This week is set to define Nigerian stocks and the overall economy following recent happenings in the country. This can be attributed to the massive depreciation of the Naira as a result of falling global oil prices. Nairametrics, a Nigerian stock analysis portal, has therefore identified the following stocks to be watched closely, with some gaining and others losing.
The leading Construction Company closed at under N45 last week, hitting its year low. In the short to medium term, this price is rather attractive and has quite a level of potential. Grounded on the current happenings the stock is probably worth between N45 and N50 using conservative estimates. According to the report, post volatility, this stock should be worth N60 – N65 again. Long term under N55, short term under N47.
Africa’s largest cement company, Dangote Cement has been under a lot of selling pressure following the sell-offs that began at the end of 2014. Over the last two weeks, hitting a price between N150 to N160, this stock now carries a 10-20 percent upside. Long term buy under N165, short term under N160.
Guaranty Trust Bank
Nigeria’s largest lender by market value, Guaranty Trust Bank Plc. Traded under N18 two weeks ago, hitting a year low. However the stock closed last Friday at N21, a 17 percent gain already. According to the report, this stock is headed down as another sell-off beckons, with long terms under N21, short term Under N19 and sell short term above N20.
Nairametrics stated that Access Bank Plc is set to commence their Rights Issue this week. At a current price of N4.99 an instant upside in price may be a little risky. After UBA began its rights issue, its share price surpassed the right issue price of N4 before dissolving out and falling below N4. This could also be the case for Access Bank if care is not taken. According to the report, there probably is a 10-15% short term upside of the existing price; long term under N8, short term under N5.
Other stocks to be noted include; NASCON, PZ, International Breweries, Seplat, Custodian and Allied Insurance, UBA.