High hopes as countdown to end of 2nd quarter begins
June 1st, 2009 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
As financial as well as stock trading activities resume today ,June 1, 2009, expectations are indeed high regarding the sustainability of the current market rally in the Nigerian market. Today’s market marks the beginning of the end of the second quarter of 2009, which has so far been the best this year.
The current bullish trend being experienced has lasted for about eight weeks now with signs that the bullish trend might not be disappearing any time soon. This is also happening at a time when other world markets in US, Europe as well as Asia have had a bullish run in the last two months. Whether or not this is connected to our market, it’s a possibility is all i can say. As we however end of the second quarter, investors are expecting the release of corporate results of big time companies. These results are important as they have the inherent potential of attracting patronage of investors to the market, thereby sustaining the present bullish trend. Some companies to look out for include:
1. First Bank Plc
The company ended its most recent financial year on March 31, 2009 and is expected to release its result anytime from now. With full year EPS expected to be around N2.00, it is no wonder that investors are stocking up its shares. It closed above the N20 mark on the last day of trading in May 2009. In 2008, the bank rewarded investors with a dividend of N1.20 and a bonus of 1 for 4.
2. Access Bank Plc
An aggressive player in the banking sector, the shares of the bank has appreciated by about 83 percent in May 2009 as it moved from N5.65 at the beginning of the month to close at N10.34 at the end of the month. The bank also concluded its recent financial year on March 31, 2009 and is expected to present its scorecard soon.
EPS for the full year is expected to hit N1.50 and investors are expecting a dividend payout of over N0.65 which was paid last year.
3. Union Bank Plc
This is another company to look out for. In its latest 3rd quarter result, EPS was above the N2.00 mark which is very impressive. Its just concluded its recent financial year on March 31, 2009 and is expected to deliver a superb result.
In 2008, investors enjoyed a dividend of N1.00 and a bonus of 1 for 6 from the company. The bank is known to have one of the lowest number of outstanding shares in the banking sector (about 15 billion units) which is very good.
4. Flour Mills Plc
After gaining 111.22 percent share price appreciation in May 2009, investors are indeed showing their confidence in the company. With a host of profitable subsidiaries and viable business operations, Flour Mills plc is expected to release its scorecard to the public anytime from now. With its financial year concluded in March 31, 2009, investors are expecting a reward better than the dividend of N1.00 and bonus of 1 for 10 declared last year.
In its 3rd quarter result, the company obviously had challenges as a result of the naira-dollar exchange rate amongst other things. Being a veteran in the Food/Beverages sector, investors seem confident that management would however deliver.
Some other stocks to watch out for include Diamond Bank plc, Skye Bank plc, Afribank plc, Wema Bank plc, Dangote sugar plc, Custodian & Allied Insurance and Staco Insurance plc.
 |
It seems to me that this site has undergone meltdown along with global economy,else I wonder how the site is deviod of any news(useful or otherwise)for a considerably long time.
Hello Yemi,
We are refocusing the articles that we write . We may write fewer than we used to, but we will try to make them as valuable as we can.