Investment experts at Bancorp Securities Limited, a leading investment research and consulting services firm, have predicted mild bullish momentum and portfolio rebalancing in the Nigerian Exchange (NGX) this week as the profit taking activities remain unabated in the nation’s investment space.
The researchers, in the firm’s ‘Weekly Stock Recommendations July 3- July 7, 2023’ circulated to our correspondent on Monday, recalled that last week the equities market was dominated by bullish sentiments as Investors await Half year results of Corporates
According to the investment analysts, in the week under review the market’s performance exceeded decade long thresholds as the NGXASI crossed 60,000 basis points amidst improved sentiments, which was triggered by continual reforms in the macro economy.
They pointed out that the enhanced activity in the foreign exchange (FX) market and quarter-end activities of Portfolio Managers might have also impacted the performance within the week.
On the sectorial performance of the local bourse, the firm’s researched noted that activities in the Financial services sector, Oil & gas sector, Conglomerates sector and the Consumer goods sector, boosted the week’s trading activities with 74%, 4%, 4% and 4% volume contributions respectively. In the
Based on the bullish sentiments across most sectors of the bourse, they projected that this week, they expected “mild bullish momentum, alongside portfolio rebalancing, which would be driven primarily by profit taking activities. Half year results for companies are expected to be out in coming weeks, we therefore encourage our investors to trade in stocks with good fundamentals, amidst an increasingly liquid and dynamic macro economy.”
Despite the bright outlook of the equities market for returns, the Bancorp Securities experts only recommended WAMCO for buy this week but advised investors to hold investment decisions on 10 stocks, including LAFARGE (WAPCO), NESTLE and NIGERIAN BREWERIES.
