Nigerian Banks Lead Stock Picks as NGX Sets New Record

In late September, Nigerian banks have emerged as the leading focus in equity recommendations, with UBA, Access Holdings, ETI, FCMB, GTCO, and Zenith Bank each receiving at least four positive ratings from a review of six brokerage reports. The Nigerian Exchange (NGX) has been on a record-breaking trajectory, with the NGX All-Share Index rising 2.78 percent in the week ending September 18 to 249,804.56 points, and further advancing 0.14 percent to close at 250,156.80 points.

Market capitalization reached N162.39 trillion. UBA received four positive ratings with target prices ranging from N50.13 to N66.07.

Access Holdings also secured four Buy ratings with an average target of N42.78 against a reference price of N29.15. ETI's targets varied widely from N107.63 to N296.02, while FCMB, GTCO, and Zenith Bank received four positive recommendations each.

However, Arthur Steven Asset Management issued Sell ratings for GTCO and Zenith, indicating significant valuation differences among brokers. Analysts advise caution in interpreting average target prices.