Modupe Gbadeyanka
By Modupe Gbadeyanka
Despite shares of Zenith Bank Plc performing woefully on the floor of the Nigerian Stock Exchange (NSE) in recent times, analysts at Meristem Research have stressed that the financial institution could make holders of the equities 67.35 percent richer at the end of this year.
In its weekly recommendation, the Lagos-based investment firm said Zenith Bank share could rise to N27.78k per unit from N16.60k each it traded last Friday at the market.
In its four picks for the week, Meristem Research said investors can consider buying Seplat shares because it has the potential of returning 19.52 percent to investors to hit a target price of N585.65k from N490 per share.
Another stock on the list is CAP, which traded at N24.75k last Friday, was tipped to reach N30.85k, yielding 24.65 percent.
The last equity on the recommendation list is NEM Insurance, which is projected to return 44.78 percent to trade at N2.91k per unit from its present value at N2.01k.
On the outlook for the equities market this week, Meristem Research said it remains downbeat, with negative sentiment stemming from macroeconomic and political risks.
However, it stressed that notwithstanding the significantly low prices of counters on the exchange, “we do not expect an upbeat performance due to bargain hunting.
“Furthermore, we do not expect the outstanding earnings releases to spur any positive reactions in the market this week.”
In the week, the National Bureau of Statistics (NBS) is expected to release data on capital importation for Q2:2019 and income and expenditure GDP for Q3 and Q4 2018 and has been the case with other macroeconomic releases, it does not expect any market reactions.
“On a balance of factors, we expect the market to close down at the end of the week.”
Below are other recommendations by the company.
