Atlass Portfolio Releases Stock Recommendation ‘Red List’
With expectation of negative upside potential, Atlass Portfolios Limited has advised investors to exit positions in banking, oil and gas, Agriculture among others.
The investment firm appears to be bearish or negative about the stock market outlook given its huge numbers of sell down laden stock recommendation list release on Monday.
In the banking segment, Atlass Portfolios limited stock analyst excluded Access Bank, FCMB and FBN Holdings from sell and hold recommendation.
“Implies the upside potential of the stock over the next period of 12-months is between 15% and 8% when the current price is compared to our fair value. Hence, investors are advised to remain neutral”, the investment firm said in its note.
The firm recommended that investors should sell their stocks in ETI, Fidelity, GTCO and Stanbic IBTC. It keeps Sterling Bank and UBA on hold rating while the firm advised investors to sell their interest in Wema Bank and Zenith.
In consumer good segment, the investment firm stayed bearish on Guinness Nigeria, Unilever Nigeria, Nestle and Vitafoam. Analysts was neutral on Nigerian Breweries stock, Dangote Sugar and NASCON.
Atlass Portfolios Limited also advised investors to sell their interest in MTN Nigeria, UACN and Lafarge WAPCO but keeps Dangote Cement on buy lists. Major oil and gas names in the equities market namely CONOIL, SEPLAT, ETERNA and Total were downgraded to sell list.
“Sell implies the upward potential of the stock, when the current price is compared to our fair value is less than 8%. Hence, investors may choose to exit position on the stock”, Atlass said in its explanatory note.
The Nigerian equity market closed trading for last week on a positive note despite negative sentiment dominating four of the five trading sessions.
Atlass Portfolios Limited said the performance was primarily driven by buying interest in blue-chip stocks such as BUAFOODS, and 27 others, resulting to a growth of ₦196 billion in investors’ wealth.
The market’s gain was supported by an easing inflation rate and the CBN’s decision to hold interest rates steady. Consequently, the All-Share index increased by 443.88 basis points in the previous week, representing a growth of 0.41% to close at 108,497.40 absolute point. Likewise, the market capitalization rose by 195.94 billion, to settle at ₦67.66 trillion, reflecting a 0.29% gain. #Atlass Portfolio Releases Stock Recommendation ‘Red List’#
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