The stock market on Thursday closed on a positive note with 1.51% growth, bringing the All Share Index and Market Capitalisation to 54,413.21 points and N29.642 trillion respectively.
In a stock market review with Mr Gilbert Ayoola, a capital market expert, the following were discussed:
The market on Thursday closed on a bullish note with 1.51% growth. What is driving this positive vibration?
The equity market has been able to sustain an upward trend movement based on strong fundamentals and earnings report of audited financial statements of some of the quoted companies on the exchange that has been released, thereby closing the market on a positive note.
Supported by this fact is the continued participation of investors that remains optimistic going by the improved numbers and figure in the performance of the company and declaration of dividends. Companies like Okomu, Zenith, UBA, and Nem insurance, to mention a few.
What is driving the price of MTN? How attractive is it at N240?
The price movement noticed in MTN shares is as a result of the investors renewed positioning due to its cheap price presently, likewise the preparation for final dividend payment, which comes up on April 20. Also, the company scrip plan policy for cash dividends conversion for share is due to be ratified by shareholders at the forthcoming AGM.
Looking at the current price, it looks attractive, knowing that it is able to hit a targeted price of N290 per/s. So, it is good a BUY.
Oando has notified the Nigerian Exchange that it will be delisting from NGX and JSE and re-register as a private company. What will happen to existing shareholders?
The planned delisting of Oando from both NGX and the JSE exchange has finally been unveiled. Minority shareholders of the company are expected to take part in the Mandatory Take Over (MTO) scheme for cash consideration of N7.07 or its equivalent. Moreso, the scheme represents a 58% premium to the last traded shares of Oando price on March 28, 2023.
So all minority shareholders are to offer their shares for payment while those unwilling will automatically be carried along under the new status of a private company.
Why is PZ trending down?
The trending down in the share price of PZ is due to market activities and profit taking by investors.
Ecobank declared $0.0011 as final dividend for 2022 year end. This translates to 51 kobo using CBN exchange rate of N460.85 per Dollar. Is this fair enough?
When you look at the financials, the Gross Earnings for the year ended December 31, 2022, it grew to N1.070 trillion, which represents 8% increase compared to the previous year N956 billion. Profit after tax grew to N156.55 billion from N146.33 billion.
Based on the final dividend amount of $0.0011 per share, when compared to the previous year payment of $0.0016 is far too less.
Okomu has proposed a final dividend of N12 to shareholders. How attractive is the stock at N183.5?
The declaration of N12 dividend by Okomu is an improvement over the previous year payout. At the current price of N183.50, it looks attractive knowing that the stock price is capable of hitting a target of N200 per share.
What are the stocks to watch?
The stocks to watch by investors are Zenith, UBA, Fidelity, Oando, CAP, NAHCO, Transcorp, UBA, GTCO, and many more.
Source: Stock Market Review: March 31, 2023 – StocksWatch (stocksng.com)