Stock Market Review: November 16, 2022

The Nigerian stock market on Tuesday closed marginally down by 0.02% with the All Share Index and Market Capitalisation at 43,808.25 points and N23.861 trillion respectively.

In a chat with Aruna Kebira, the MD/CEO of Global View Capital Limited, the capital market guru gave insight on current market mood and possibilities for discerning investors.

Excerpts:

• The market on Tuesday declined marginally by 0.02%. Is there possibility that the market will close the week positive?

The close of the market from week to week in the last couple of months had depended on the movement of the constituent of the SWOOT group. The SWOOT group is a group of stocks listed on the NGX with over one trillion capitalisation.
The market is undeniably in the bear session which might persists until early 2023, therefore the market closing the day and week in the red is not a surprise to market watchers and analysts but the swing can come from a gain in the week by any of the constituents of SWOOT, maybe to recover its previous loss or reacting to an extant stimulus.

• Lafarge Africa (WAPCO) led the losers chart on Tuesday. Why is the price trending down? Is it a good BUY?

Lafarge Africa responded to the news concerning its parent company in South Africa which was fined for involvement in terrorism financing.
The market as expected will definitely want to reverse it to the status quo, more so that the stock is not doing badly.
But a group of investors, especially those who stood for ethical investment will find it attractive to exit at the current market price and that movement can lead to a decline in the price. Which was what happened exactly.
At current price and going by their last earnings release, Lafarge Africa is good to go at this current price.

• What is driving the share price of Learn Africa? Is it a good BUY at N1.65?

Learn Africa made a recovery from a loss of N126.432m to a profit of N110.078m representing 187% growth.
The market will always reward performance no matter the situation and how long. At the current price of N1.65k the stock is good to go.
But remember, the price might slow after this, but the fact remains that if their Q3 2022 performance meets that of their Q2, and if the market turns, you will not see the price around it current level

• Japaul Gold is among top 10 gainers on Tuesday with 7.41% growth. What is driving Japaul Gold?

Japaul Gold’s performance in their last earning release surprised the market. And the stock had also been identified by speculator as a good stock for that because of its volatility.
The price is driven by its recent performance and speculators. You should not be surprised if you see it among the top ten losers for the week.

• FTN Cocoa dropped to 31 kobo after growing to 34 kobo on Monday. Is there any news that is pushing the price down? Is FTN Cocoa a good BUY?

The price of FTN cocoa has been trading around the price band of 30 kobo to 40 kobo and back. Discerning speculators knows exactly how to time the waves in between these prices.
I can assure you that the current swings you see in the price of FTN Cocoa is purely on speculative mode.

• What are the possibilities in Access, GTCO, FBNH, Fidelity and Zenith Bank?

Access price has not risen in commensurate of its earnings and the potential embedded in it because the market believes that its balance sheet is highly geared.
But I have the conviction that the moment the market also realise that they don’t necessarily have to deleverage their books before they make good returns, the price will be rightly compensated by the market

GTCO price is steadily on the rise. This is premised on their latest outing. It has been noticed that since the bank went to HOLDCO status that the earnings emanating from them had been on the decline but they changed the tide in their Q3 2022 results.

The good thing about GTCO is that taking position in it, you are guaranteed of N0.30 interim dividend and about N2.70 final dividend . So the lesser price you get it the better.

Fidelity responded positively to its Q3 earnings release and it declining from there gradually. But any price lesser than its current price is a good bargain

Zenith belongs to the class of GTCO. Guaranteed N0.30 interim and N2.70 final. The lesser the price , the better.

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