No doubt, barely one month after, the market has not proven us wrong as year-to-date (YtD) positive return stayed at +10.18percent At the beginning of the year, we showcased Nigerian stocks investors should buy in this year 2022 as a guide to those seeking both capital appreciation and long term returns in form of dividend yield.
Notwithstanding imminent risks to equity market rally in 2022, we also noted that Nigerian stocks are still attractive and should remain resilient in the year 2022.
No doubt, barely one month after, the market has not proven us wrong as year-to-date (YtD) positive return stayed at +10.18percent as at Monday, February 14, despite recent activities of profit takers.
Some of the stocks we asked investors to watch that were undervalued and presented attractive BUY opportunities for value hunters and how they have performed year-to-date (YtD) are Dangote Cement Plc (+6.9pecent), MTN Nigeria Communications Plc (+1percent), Lafarge Africa Plc (+10.6percent), GTCO Plc (+5.2percent), Nestle Nigeria (-7.8percent), Zenith Bank Plc (+7.2percent), and BUA Cement (+5.5percent).
Others are: United Bank for Africa Plc (+7.5percent), Fidelity Bank Plc (+12.5percent), Access Bank Plc (+10.8percent), Stanbic IBTC Holdings Plc (-2.8percent) and Flour Mills of Nigeria Plc (+3percent).
Some of the companies above are resilient bellwethers with a history of sustaining earnings growth through political cycle.
Others are: Unilever Nigeria Plc (-5.2percent), Okomu Oil Palm Plc (-10percent), Presco Plc (+8.2percent), Vitafoam Plc (+8.4percent), Berger Paints Plc (-2.3percent), Ardova Plc (-2.3percent), SEPLAT Plc (+33.2percent) and Total Energies Marketing Nigeria Plc (+8.6percent).
Read also: Investors lose N75bn as stock market opens week on negative note
Also on analysts BUY list for 2022 include Dangote Sugar Refinery Plc which has risen by 0.9percent year-to-date, Guinness Nigeria Plc (+24.5percent), Conoil Plc (+20.5percent), FCMB Group Plc (+0.3percent), May & Baker Plc (+10.7percent), Fidson Healthcare Plc (+30.1percent) and Neimeth International Pharmaceuticals Plc (+3.4percent).
In their February presentation at the Lagos Business School (LBS) Executive Breakfast Session, Financial Derivatives Company noted that interest rates direction and corporate earnings will serve as a major watchdog for investors.
According to the analysts, upward trend in interest rates will trigger sell-offs in equities space, “but investors still expected to rally for capitalised stocks in near term.They added that the equities market will be stimulated by strategic positioning for attractive dividend yields and impressive corporate earnings performance. Though, they are also of the belief that political uncertainties will make investors tread cautiously.In their stock recommendation for the week, Afrinvest research […]