….Say US Election Outcome Will Impact On Nigeria’s Economy
Investment analysts at Bancorp Securities Limited, a leading investment research and consulting services firm in Nigeria, have predicted that trading in the Nigerian equities market would exhibit cautious trading, influenced by global economic signals.
The experts, in the firm’s ‘Weekly Stock Recommendation for Nov 4 to Nov 8, 2024’ circulated to our correspondent on Monday, pointed out that key support levels around 96,500 points in the local bourse may be tested, while resistance near 100,000 points will be monitored closely.
They maintained that despite a slight preference for advancers (market breadth at 0.89), investor caution would be warranted given the potential for volatility in response to U.S. economic developments.
According to the researchers, key sectors to watch include oil and gas, which may show resilience, while banking remains stable amid liquidity concerns.
Meanwhile, they also predicted that the incoming U.S. administration’s policies would likely influence key Nigerian sectors, including the Oil and Gas as global oil prices are expected to remain stable due to geopolitical tensions, benefiting companies like SEPLAT and CONOIL.
Also the experts projected that with leading banks like GTCO and ZENITHBANK showing resilience, interest may persist despite potential liquidity tightening from U.S. rate hikes.
In addition, they anticipated that as regards Consumer Goods and Industrial stocks, the current inflation and foreign exchange volatility may pressure consumer spending, leading to marginal declines in their share prices.
Similarly, the experts projected that large-cap stocks in the industrial sector could also face selling pressures due to heightened sensitivity to interest rates.
