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Analysts Forecast Cautious Trading In Equities Market

Investment analysts at Bancorp Securities Limited, one of Nigeria’s investment research and consulting firms, have predicted that investors would sustain cautious disposition in their investment moves this week at the equities market as the monetary authorities meet to decide on key lending rates.

The experts projected: “We envisage an extension of cautious trading this week as investors focus on the outcome of the MPC meeting holding this week.”

Despite this forecast, the experts, in the firm’s ‘Weekly Stock Recommendations: Sept 26th – Sept 30th  2022’ sourced by our correspondent still recommended four blue chip stocks as strong buy for investors based on the listed entities’ recent sound financial and other performance assessment criteria.

The recommended stocks are WAPCO, MTNN, ZENITH and GTCO.

For instance, on why ZENITH remains a strong buy, the investment analysts stated: “We maintain a Buy recommendation on the stock with a target price target of N30.00 on the back of the decent H1 2022 results: stable asset quality; capital adequacy (CAR 21.0% ) and sustainable long-term dividend policy.”

Meanwhile, trading activities on the Nigerian equities market closed in red w/w as sustained cautious trading drove the NGX All-Share Index down 0.91% w/w to close at 49,026 points.

Accordingly, YTD return moderated to 14.77% (previously: 15.8%) while market capitalization shed N241.6bn w/w to N26.4tn.

The Bancorp Securities’ analysts noted that the negative sentiment was buoyed by sell-off witnessed in CADBURY (13%), NGXGROUP (-13%), BUACEMENT (-10%), and TOTAL (-9%) just as trading volume fell by 22.11% w/w to 562.8m units, while total value traded rose 18.0% to ₦9.4bn.

In the week under review, the sectorial performances were broadly negative with the exception of the Banking index which was up 2.3% w/w on the back of price appreciation in FIDELITY, UNITYBNK and ACCESSCORP.

On the flip side, sell pressure on TOTAL, ETERNA, BUACEMEN and BERGER pulled the Oil & Gas and Industrial Goods indices lower by 4.7% and 3.9% w/w respectively.

Also, the Insurance and Consumer Goods indices declined 2.1% and 0.2% w/w sequentially, following losses in SUNUASSUR, CORNERST, CADBURY and GUINNESS.

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