STOCKS TO WATCH

EYES ON THE BALL:

STOCKS TO WATCH - 

THE 'BIG 5'

•"Believe in yourself and there will come a day when others will have no choice but to believe with you".

     ~ Cynthia Kersey•

•"The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty".

     ~ Winston Churchill•

The performances of the 'Big 5' at the Nigerian Stock Exchange on Wednesday, November 14, 2018 were as follows:

(1). GUARANTY TRUST BANK.                 

Price = N36.40 (flat).

Volume = 12,525,131 units.

Amount = N456,506,900.

(2). ZENITH BANK PLC.

Price = N24.05 (-20 kobo).

Volume = 20,721,430 units.

Amount = N497,847,500.

(3). UNITED BANK FOR AFRICA.

Price = N7.95 (-5 kobo).

Volume = 7,859,966 units.

Amount = N62,760,580.

(4). ACCESS BANK PLC.

Price = N7.90 (+5 kobo).

Volume = 22,385,302 units.

Amount = N176,844,250.

(5). FBN HOLDINGS PLC.

Price = N7.50 (+5 kobo).

Volume = 72,070,538 units.

Amount = N541,220,800

 

•"The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets".😄😄😄

     ~ Robert Kiyosaki•

DAILY INVESTOR MONITOR: 

WEDNESDAY, NOVEMBER 14, 2018.

•"A true friend never gets in your way unless you happen to be going down".

     ~ Arnold H. Glasow•

•At the Market on today, Wednesday, November 14, 2018, it was a mixed grill for the 'Big 5' stocks. 

United Bank for Africa and Zenith Bank journeyed southwards, losing 5 kobo and 20 kobo respectively.

On the other hand, Access Bank and FBN Holdings plc cruised northwards, gaining 5 kobo apiece.

Guaranty Trust Bank plc closed flat (no gain/no loss) at N36.40 per share.

•"There are risks and costs to a programme of action. But they are far less than the long-range risks and costs of comfortable inaction".

        ~ John F. Kennedy•

OTHER BANK STOCKS:

. The performances of the remaining bank stocks, though not within our radar, were as follows: 

1. Stanbic IBTC Holdings plc

N48.00 (flat).

2. Ecobank Transnational Inc.

N15.70 (flat).

3. Union Bank of Nigeria plc

N4.85 (flat).

4. Fidelity Bank plc

N2.00 (flat).

5. Sterling Bank plc

N1.60 (flat).

6. FCMB Group plc

N1.60 (+2 kobo).

7. Diamond Bank plc

N0.95 (-10 kobo).

8. Unity Bank plc

N0.85 (+7 kobo).

9. WEMA Bank plc.

N0.53 (flat).

10. JAIZ Bank plc

N0.40 (-4 kobo).

The Tier-2 banking stocks equally exhibited mixed grill, with:Stanbic IBTC Holdings plc, Ecobank Transnational Inc., Union Bank, Fidelity Bank, Sterling Bank and WEMA Bank closing flat (no gain/loss).

Diamond and Jaiz Banks declined in prices, losing 10 kobo and 4 kobo respectively.

FCMB Group plc and Unity Bank moved northwards, gaining 2 kobo and 7 kobo, to close at N1.60 and N0.89 per share respectively.

These stocks, especially the 'Big 5' are trading at a discount 

vis-a-vis their fundamentals as reported in their Q3'2018 unaudited financial statements.

The foregoing can be collaborated by the price change (negative) year-to-date (Tuesday, November 13, 2018:

. Guaranty Trust Bank: -10.7%.

. Zenith Bank: -5.4%.

. United Bank for Africa: -22.3%.

. Access Bank: -24.9%.

. FBN Holdings: -15.3%.

. Ecobank: -7.6%.

. Fidelity Bank: -18.6%.

. Diamond Bank: -30.0%.

. Union Bank: -37.8%.

 

I believe that these stocks will firm up before the end of the year, if the political environment is not adverse. 

Diamond Bank traded 29,601,668 units in 101 deals for N27,595,168. It is however dropping at a fast rate. This is due primarily to the fake news that Access Bank wants to acquire it. Both Banks have denied it, but investors are probably not convinced. The share price of Diamond Bank dropped by 9.4% on Monday, closing at N1.16. On Tuesday, it dropped by 9.5% (-11 kobo), closing at N1.05 per share. On Wednesday, it dropped by 10 kobo, closing at 95 kobo. It was equally on offer, to the tune of many millions. Therefore, the expectation is that it will still drop on Thursday. What a calamity FAKE NEWS is causing to Diamond Bank plc. May I add that the crash in Diamond Bank's share price has afforded investors a good entry point. I foresee the share price of the Bank stabilizing early next week, when investors are convinced that Diamond Bank is robust and not planning to be bought over by Access Bank plc. 

•"The world has a habit of making room for the man whose words and actions show that he knows where he is going".

       ~ Napoleon Hill•

•"Count your age by friends, not years. Count your life by smiles, not tears".

         ~ John Lennon•

•"I decided long ago never to walk in anybody's shadow; if I fail, or if I succeed at least I did as I believe".

       ~ Whitney Houston .

•Dated: Thursday,  November 15, 2018 @ 3.26 pm