Stock Market Review: November 22, 2022


ruth ibikunle

The Nigerian stock market closed positive on Monday with growth of 0.38%. So far this year, the market has returned 4.56% with the All Stocks Index and Market Capitalization at 44,662.96 points and N24,327 trillion, respectively.

In a chat with Aruna Kebira, MD/CEO of Global View Capital Limited, the capital market guru provided insight into the current mood of the market and how to make sound investment decisions.


The stock market opened the week on a positive note with growth of 0.38%. What could be driving it?

Investors and market traders have continued to analyze and interpret the various information in the market and the latest inflation figure to reorganize their portfolios and take a hedging position against rising inflation in some stocks with high dividend and earnings yields. strong to support a higher payment as a financier. the end of the year for many companies is approaching.

The currency redesign of the Central Bank of Nigeria (CBN) along with the expectation of the outcome of the last MPC for the year scheduled to be held on November 21-22, 2022 are the indicators that investors are using to reassess the future of the currency. rise in the MPR while waiting for the GDP figure for the third quarter.

It is observed that investors clung to cash as in a bear market, cash is king. This they did while waiting to confirm the next direction of the market.

In this context, there has been increased buying interest in most stocks, especially bank stocks.

It is when the demand exceeds the supply that we see an increase in the price of a share and the consequent effect on the ASI and that was the case in the market on Monday.

There were only 6 losers on Monday against 26 winners. Can we say that the bull is back?

The presence of the bulls significantly is the situation that happened on Monday, but the market expects a run higher in the month of December, if that starts now, it would not be considered too soon.

But we need to look at the outcome of the trading session on Tuesday for confirmation of the return of the bull.

If what happened on Monday is repeated as confirmation on Tuesday, then we can say that the bull has returned.

What drives the price of Nigerian Breweries, NEM Insurance, PZ and Cadbury?

Remember that the corporate affairs commission (CAC) gave all corporations until December 31, 2022 to allocate their unissued shares to existing shareholders as bonuses and then offer them to the public or as rights issues to shareholders.

Nigerian Brewery chose to give theirs to shareholders in the form of a bonus of 1 new share to 4 existing shares, which is a clear 25%.

In this current market that we have, that was a huge blowout and the price has no choice but to respond to that news and the market is properly rewarding the Nigerian breweries price. PZ is still trading cum div of N1.01k though its qualification date is still well advanced in 2023 i.e. Jan 6, 2023.

This could have been the reason why the stock price rose on Monday.

The movement of the prices of Cadbury and NEM insurance is the rule of the market.

How attractive is Nigerian Breweries at N45.35?

Since the announcement of a 1 for 4 bonus for Nigerian breweries, it has only made 20%. The rating date is December 6, 2022. This is a stock whose 52-week high is n78.00 and the 52-week low is n36.00, the stock has the potential to increase in price up to n60 before the reduction date.

But remember, the stock after the downgrade could find its way back into the neighborhood of n40.00

Dangote Cement proposes to buy back shares in December. How will investors benefit from this?

The repurchase of Cemento Dangote shares has been done in tranches for quite some time. The exercise has always pushed the price up since the repurchase is at a price.

Investors who could have bought shares at a much lower price will definitely benefit as demand pressure will definitely push the price up.

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

It is noted that a lot of liquidity is entering the banking sector, especially in the last two weeks.

The continuation of this move will boost the prices of the most active bank stocks such as ACCESS, FBHH, Zenith, UBA, Fidelity and GTCO.

The view is also based on the fact that its third-quarter earnings reports were not a disappointment to the market.


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