What is today Sterling Holdings, a financial services holding company has operated in Nigeria for over six decades, beginning as Nigerian Acceptances Limited, an investment banking company. It was licenced in 1969 as Nigeria’s first merchant and later became NAL Merchant Bank. It became Sterling Bank Plc in the aftermath of the banking sector consolidation of 2004-2006 The business evolved from Nigeria Acceptances Limited (NAL) into a full-service commercial bank and subsequently reorganised into a financial holding-company structure. The HoldCo was established to allow Sterling to diversify beyond conventional commercial banking into non-interest banking and wealth management.
Current price: N7.70 each.
Rating: Buy
Price projection: N9.8 and N11.5
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, Sterling Bank sustained a flat ABC correction as investors buy into value constantly. In line with this performance, volume, liquidity, and momentum remained low. This sentiment offers investors an opportunity for long-term investment
Daily chart: Investment opportunity
On the daily chart, the index’s liquidity and momentum remain solid. Also, MACD’s bearish momentum strengthens, suggesting a continuous bearish market. Given this performance, investors should watch N7 and N8 as potential support levels. The price projections for Sterling include N9.8 and N11.5.
