Analysts list Fidelity Bank ,Diamond Bank as stocks to watch

By Peter Egwuatu

DESPITE the bullish trend which persisted in the last two trading days on the Nigerian Stock Exchange, NSE leading to a halt of persistent decline since the beginning of the year, NEM Insurance Plc and Resort Savings & Loans Plc recorded the worst performance last week.

Specifically, Investors’ selloffs of NEM Insurance and Resorts Savings in the secondary market contributed significantly in the drop of their share prices by -33.46 percent and -26.00 percent to close N1.73 and 0.37 kobo respectively to lead the laggards.

Nigerian Stock Exchange

Other top equities that lost during the review week following negative sentiments are Unity Bank Plc which declined by -17.00 percent to close at 0.83 kobo per share, followed by Custodian Investment Plc which declined by -13.11 percent to close at N5.30 per share  and Flour Mills Nigeria Plc losing -11.67 percent to close at  N19.30 per share.

Meanwhile, analysts at Vetiva Capital Management Limited in their forecasts for this week said: “With investor apathy dampening activities last week, we do not think that Friday’s positive close indicates a convincing reversal in trend. Therefore, we anticipate mixed trading at the start of next week, but with a negative tilt.”

The stock to watch according to analysts are Fidelity Bank Plc and Diamond Bank Plc . Following four straight red closes, Fidelity Bank gained in the last three consecutive sessions, initially losing 8 percent before a cumulative gain of 11 percent. The stock currently trades at ?2.00, down 1.5 percent in 2019.

Also, analysts noted that while Access Bank continued to witness sell pressures Week on  Week (W-o-W ) loss of 2.6percent,  buying interest in Diamond Bank, (W-o-W)  return of +12.2 percent has remained upbeat following the premium investors will earn on Diamond Bank at the conclusion of the entities’ merger.

Though the market weekend closed on a bullish trend but lost 560.58 points or 1.9 percent in the five trading days to close at 29.830.58 points, while market capitalisation declined by N212 billion or 1.9 percent to close at N11.124 trillion from N11.336 trillion it closed at the beginning of the week under review.

Meanwhile, a total turnover of 1.265 billion shares worth N14.074 billion in 19,278 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.647 billion shares valued at N8.413 billion that exchanged hands penultimate week in 14,773 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.072 billion shares valued at N8.795 billion traded in 12,287 deals; thus contributing 84.73 percent and 62.49 percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 83.595 million shares worth N155.485 million in 750 deals. The third place was Consumer Goods Industry with a turnover of 50.537 million shares worth N3.432 billion in 2,576 deals.

In summary, twenty-two (22) equities appreciated in price during the week under review, the same with twenty-two (22) in the penultimate week. Forty-four (44) equities depreciated in price, lower than forty-five (45) of the previous week, while one hundred and three (103) equities remained unchanged higher than ninety-seven (97) equities recorded in the preceding week.


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