Investment experts at Bancorp Securities Limited, one of Nigeria’s leading investment research and consulting firms, have projected that trading on the Nigerian Exchange this week would be hallmarked by positive sentiments amid profit-taking activities to characterize trading activities in the current week.
The analysts, in the firm’s ‘Weekly Stock Recommendation: Aug 28 –Sept 01 2023’ report hinged the forecast on some of the just published data on unemployment and inflation rates, adding that a major implication of nominally reduced inflation numbers includes a pointer to reduced government spending, and basis risk of misstating underemployment as ‘employment’.
According to the researchers, this is important as some economies classify underemployment as unemployment, and can skew apex policies in this regard.
Noting that the Agriculture and Industrial sector performance returned positive output as reported in the Q2 2023, GDP numbers, the Oil and Gas sector continues to decline in a similar wise.
The experts further expressed concern that, in an entrepreneurial-driven economy, the Services sector continued to drive economic output of the country.
Forecasting the outlook of the capital market this week, the Bancorp Securities’ analysts stated: “We expect the Oil and Gas sector stocks to trade flattish in the current week, as investors continue to take their profits and rebalance their investment portfolios.
“The mild returns on the Services Sector, stemming from the past week’s performance of ABCTRANS, are expected to flatten. Financial service stocks may gain soft upward momentum, as high-cap banking stocks may have touched a support threshold” they added.
While recommending TRANSCORP, NESTLE, UNILEVER, FIDELITY, UBA, WAPCO and a few other stocks for buy this week, they advised investors to hold investment decision on FLOURMILL, NASCON, NIGERIAN BREWERIES, UCAP ZENITHBANK, MTNN, BUACEMENT and a few others. Among their recommended stocks to sell were OKOMUOIL, PRESCO, CUSTODIAN, GTCO, FBNH, MANSARD and STANBIC.
