The Nigerian stock market last week closed on a bearish note, shedding 1.58% week on week. Year to date, the market has returned 7.15% with the All Share Index and Market Capitalisation at 54,915.39 points and N29.916 trillion respectively.
In a stock market review with the MD/CEO of APT Securities and Funds Limited, Mallam Garba Kurfi, the following were discussed:
The market closed bearish last week, shedding 1.58% week on week. What is the outlook for the new week?
We are not suprised that the market closed down last week. This may be unconnected with profit taking and the issues of banking collapse in USA, this led to heavy loss by Banking Sectors especially GTBANK, ZENITHBANK, Access among others. We are expecting rebounce this week especially if the election is conducted peacefully.
Stanbic IBTC declared a final dividend of N2 to its shareholders. There was significant growth in the Group’s topline and bottom line figures. How sustainable is this growth? At the current price of N39.9, is the N2 dividend capable of pushing the price further?
That Stanbic IBTC declared N2.00 is not a surprise because they have declared above that amount in the past and hope to sustain the trend. Already the price reflected the gained. Its movement from N28 to N40 is an appreciation of about 35%. The price may not be further up because the current price is the highest price of banking shares.
Custodian Investment has also released their audited report with growth in turnover and profit after tax year on year. Is the proposed 55 kobo dividend fair enough? Is Custodian a good buy at N5.8?
The proposed 55k Custodian Investment is good enough and 55k dividend is the highest dividend in the Insurance Companies.
It can sustain the price with a dividend yield of 10%, the best in the Insurance sector, it’s good to take position for long term.
Why is UCAP trending down? Is it a good by at N12.20?
UCAP trending down is due to mark down for payment of dividend declared. It’s common practice for the price of most of the stocks after mark down for dividend to go down. It went down as low as N11.50 and bargain hunters that saw good in it and took position. It made fast recovery we witnessed on Friday when it regained maximum 10% and closed at #12.20. It is a good price for long and short term.
What are the possibilities in Ecobank, Access, GTCO, FLOURMILLS, WAPCO, ZENITH and FBNH?
The possibilities in Ecobank (ETI), Access, GTCO, ZENITH BANK and FBNH depend on the outcome of their Audited Account and Corporate Actions which will decide the direction of the price.
WAPCO has already declared N2 dividend which is same with the previous year’s dividend despite improvement in EPS to #3.68. Most of the Investors expect high dividend but were disappointed by declaration of same.
The year end for Flourmill is March not December and therefore, their final result may not be out until May or June.
What are the stocks to watch?
The stocks to watch for the week are; GTCO, ZENITH BANK, TRANSCORP, OANDO, FBNH, UCAP among others