The Stock market on Monday closed on a positive note with a marginal growth of 0.03%. The All Share Index and Market Capitalisation stands at 52,231.29 points and N28.44 trillion respectively.
Ina stock market review with the MD/CEO of Global View Capital Limited, Aruna Kebira, the following were discussed:
• The market on Monday closed on a positive note with 0.03% growth. What should we expect in the coming days?
The market last week gained three days and lost two days but the loss in the two has an overriding strength to cancel the gains for the three days.
Against expectation, especially for Mondays when markets is spectated to be cold, the market closed positive on Monday, May 15, 2023.
At most times, when the market gains on Monday, it closes the week positive. But we have seen much of the markdown for dividends, their payments and the release of the Q1 2023 earnings report. But again, we are getting close to another earnings release season and in between we have expectations in the stocks that doesn’t have December as their year-end.
Give or take, the week would end in the green.
• What is driving the price of Oando?
Oando has released into the market their intention to delist the stock from the Security Official Daily List of the NGX at a price of N7.07. Though the cut-off date has not been said, the lower the investors see the price of the stock going about 20 to 30% lower than the delisting price, they move to take a position back against the announcement of the cut-off date.
Secondly, the market is associating the relationship between the man at the helm of affairs in Oando to the president-elect, and the closer the swearing-in ceremony, the more confident the market has in its thinking.
I believe what is happening there is just market sentiment.
• Is Transcorp a good buy at N 2.84?
Transcorp rose from a marked-down price of N1.35 to N3.24 in its first run, slowed down to about N1.79, reversed and climaxed to N2.84 about N0.40 from its 52-week high.
Information surrounding the stocks is fraught with the acquisition of the shares by the main man and his family at prices higher than the current market price.
The question I ask is after all these acquisitions, would the status-quo ante change, where the value of the stock was deliberately kept low to dissuade investors?
If the answer is in negative, then the price at which it is trading would be considered as good to go but if otherwise, investors at this price and higher should be ready to nurse their burns soon.
• What are the possibilities in Presco?
Presco’s Q4 2022 earning releases have not hit the market. Presco has been known as a performing stock in both growth and quality of payout dividends.
The chance is, that they may be waiting for the consolidation of their result with that of Siat and that might be the reason of the delay.
At the current price of Presco, I think it is good to go
• How attractive are the following stocks: Access Corp at N10, BUA Cement at N90, Nigerian Breweries at N32.1, Fidelity at N5.7 and FBNH at 12?
Access Corp at marked down price reversed but the off-market deal’s price at N10.40 trigger a reverse. But I tell you, Access would be the stock to beat when the dust surrounding its expansion settles.
Nigerian Breweries is a cat with nine lives, the current punishment from the market is a fallout of their lackluster dividend payout for Q42022 and the losses they sustained in Q12023.
The loss is a result of the effect of the happenings associated with the Q1 involving scarcity of the Naira notes.
Since the situation has normalized, NB is cheap at the current price.
• What are the stocks to watch?
Presco, Nigerian Breweries, Cadbury and Access