……recommend GTCO, ZENITH, UBA, WAPCO, MTNN as strong buy
Investment analysts at Bancorp Securities Limited, one of Nigeria’s investment research and consultancy services firm, have projected sustained mixed reaction this week and through the month of June in the equities market, barring any positive catalysts
The experts hinged their projection on the current cautious mood of investors as they continued to observe both economic and market stance in their investment decisions.
The Bancorp Securities’ analysts, in the firm’s ‘Weekly Stock Recommendations: June 6th – June 10th 2022’ published on Monday, specifically recommended: “As investors continue to observe both economic and market stance, we anticipate a sustained mixed reaction this week and in the month of June barring any positive catalysts.”
The firm’s report recalled that transaction in the equities market last week closed negative as sentiment dominated the market with the benchmark index closing in red on four of the five of the trading sessions.
It also indicated that the NGX-ASI declined 2.2% w/w to close at 52,908.24 points, YTD return moderated to 23.9% (previously: 26.6%) while market capitalisation lost N634.6bn w/w to N28.5tn.
However, the researchers reported that activity level was significantly up as total value traded was significantly up by 666% w/w to N209bn with UBN, MTN, FBNH and ZENITH being the top traded equities by value. While total volume surged by 1462% w/w to 28.7bn units.
They also noted that the top traded stocks by volume were UBN,TRANSCORP and FBNH contributing 96.89% to the total volume. Sector Performance within our coverage was negative as most of the indices finished lower.
The researchers further stated: “The Industrial Goods index led laggards, down 3.7% w/w, on the back of sell pressure in DANGCEM and WAPCO. Following, the Consumer Goods and Banking indices fell 2.5% and 0.7% w/w respectively, due to price depreciation in NNFM, INTBREW, WEMABANK and FIDELITY.
“Similarly, the Oil & Gas index declined 0.4% w/w due to losses in CONOIL and SEPLAT . Conversely, gains in NEM , SOVRENIN, and MBENEFIT drove the Insurance index higher by 0.8% w/w. Overall, on a monthly basis, the positive momentum witnessed in the previous months was extended as the NGX All-Share Index advanced 6.75% m/m, to settle at 52,990.28 points”, they added.
The Bancorp Securities analysts reported that YTD return rose to 24.05% (previously 16.2%) while market capitalization increased by N1.8tn to N28.6tn.
The experts also noted that total volume and value traded in May sum up to 36.1bn units and N303.9bn respectively, adding that the positive market sentiment is supported by the release of impressive corporate earnings, dividend payments, and a low fixed-income yield environment.
On the firm’s stock recommendations for this week, the analysts listed five stocks as strong buy. They include, GTCO, ZENITH, UBA, WAPCO and MTNN.
They hinged their forecast on the stocks’ strong outing this week on recent performance indices, particularly their Q1 2022 financial results covering strong asset, income, bottom line as well as other performance prospects in the months ahead.
For instance, the firm’s analysts projected that with the final approval of its Payment Service Banking (PSB) Licence for MTNN, they expected “an increased market share driven by sustained data demand, payment service banking, and development of 5G broadband.”
