Investment experts at Bancorp Securities Limited, a leading investment research and consulting firm in Nigeria, have projected that the Nigerian Exchange (NGX) outlook would be mildly bearish due to profit taking in high performing sectors ahead of year end portfolio rebalancing, particularly in high-return stocks, ahead of year-end portfolio rebalancing.
The analysts, in the firm’s ‘Weekly Stock Recommendation: Dec 09 – Dec Dec 13 2024’ Note circulated to our correspondent, urged investors to be watchful of profit-taking during the week’s trading sessions, especially in outperforming sectors like industrial goods and oil & gas.
Also, they predicted that Banking and Insurance sectors may sustain gains due to strong fundamentals and investor optimism.
On macroeconomic developments in the country, the analysts believed that fiscal reforms and exchange rate policies could impact market momentum.
Based on the above projections, the experts advised investors to “adopt a balanced strategy, focusing on value-driven opportunities in resilient sectors like banking and industrial goods, while exercising caution in overvalued segments.
“The oil sector remains attractive for medium-term plays given ongoing stability and sectoral reforms”, they added.
