Analysts propose Zenith, FCMB, GTBank shares for investors

Analysts and capital market commentators have advised the investing public to go for the shares of FCMB Plc, Guaranty Trust Bank Plc and Zenith Bank International Plc.
Commenting on the performance of the stock market and expectations of investors, analysts at Zedcrest Research, a company in Lagos, urged discerning investors to position themselves and invest in the shares of the banks as they are expected to reward them by at least 50 per cent before the end of the second quarter.
While the experts warned shareholders of some political risks they believed could have negative effect on the Nigerian stock market, they were, however, optimistic that with the renewed interests shown by both local and offshore investors, the shares would still perform up to the projection.
A capital market operator, Mr. Emmanuel Adeyemi, said major risk factors that are confronting the market pertain to the delay in the passage of the 2018 budget, which is being felt negatively as the budget is required by public and private sectors and stakeholders to plan and manage their economic activities.
He said the 2018 budget, which was put at N8.612 trillion and presented to the National Assembly by President Muhammadu Buhari in 2017, was tagged “Budget of Consolidation’’, noting that the absence of a budget calendar and lack of coordination between the executive and legislative arms had been the major cause of the delay.
He thus warned that investors must be careful to understudy the policy direction of the Federal Government before taking a decision.
Meanwhile, total turnover of 1.586 billion shares worth N25.992 billion in 21,115 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.331 billion shares valued at N20.835 billion that exchanged hands last week, in 18,695 deals.
The Financial Services Industry led the activity chart with 1.360 billion shares, valued at N20.378 billion and traded in 11,936 deals; thus contributing 85.80 per cent and 78.40 per cent to the total equity turnover volume and value, respectively.
The Consumer Goods Industry followed with 52.727 million shares worth N2.125 billion in 3,301 deals. The third place was occupied by the Oil and Gas Industry with a turnover of 50.092 million shares worth N783.716 million, in 2,153 deals.