LAGOS, (Sundiata Finance) – Analysts at InvestData Limited said Zenith Bank, ETI, UBA and Access Bank are financial stocks to buy in second quarter of 2017. According to them, these stocks are undervalued financial stocks that investors should invest in, looking at their performance.
Speaking the chief operating officer of the company, Mr Ambrose Omordion said, “Nigeria’s financial services sector, especially the banking industry has always shown resilience in good and bad times of the nation’s economy cycle, despite the overregulation and rising level of non-performing loan driven by a high exposure to oil and gas sector at a time its price on the international market has crashed considerably and only now on the path of recovery.
“Other factors include the devaluation of the naira, exposure to the power and manufacturing sectors by the banks, all of which were propelled by the weak macro-economy due recession and rising inflation rate that stood at over 18 per cent in December before recording its first decline in February after 15 months of gradual but consistent growth as the country remained in recession all through 2016.”
He added that the recently released audited numbers reveal the latest position of players in the sector in 2016 as they recorded gains in the last quarter of 2016, which they hope to consolidate in the first quarter of the year as the forex policy continued to favour the sector.
According to him, this should lift the stocks to new highs at mid-year and this financial sector is set to lead the next rally. He pointed out that the banking sub-sector remains of the main drivers of the equity market since the beginning of the year.