Investment researchers at Bancorp Securities Limited, a leading investment research and consulting firm, have projected that trading on the Nigerian Exchange (NGX) this week would be bullish as Banking and Service sectors stocks attract investors’ interest.
However, the experts in the firm’s ‘Weekly Stock Recommendation: Feb 19- Feb 23’ circulated to our correspondent noted that the Nigerian Bureau of Statistics (NBS) recently reported that Nigeria’s capital importation grew by 66.27% in Q4 2023, to USD1,088.48 million compared with the USD654.65 million imported in Q3 2023.
They listed the key highlights from the statistics agency’s report as including the manufacturing sector accounting for 41.35% of total foreign investments, trailed by the 26.03% routed through the banking sector amongst others.
According to them, these amongst others are pointers of the efficacy fiscal and monetary policy initiatives particularly surrounding the foreign exchange volatility, which depreciated further to NGN1,537.96
Specifically, on the Nigerian Exchange trading outlook for this week, the Bancorp Securities’ analysts predicted: “In this current week, we expect to see a bullish run characterizing banking stocks, alongside positive investor sentiments on fundamentally strong services sector stocks.
“The upward momentum on Industrial Goods stocks is expected to slow, amidst mild profit taking activities. Insurance sector stocks are expected to return positive sentiments, save for stronger directional news through the week”, they added.
The experts recalled that last week the Nigerian stock market gained 3.79% w/w closing at 105,722.78 points, to lever up its YTD performance to 41.39% with the Financial Services sector accounting for 72.27% of the total volume traded through the week.
However, they noted that albeit trade parameters declined viz a viz volume, value and deals traded, that declined by 37.06%, 23.74% and 22.62% respectively on a w/w basis.
The experts attributed the subjective uptrend to the 33.30% premium on price of GEREGU, BUAFOODS bullish momentum, the niche of TRANSCORP in recent weeks, among other factors.
