Stanbic IBTC, Access Holdings,Zenith Bank, CAP Plc , FLOUR MILLS and MTN top stocks to watch this week

Stanbic IBTC, Access Holdings,Zenith Bank, CAP Plc , FLOUR MILLS and MTN top stocks to watch this week

Nigerian stocks may not be drawing big inflows from investors abroad because most of current investments are already trapped in the system as the dollar reserves hit new lows and the apex bank is seizing at every chance to control the greenback.

But, in some way, equities are finding resilience. Local participation has been keeping the market going since the start of the year, with shares having yielded 20.3 per cent or N5 trillion so far this year.

With the half-year financials of big lenders like Access Corporation, GTCO and United Bank for Africa expected to hit the market in a few weeks, there is optimism that they lift trade further if earnings come out stronger.

Our correspondent  has assembled a number of stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.

The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will gain value with the passage of time, particularly in the short term.

This is not a buy, sell or hold recommendation but a stock investment guide. You may have to involve your financial advisor before taking investment decisions.

STANBIC IBTC HOLDINGS

Stanbic IBTC tops this week’s pick on the combined strength of posting a 36 per cent jump in net profit and declaring a dividend of N1.50 per unit for the first half of the year, the latter a half more than what it paid shareholders a year ago.

The feat came as revenue accelerated by 45.2 per cent, thanks to improved non-interest income.

The lender’s price-to-earnings (PE) at market close at the last session was 5.8x, while earnings per share (EPS) is N4.82.

ACCESS HOLDINGS

Access Holdings appears on the list for trading far below its real value, meaning it has prospects of good share appreciation in the short term.

The company’s PE ratio at the last trading session was 1.8x, while its EPS is N4.58.

MTN NIGERIA

MTN features in the selection this week on its current expansion push leading to the launch of the pilot phase of its 5G technology. The wireless carrier is betting big with capital expenditure by taking the long view ahead of rival telcos, having lined up seven cities to start deployment within the country.

FLOUR MILLS OF NIGERIA

Flour Mills features in the pick for currently trading significantly below its real value and for trading at its 52-week low, both factors stoking its chances of recording reasonable improvement in its share price soon.

The industrial giant’s PE ratio was 4.5x as of the end of the last trading session, while its EPS is N6.47.

ZENITH BANK

Zenith makes the cut for currently trading well under its real value, an indication the stock stands a chance of seeing considerable improvement in its share price in the future.

The financial institution’s PE ratio as of Friday was 2.8x, while the EPS is N7.95.

CAP PLC

CAP appears in the pick for currently trading at its lowest level, making that a good entry point for investors seeking to gain strategic advantage.