The five stocks to watch this week
EBG
Technical analysis of EBG price movements and momentum of price appreciation, project further upsurge in prices this week and GN Research market analysts predict a week close price of GH¢9.15 and a PE of nine. EBG, with average daily return of 0.11 per cent since year open coupled with a growth rate of 7.06 per cent added 2 Pesewas to investor’s capital gain.
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HFC
Emerging at the top gainer for 2014, the equity, since year open, has recorded improved liquidity levels and phenomenal price appreciation after the announcement by Republic Bank buy back shares and analysts are optimistic the momentum of growth in price will resurface this week and recommend a hold strategy for all investors. We predict a week close price of 1.78.
ETI
Analysts maintained ETI as a stock to watch this week although the equity recorded no movement in price for two weeks. Its current price of GH¢0.36 is above its year-open price of GH¢0.28 and analysts predict upside movement in prices this week looking at its momentum of price changes
BOPP
BOPP traded flat to maintain the fourth position of analysts picks for the week and we still maintain that BOPP is essential for every investment portfolio after emerging as the top gainer for the first quarter of this year, recording a price appreciation growth rate of 3.96 per cent. BOPP currently is one of the most liquid equities on the exchange and recommends a hold strategy for shareholders since analysts are optimistic capital gains will surge up this week.
FML
FML, after registering a return on equity ROE of 18.9 percent in 2014, the lowest for the past 10 years, and a corresponding P/E ratio of 45 (the highest in 10 years), lost investors’ attraction significantly.
However,the past weeks have seen the stock appreciate marginally, adding Gp21 to emerge as the top absolute gainer.
Analysts positioned FML at number five as the power crisis and sharp currency depreciations still pose major challenges for the manufacturing industry, facilitating a decline in returns for the entire industry.
However, with a growth rate of 5.23 per cent, we anticipate further appreciation in price this week to close at GH¢5.60.
