Bancorp Securities Limited, one of Nigeria’s investment market consulting firm, has predicted that it expects that the bullish trend that persisted in the equities market at the close of trading last Friday would be sustained this week, although on a less aggressive note.
The firm’s researchers hinged the forecast on the fact that despite the global inflationary trends and uncertainties affecting the global capital market, the NGX All-Share Index crossed 50,000 points last week, the highest point since August 2008.
In the firm’s Weekly Stock Recommendations for this week, the analysts recalled that at the close of trading on Friday, the index rose 262bps within the week. tossing the index to close at 50,937.01 points, while YTD return and market capitalization closed at 19.24% and N27.46 trillion, respectively.
Bancorp Securities further noted that in the week under review, the Consumer goods, Industrial and banking stocks were investors favourite, surging +7.25%, +3.22% and +0.26% respectively, all recorded positive momentum while the Insurance indices (-1.98%) and Oil and Gas (-1.10%) closed on a negative note.
It noted that the leading the gainers chart are CHAMPION (+32.5% WoW), INTBREW (+32.4% WoW) and CADBURY (+32.2% WoW), while ABCTRANS (-26.7% WoW), OANDO (-11.7% Wow), and MANSARD (-9.8% Wow), led the laggards.
The analysts reported that similarly, volume and value traded declined by 80.51% and 60.11% w/w, respectively and that market breadth closed positive at 1.7x, as we recorded 48 advancers as against 29 decliners, this shows that the Investment sentiment was positive.
The analysts predicted: “We expect the bullish bias to persist this week, although on a less aggressive note.”
While recommending GTCO, Zenith and UBA stocks as strong buy in the current week, it hinged its recommendations on Zenith stock on operating performance resiliency of the company.
It reported on the Zenith stock: “The Q1’22 performance was recently released, indicating operating performance resiliency. We noticed that strong growth in interest and non-interest income sources fueled rise in gross earnings and profits.
“We expect loan growth to boost interest revenue while non-interest income remains stable”, Bancorp Securities added.