WATCH: Stock pick — Absa

Independent analyst Chris Gilmour chose Absa as his stock pick of the day.

He said the share was “quite compelling” on a forward price-earnings ratio of eight and a dividend yield of 7%, which is “incredibly cheap”.

“Not much is going to happen in terms of earnings growth over the next year or two but there are big changes in top management coming. They are looking to streamline all their processes, cost cutting and working hard to hit their ambitious targets,” he said.