WATCH: Stock pick — JSE banks index

Robert Towell from Sasfin Securities chose JSE banks index as his stock pick of the day.

He said the banks have had a good run since December and are still showing some value.

“If the market gets sold off a bit, you can look to pick up some FirstRand, Nedbank and Standard Bank stocks. They were all trading on a 10 or 11 price-earnings (PE) ratio at the end of last year and Absa went all the way down to about an eight PE but there was still some good value there.”