UBA, Access Bank, Jaiz Bank among top 10 stocks to watch

UBA, Access Bank, Jaiz Bank among top 10 stocks to watch

INVESTORS seeking competitive and stable returns should consider a portfolio of value stocks in financial services, oil and gas, manufacturing, telecommunications and agriculture.

In its latest “Top Picks”, FSDH Capital, an investment banking group, selected 10 stocks that provide reasonable assurance of returns as the full-year earnings cycle draws near.

The model portfolio by analysts at FSDH included United Bank for Africa (UBA), Access Bank, Jaiz Bank, United Capital, Fidelity Bank, Transnational Corporation of Nigeria, Total Energies, Guinness Nigeria, Okomu Oil Palm and MTN Nigeria Communications.

The top 10 stocks were selected after careful consideration of several variables including current price, historic pricing trend, price-to-book value and dividend yields, among others.

Analysts noted that despite headwinds and globally tepid market condition there are opportunities for investors in the Nigerian stock market.

“As a result, we believe December could present opportunities to investors to take positions in the Nigerian equities market, particularly as we approach the dividend announcement season in first quarter 2022,” FSDH stated.

The report, however, pointed out that in the Nigerian market; investors continue to be averse to risk-taking with a safe approach driving investors into cash and money market securities.

FSDH noted that the foreign investor community remains uninterested due to unfavourable exchange rate policies while domestic investors continue to retain their stand-offish approach.

According to the report in November 2021, equity markets across the globe witnessed a volatile month as wild swings in sentiments kept investors on their toes through the month.

“Looking ahead, the global equities market remains in a precarious state as countries continue to react by placing travel restrictions in bid to curb the spread. In addition, it remains unclear how monetary policy decision makers and other key economic managers will shape their policy outlook given a recurring tightening stance in the past weeks. That said, we anticipate investors will try to buy the dip in the coming trading days, particularly on value stocks that have witnessed significant sell pressures in the last weeks” FSDH stated.

Jaiz Bank, Nigeria’s premier non-interest bank, had sustained its strong growth trajectory in the third quarter with double-digit growths across major performance indices.Key extracts of the interim report and accounts of Jaiz Bank for the nine-month period ended September 30, 2021 showed that gross earnings rose by 32 per cent while pre and post tax profits grew by 53 per cent and 45 per cent respectively.The report indicated that gross income rose from N14.24 billion in […]

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