The Nigerian stock market closed Wednesday on a positive note with growth of 0.12%. So far this year, the market has obtained a return of 15.82% with the Index of all shares and the Market Capitalization at 49,475.43 points and N26,948 trillion.
In a stock market review with Mr. Gilbert Ayoola, an experienced capital market expert, the following was discussed.
• The stock market closed Wednesday on a positive note with a growth of 0.12%. Is the market likely to end the week positive?
The market started the week on a promising note as bullish investor sentiments, mainly in some strong fundamental stocks, sent the stock market heading north. This sentiment is shared equally across various market segments and continues into this mid-week, Wednesday closing the stock market on a positive note.
However, stock market activities have been a mixed reaction of both profit taking and repositioning of investors’ portfolio towards the end of 2022, and in anticipation of the fourth quarter earnings release for the dividend declaration; and also possibly a price increase for the new year, as we are currently experiencing a redirection of funds from the money market due to inattention to interest rates.
• What is driving the price of University Press and Africa Prudential?
What is responsible for the price movement at University Press is purely the movement of market forces from some savvy investor due to the low stock price vs. second quarter performance. And at the same time, when he was looking at his current 52-week low of N1.36 and earnings per share of 69 kobo compared to a year earlier of 57 kobo.
On the other hand, Africa Prudential pricing is also due to positive investor engagement and company vigilance based on 52-week low of N5 looking attractive and PE ratio of N9.66.
• How attractive is Champion Breweries at N4.30?
Apart from the fact that it is a company wholly owned and acquired by Nigerian Breweries. It is able to grow its third quarter by increasing its gross profit to N9.5bn from N7.08bn compared to the prior year 2021. Similarly, it increased its PBT by N1.79bn and PAT by N1.26bn considerably.
It also increases its earnings per share from currently 8.11k to 16.09k. When considering its performance, the stock looks attractive for a second thought and consideration at the current price of N5.30.
• What are the possibilities in Learn Africa, FBNH, GTCO, Fidelity, UBA and UCAP?
Learn Africa in light of its Q2 earnings reports still looks very strong in line with its underlying fundamental metrics.
While FBNH, GTCO Fidelity, UBA are equally good in view of their nine-month performance. Similarly, it commands an appreciable and considerable volume of market shares in terms of demand and quality traded by investors.
UCAP also continues to appreciate and remains strong due to its strong fundamentals coupled with diversified asset classes, prudent management and the dynamic nature of the board.
• What are the actions to monitor?
Among the stocks to watch out for, investors should consider stocks like Zenith, ACCESSCORP, GTCO, MTN, WAPCO, Nigerian Breweries, Presco, Okomu, Total, Cornerstone, Conoil, Mansard, and many others.