Investment researchers at Bancorp Securities Limited, a leading investment research firm in Nigeria, have predicted some modicum of positive outlook for Nigerian Exchange’s trading this week as macroeconomic indices continued to reflect positive sentiment in the nation’s economy.
The investment experts, in the firm’s ‘Weekly Stock Recommendation For Nov 27 –Dec 01 2023’ report noted that some of the key takeaways from the recently released Q3 2023 GDP report include the 2.54% growth recorded in the period precipitated by significant gains realized in the Oil sector.
Noting that growth remains in the negative region (-0.85%) when compared to the rate recorded in the base period, and the consistent performance of the Services, Industry and Agriculture segments of the economy, the analysts attributed the Q3 gains partly to security improvements in the country.
This is even as they recalled that in furtherance to creating a sustainable economic growth environment, the CBN in its recent outing, outlined its near-term plans to consolidate the growth realized in GDP so far in the macroeconomy.
According to the firm’s researchers, some of the key economic gains based on the National Bureau of Statistics’ (NBS’) GDP report for the quarter under review include interest rate reduction so as to stimulate the internal economy, enhanced transparency in foreign exchange policy making and harmonizing them with quasi-fiscal activities, and inflation targeting amongst others.
Given the latest report on the economy’s performance, the experts predicted that “in the current week, we expect an appreciable positive momentum on the bourse, in expectation of declining interest rates and improved bottom lines for issuers on the bourse.
“The Financial Services sector is expected to be consistent with piloting the activities on the bourse, whilst the Consumer goods sector is expected to attract some level of positive interests, across fundamentally strong stocks”, they added.