Investment analysts and economists at Bancorp Securities Limited, a leading investment research firm in Nigeria, on Monday projected mixed sentiment in the nation’s equities market this week, noting however, that earnings expectations would continue to provide a catalyst for the market’s positive performance
The experts in the firm’s ‘Weekly Stock Recommendations Jan 30 – Feb 03, 2023’ also recommended some stocks as strong buy for investors given the impressive financial and other performance assessment indices of the listed companies in recent times.
The analysts projected: “We envisage mixed sentiment this week, however, earnings expectations would continue to provide a catalyst for positive performance.”
Clarifying the firm’s projection of the equities market performance, especially on the stocks considered very promising in terms of return potential, the analysts listed ZENITH, GTCO, WAPCO and MTNN as worthy of investors’ stake this week.
For instance on WAPCO, the experts stated that the firm’s recommendation of the stock as strong buy was due to its recent financial results which “underscore the company’s resilience as it remains committed to maximize volume opportunities across the African markets driven by sustained product demand.
“Accordingly, our fair value for the stock is N33.00, based on our fair value, the stock offers a 34.15% expected return and 8.13% dividend yield”, the analysts added.
The experts recalled that last week, transactions in the equities market started on a downside with mixed signals but that the deals ultimately notched higher by 0.12% to 52,657.88 points, despite the surprising decision of the Monetary Policy Committee to increase the Monetary Policy Rate to 17.50%.
In addition, they noted that the market capitalization also grew by 0.12% w/w to N28.68 trillion while the ASI year-to-date return stood at 2.74% while the trading activity level was downbeat, as total volume decreased by 39.52% to 756.76 million and total traded value down 12.84% to N13.65 billion.
