… Analysts list Unilever, Dangote Sugar, Access Bank as stock to watch

By Peter Egwuatu

Following the bullish market witnessed last week in the Nigerian equities market, financial analysts have predicted that a mixed of profit takings and bargain hunting by investors will characterise the market this week.

To this extent, analysts at Cowry Assets Management Limited in their reactions to the equities market performance, said: “This week, we anticipate a mix of profit taking and bargain hunting as the bourse, (Nigerian Stock Exchange, NSE continues to present several undervalued stocks.”

Analysts at Cordros Capital, a Lagos based investment outfit said: “Notwithstanding the absence of any major short term catalyst, we think market fundamentals (amid improving macroeconomic conditions) remain strong, and the snippets of profit taking seen thus far in value stocks should create an incentive for bargain hunting.”

In similar reaction, analysts at Vetiva Capital Management Limited, said: “With strong positive closes across key sectors and consistently positive market breadth at week close, we expect the healthy positive sentiment to filter into the start of next week.”

While commenting on the stock to watch, analysts tipped Unilever Nigeria Plc, Dangote Sugar , Access Bank as stocks that might interest investors.  Analysts at Vetiva said; “Unilever Nigeria Plc has advanced 11 per cent over the last four sessions and currently trades at ¦ 40.90, well above Vetiva target price of ¦ 26.10, returning 17 per cent Year to Date, YtD.  Also,  Dagote Sugar gained 11 per cent  over the last five sessions as bargain hunters swooped into the stock following an 8 per cent decline over the prior seven sessions. The stock currently trades (N15.80), close to its year high of N15.84 – albeit lower than Vetiva target price of N16.75 and has returned 159 per cent Ytd.”

For Cordros Capital, the analysts said: “Unilever’s share price has moved -8 per cent Quarter to Date, QtD and +26 per cent  YtD, and  we estimate the stock is trading on 2018 forecast  Price Earnings ratio, P/E of 24.7times , a material discount to its five year historical P/E of 57.2 times .”

Meanwhile, last week,  the Nigerian Stock Exchange, NSE witnessed overall bullish activity, resulting in the rise of the overall market performance measure, NSE ASI, by 180 bps to close at 37,365.91 points.

On a year-to-date basis, equities gained 39.04 per cent. On the sectoral front, the NSE Industrial Index, the NSE Consumer Goods, the NSE Banking Index and the NSE Insurance Index increased by 226 bases points, bps, 188 bps, 45 bps and 80 bps to close at 2,098.97 points, 906.42 points, 464.12 points and 138.02 points respectively.

Meanwhile, Wapic Insurance Plc, Dangote Sugar Refinery Plc , Fidelity Bank Plc ,  Transcorp and  First Bank Nigeria Holdings were the most active stocks by volume. Dangote Sugar, Flour Mills, International Breweries,  Dangote Cement  and Fidelity Bank emerged the highest price gainers on the chart, while Nascon, May & Baker, C & I  Leasing , Continental Insurance and Access Bank  topped the losers chart.