By Dipo Olowookere
Last week, the stock market closed bearish after declining by 2.64 percent.
Though the market closed bullish yesterday, analysts are of the view that sentiment will remain weak this week as investors take advantage of some the price gains last week to book profit or reduce their exposure to stocks.
according to those at Meristem, bargain hunting on some of the heavily weighted stocks strong fundamentals cannot be ruled out as a result of their currently cheap market valuations.
However, “We expect the market to close lower for the third week, in line with the overall bearish sentiment prevalent in the market. We do not foresee any strong shift in the course of the market right now.”
In its recommendations for the week, the Lagos-based investment firm have listed five stocks investors can watch out for during the week.
UBA, which presently trades at N7.35k per unit, is expected to gain 25.44 percent to hit a target price of N9.22k per share this week.
Zenith Bank, which dropped to N21.80k per share on Mondayb after a loss of 5 kobo, is predicted to yield 25.77 percent to hit N27.48k per share in the week.
NEM Insurance, which traded at N1.73k, is expected to grow to N3.02k, representing a return of 74.57 percent, while NASCON and Dangote Cement are expected to grow by 15.61 percent and 31.14 percent respectively to finish at N20.81k and N232.11k apiece.
