are trading below their fair value despite trading at 52 week high.

What are the stocks to watch?

The stocks to watch are penny or small cap stocks such as: Chams, Japaul Gold, Insurance Companies among others.

Transactions on the floor of the Nigerian Exchange last week closed on a bullish note with 2.98% growth, bringing the All Share Index and Market Capitalisation to 60,968.27 points and N33.198 trillion respectively. Year to date, the market has returned 18.96%.

In a stock market review with the MD/CEO of APT Securities and Funds, Mallam Garba Kurfi, the following were discussed:

Excerpts:

The market last week grew by 2.98%. In six months, it has returned 18.96%. What is the outlook for the second half of the year?

From the swearing of President Bola Ahmed Tinubu to the end of June 2023, the All Share Index gained more than 15% and this trend is likely to continue especially with the expectations of coming back of Foreign Portfolio Funds Managers. Most likely, the market will do better.

FTN Cocoa has touched a year high of N2.39. It has grown by 724.14% year to date. How sustainable is this growth?

FTNCOCOA can still move better than the current price in view of the new Investors injecting more funds into the company, coupled with the FGN policy on Agricultural commodities.

MRS, Eterna and Conoil in 6 months grew by 460.28%, 213.90% and 213.21% respectively. How are they likely to perform in the second half of the year?

The removal of petroleum subsidy benefits the stock prices of many oil companies due to stock of oil acquired before the removal of oil subsidy. They sell at higher prices gaining more than 150% per liter. Others oil companies such as MRS and Total also benefitted in increasing their market prices.

What is driving the price of Sterling Holdings? How attractive is the stock at N3.36?

Sterling Holdings priced more than double in just a month. The low prices most of the penny or small Cap stocks made their prices to rise by more than 100%. These was as result of Market upsurge.

What are the possibilities in Zenith, GTCO, Access, FBNH, UBA, Fidelity and Wema Bank as they are already trading around their 52 weeks high?

Generally Banking stocks are rising as indicated by banking index, this is as a result of liquidity of their stocks which dominates more than 70% of the market activities. We expect them to rise more because most of them are trading at low P/E Ratio which means they are trading below their fair value despite trading at 52 week high.

What are the stocks to watch?

The stocks to watch are penny or small cap stocks such as: Chams, Japaul Gold, Insurance Companies among others.

Source: Stock Market Review: July 3, 2023 – StocksWatch (stocksng.com)

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