Investment analysts at Bancorp Securities Limited, a leading investment research and consulting services providers in Nigeria, have projected a flattish broad market performance of Nigeria’s equities market as investors are expected to sustain profit-making drives in their trading decisions.
The experts recalled that in the previous week ended on a gleeful note with the assumption of office by the nominated Central Bank of Nigeria (CBN) Governor, Dr. Olayemi Cardoso, thereby giving some relief to stakeholders on the probable directional movement of monetary policy making, since the suspension and subsequent resignation of his immediate predecessor – Godwin Emefiele.
Specifically, the investment researchers stated in the firm’s ‘Weekly Stock Recommendation: Sept 25 – Sept 29, 2023’ report that In this current week, they expected the sturdy monetary policies to direct the momentum of the economy towards a production based one.
According to them, the postponement of the previously scheduled MPC meeting is possibly linked to the foregoing, however, the strength and sustenance of the value of the Naira is reportedly on the forefront of policy making by the CBN.
This is even as they foresee that the proposed indefinite strike by the NLC, if executed, will amplify bearish sentiments in the economy at least in the interim.
The firm’s analysts further projected: “This current week, we expect the broad market performance to remain flattish, with mild directional movement as investors rebalance portfolios primarily for taking profits, in anticipation of stronger directional fundamentals in the macroeconomy.
“The Insurance index is expected to continue to attract investors that sought low priced stocks with appreciable fundamentals, amidst profit taking activities mostly in high cap. stocks.
“Huge capital outlay, is affecting the outlook of the revenue earning capacity of Industrial sector stocks primarily due to the inflationary economy.
“Half year results for ACCESSCORP that returned a 53.63% growth in Net operating profit for the period and a proposed dividend of N0.30, amongst others, is expected to be drive banking sector performance for the week, which could justify momentum in the broad market index”, the Bancorp Securities’ experts added.
