Undoubtedly, Access Bank share price already proved strong and defensive enough to gain investors’ confidence. Even during the consistent market drops, the stock strongly maintained support and saved portfolios from crashing. Nevertheless, it is needful to note that it is currently approaching the highest high (N6.50) attained last in 27th May, 2016.
The big question is; will the stock break this long standing resistance or not? Fundamentally, expected earnings for the year ended December 31st 2016 should boost the equity’s share price, especially as the management already announced its board meeting to approve the expected report and decide shareholders’ incentives.
Going by the N1.97 earned in its nine months financial statistics, we estimated a trailing EPS of N1.57 although it was noticed that the bank always posted higher EPS compare to the nine months earnings. On the strength of this, we expect above N2.00 EPS (year ended 31st December, 2016) with about 30% payout ratio. Thus, we project a 60k dividend. If this condition is met, Access Bank share price should break resistance and trade above N6.00 before closing its book in March/April.
In conclusion we hold high the possibility of Access bank maintaining support and beating resistance from now through the closure (all things being equal). Nevertheless, we recommend cautious play. Safe Trade