Investment researchers at Bancorp Securities Limited, a leading Nigerian investment research and consulting services providing company, have projected that tradings in the Nigerian Exchange (NGX) would remain positive this week based on the current micro and macroeconomic indices.
The experts, in the firm’s ‘Weekly Stock Recommendation for Jan 29 – Feb 02’ report circulated to our correspondent on Monday, projected that the upward momentum on the industrial goods sector was expected to reduce, as investors realize capital gains, save for stronger fundamentals.
They recalled that in a quasi-formal conference, the Central Bank of Nigeria (CBN), through its current leadership Dr. Olayemi Cardoso, reiterated the new and evolving modus operandi with which the apex bank intended to stabilize various macroeconomic mishaps bedeviling the country.
Specifically, they noted that in his address at the forum, the banker made some key points, which included but not limited to transparency in Foreign exchange policies and transactions, which he explained the status quo CBN policies were devoid of, which led to a “dislocation of monetary transmission mechanisms”, undermining the efficacy of monetary policies.
In addition, Cardoso was reported by Bancorp Securities’ analysts to have also assured MSME friendly policies, which would be geared to enhance small and medium scale business access to financing and consolidate the gains in private sector participation in nation building as well as improving financial inclusion and standardizing regulations around technology driven payment services sub sector.
On the Nigerian Exchange’s outlook, they predicted: “In this current week, we expect the Nigerian bourse to remain positive, although characterized with enhanced profit taking activities, and strategic asset re-allocations.
“We expect the banking sector stocks to stagnate around fundamentally strong stocks as await further enter earning releases for FY 2023. Momentum of Large capitalized stocks, that have characterized the recent market growth, is expected to slow, save for stronger fundamental news”, the investment experts added.
