Analysts Forecast Bullish Sentiment In Equities Market

brtnews
2 Min Read

Investment experts at Bancorp Securities Limited on Tuesday predicted that the bullish momentum that characterized trading sessions in the Nigerian Exchange last week would be sustained this week, albeit at a slower pace.

The experts, in the firm’s ‘Weekly Stock Recommendations: May 30, 2023 – June 2, 2023’ hinged their prediction primarily on profit taking in stocks trading at unprecedented “highs” and portfolio rebalancing activities targeted at the Agricultural and Consumer goods sectors in the preceding week.

They projected: “The bullish run in the previous week is expected to continue at a slower and sparse pace in this current week, primarily due to profit taking in stocks trading at unprecedented “highs” and portfolio rebalancing activities targeted at the Agricultural and Consumer goods sectors.

“The real market is responding sharply to excerpts from the inaugural speech of May 29, 2023 as regards the fuel subsidy removal.

“Noteworthy is the fact that although subsidy removal is a necessary economic reality on our threshold, it however is scheduled to be executed in phases, with the first phase commencing most likely in the third quarter of 2023, when all downstream redistribution contracts with the Federal Government will be reviewed.

“The new administration also reiterated its intent to diversify the economy using the Agriculture sector as a pivotal internal revenue generating sector”, the analysts added.

The investment and economic researchers at the consulting firm recommended LAFARGE (WAPCO) and NESTLE’s stocks  as investable this week based on recent financial and other performance indices of the companies, but recommended a hold on NIGERIAN BREWERIES’ based on what they termed “temporary blow on the returns of this company.”

They, however, projected that “once macroeconomic environment is stabilized enough as it relates to inflation and foreign exchange, this stock is low enough for a good entry point, hence our HOLD recommendation.”

Share This Article