UPDC Plc is one of Nigeria’s established institutional property companies. Founded in 1997 as a spin-off from the United Africa Company of Nigeria (UACN) Plc, and listed on the Nigerian Exchange (the Nigerian Stock Exchange) the following year in 1998. Custodian Investment Plc acquired controlling stake in UPDC Plc, following a binding agreement with UACN Plc in August 2020 to purchase a 51% majority stake in the company. Thereafter, Custodian Investment executed a Mandatory Takeover Bid (MTO) for the minority shares in May 2021 to solidify its control of one of Nigeria’s premier, institutional real estate giants. Since its acquisition by Custodian Investment Plc, the company has undergone a major financial and operational turnaround
Over the years, the company has garnered experience in the acquisition, development, sale, and management of properties across the residential, commercial, retail, and hospitality segments.
Current price: N3.50
Rating: Buy
Price projection: N6 and N10
Technical Analysis
In this report, we shall use the following tools and analysis methods:
Elliott’s wave theory to understand the overall market sentiment
Fibonacci tools to determine support and resistance levels
The Relative Strength Index and volume to evaluate the market’s strength
The Money Flow Index to determine the market liquidity
Moving average and MACD to understand the nature of the trend
Top-down analysis to know the best investment position
Elliott wave analysis
Weekly chart: Market overview
On the weekly chart, UPDC Plc should finish its 3-3-5 deep correction soon. Given this sentiment, the bearish momentum has waned as buyers attempt to regain control of the market. In line with this performance, the stock’s volume remained low. Also, its liquidity and momentum have regained strength, aligning with the current market sentiment
Daily chart: Trading opportunity
UPDC remains deep in its corrective phase; thus, investors should expect strong support at N2.50 and N3. The indicators on the daily chart attempt to recover as money flow tilts upward, and RSI has sustained an upward trend – signaling divergence. The price projections for this stock include N6 and N10 per share.
