Researchers at Bancorp Securities Limited, one of Nigeria’s leading investment consulting advisory services providers, have forecasted a slowdown in the growth stocks’ activity in the nation’s equities market this week as risk-averse investors would consolidate their capital gain drives during the trading sessions.
The analysts, in the research firm’s ‘Weekly Stock Recommendation: Nov 13- Nov 17, 2023’ report sourced by our correspondent on Monday stated that this week, they anticipated an evenly spread price movement through the broad market, based on the recent high trading levels of the NGXASI, requiring very strong fundamental basis to move further up.
In view of the projected pricing trend of stocks in the market, the investment experts clarified: “Growth stocks activity on the bourse is expected to slow down, as an appreciable number of risk-averse investors may realize their capital gains, save for event driven and fundamentally strong stocks like JAPAULGOLD, which is likely to continue its bullish run, although at a slower pace due to enhancing liquidity and an anticipation of negotiated deals on the stock.
“The Financial services sector, is expected to retain its status for liquidity facilitation the bourse, whilst other sectors under our coverage is expected to return flattish save for stronger directional news”, the analysts added.
According to the investment researchers, a major highlight for the week will be the release of October 2023 inflation rate by the National Bureau of Statistics (NBS) scheduled for Wednesday this week.
On the general price level in the economy’s report, the firm’s experts stated that they anticipated a further spike in inflation numbers predicated upon the rising transportation costs, which would offset the gains from harvesting season as well as high levels of volatility in the foreign exchange (FX) market, which could further lead to proliferation of imported inflation and also inhibit the cost advantage of domestically produced goods and services, amongst others.
Meanwhile, they noted that in the interim, fiscal policy was advancing towards enhancing the activities in the solid minerals with an estimated NGN6.40 trillion generated between 2021 and 2021 as reported by the Nigeria Extractive Industries Transparency Initiative (NEITI).
