By Nkiruka Nnorom
INVESTMENT analysts in the capital market have recommended the shares of Chemical and Allied Products, CAP Plc, Dangote Cement Plc, Ecobank Transnational Incorporated, ETI Plc and FCMB Group Plc for a buy, saying that they have good upward potential.
Other stocks in the pack are Seplat Petroleum Development Company Plc, United Bank for Africa, UBA Plc, and Zenith Bank Plc.
According to analysts at Cowry Asset Management, a Lagos-based investment banking firm, in their stock pick for the week, they observed that UBA Plc has an upside potential of 170.40 percent and placed the full year price target at N16.63 from the current market price of N6.15 as at the close of trading on Friday, June 14, 2019.
ETI and FCMB are projected to have an upside potential of 136.67 percent and 138.77 percent and full year price target of N23.31 and N3.99 per share respectively.
Zenith Plc is also projected to have an upside potential of 58.72 percent and price target of N31.74, while CAP, Dangote Cement and Seplat are projected to have an upside potential of 28.62 percent, 48.14 percent and 61.55 percent and price target of N40.00, N272.5 and N829.4 respectively.
Meanwhile, the analysts have expressed dividend opinion on the state of the market this week.
Analysts at Cowry Asset Management noted that there would be a general bearish activity in the market in the absence of a major stimuli, although mixed with pockets of bargain hunting activity by speculators positioning ahead of half year, H1 2019 corporate result announcements.
In their view, analysts at Afrinvest Securities, explained that investors would begin to cherry pick fundamentally sound stocks as H1’2019 earnings season approaches.
Cordros Capital, on the other hand, reiterated that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for market recovery in the medium term, but guided investors to tread the cautious trading path in the short term.
Breakdown of transactions last week showed that the equities market remained bearish amid sustained profit taking activity in line with expectations.
Specifically, the overall twin market performance guages, the Nigerian Stock Exchange, NSE, All Share Index, ASI, and the market capitalisation, declined by 1.27 percent each to close at 30,046.70 points and N13.23 trillion respectively.