The stock market last week closed was down by 1.10% due to profit taking, bringing the All Share Index and Market Capitalisation to 67,395.74 points and N36.886 trillion respectively. Year to date, the market has returned 31.50%.
In a stock market review with the MD/CEO of APT Securities and Funds Limited, Mallam Garba Kurfi, the following were discussed:
The market last week closed bearish due to profit taking, shedding 1.10% week on week. What is the outlook for the new week?
In this new week, we expect the market to remain the same in view of the marked down for interim dividend declared by Banks and BUA Foods. However, the market will likely bounce back before the end of the month in anticipation of Q3 results.
A new CBN Governor has been nominated by the President, how is this news likely to impact the market, particularly banking stocks?
For the first time we have a fellow Chartered Stockbroker as CBN Governor this will promote the Monetary policy that will promote Capital Market activities which will bring Foreign Investors into country. We expect to have Monetary policy that will alligne fiscal policy to promote economy
Inflation rate has risen to 25.08% according to NBS. How would this impact capital market participation?
The rising of inflation to 25.08% is not surprising to us in view of the devaluation of naira and removal of Fuel Subsidy. However, on the other hand it gives confidence to the Investors that the only way to hedge against inflation is to invest in the Capital market with ASI closing above 31% with almost 6% ahead of inflation. We expect to see more funds move into capital market to hedge against inflation.
Oando gained 42.86% in one week. What is driving this growth? How sustainable is this growth?
Oando gaining 42.86% in a week give rising hope that their acquisition of AGIP block oil will be of advantage to the company and the issues of delisting from the NGX may not likely continue. As soon as they release their outstanding Audited accounts and management, it may change the perception of market on the stocks.
What are the possibilities in Vitafoam, UCAP, UBA, Nigerian Breweries and Okomu?
We are expecting better results for Vitaform for the year end 30th September,2023 with a better dividend. Already the stocks hit a highest price of N25 which was never hit in the past.
UCAP is also expected to do better than the previous year in view of its performance.
UBA already suprised the market with an interim dividend 50k which surpassed market expectations.
Is Transcorp a good buy at N6.2?
Transcorp is a good to buy both long term and medium term.
What are the stocks to watch?
The stocks to watch are UBA, OANDO, Dangote Sugar, NASCON, Chellarams, among others