One of Nigeria’s most popular stockbroking firms, Meristem Securities, listed the following stocks as one to watch this week. This was contained in a report sent to its subscribers and we thought to share with you, our readers.

As usual, contact your financial adviser if you require any financial advice. All disclaimers apply.

GUARANTY

  • The counter gained 7.03% in the week, to close at NGN39.60 settling its year to date return at 60.32%.
  • The RSI at 58.18, though still upward trending, signifies that the ticker is tending towards the overbought region. Similarly, the MACD shows that there are still positive sentiments on the stock, though minimal.
  • The candle further supports this assertion, as bullish candles were seen.
  • Despite the fact that the stock is trading close to its year high of NGN41.10, technical indicators indicate the possibility of a gain at the start of the week, however, we believe that this might reverse towards the end of the week

CONTINSURE

  • The stock appreciated by 9.79% to close at a 5-year high of NGN1.57 at the end of last week.
  • The RSI at 75.37 shows that the stock is in the overbought region and sell sentiments may begin to arise. The breakout above the upper Bollinger band also supports this.
  • However, the MACD still signals growing positive momentum towards the counter.
  • It is likely that the stock may gain slightly at the start of the week before profit-taking activities ensue towards the close of trades for the week.
  • Average Volume Traded YtD 18,125,918 Average Price YtD (NGN) 30.86 Closing Price (NGN) 39.60 YtD Return 60.32% Year High (NGN) 41.10 Year Low (NGN) 22.90
  • Average Volume Traded YtD 3,754,744 Average Price YtD (NGN) 1.23 Closing Price (NGN) 1.57 YtD Return 58.59% Year High (NGN) 1.57 Year Low (NGN) 0.96
  • Beyond fundamental valuations, stock price movement is also tied to investor sentiments.
  • This report seeks to envisage trends and patterns using technical analysis indicators. Therefore, our intention with this report is not to give stock recommendation which is largely based on fundamental analysis, but to provide an alternative perspective to the outlook of market and stock prices & volume behaviour.

UBN

  • The ticker lost 5.50% in the week, to close at NGN5.67 settling its year to date return at 3.09%.
  • The RSI currently stands at 46.89 and is also downward trending, which shows that the counter is getting close to the oversold region. The MACD signals growing negative sentiments on the counter.
  • The counter also signified that there are negative sentiments on the counter
  • The bank commenced its earlier planned rights issue in the previous week, with an offer price of NGN4.10 per share. We believe that the selloffs on the counter was in reaction to the price of the rights.
  • Technical indicators show a possible decline at the beginning of the week.

ETERNA

  • The ticker shed 3.51% in the week, to close at NGN3.30 settling its year to date return at 6.45%.
  • The RSI which stood at 24.05 indicates that the counter closed the week deep in the oversold region.
  • The MACD which began to trend upward recently shows that the negative momentum towards the stock is moderating.
  • Given that the stock closed at its 4-month low and even broke below the lower Bollinger band, a reversal of the downward trend is imminent.
  • It is expected that bullish sentiments will arise according to the technical indicators. Also, investors take advantage of the relatively low price the stock is trading at given the company’s strong fundamentals.

 

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