Investment experts at Bancorp Securities Limited, a leading stockbroking and investment advisory services firm in Nigeria, have projected that this week, trading sentiment in the nation’s capital market would remain cautiously positive due to investors’ strong hunting for blue chip stocks.
The experts, in the projections captured in the firm’s ‘Weekly Stock Recommendation 15th-19th June 2026’ Advisory Note circulated to our correspondent on Monday, hinged their forecast on the recent correction and continued rotation toward fundamentally strong stocks in the Nigerian Exchange.
Specifically, they anticipated that this week investor attention would likely be focused on the banking sector following the CBN’s proposed HoldCo guidelines, with the market assessing potential implications for capital flexibility, subsidiary structures, and long-term returns
The analysts clarified: “We expect market sentiment to remain cautiously positive, supported by bargain hunting in attractively valued companies following the recent correction and continued rotation toward fundamentally strong stocks. Investor attention is likely to center on the banking sector following the CBN’s proposed HoldCo guidelines, with the market assessing potential implications for capital flexibility, subsidiary structures, and long-term returns.”
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They recalled that last week, the equities market sentiment improved as market breadth strengthened to 0.98x from 0.73x recorded in the previous week as 40 equities advanced against 53 decliners compared to 23 gainers and 65 losers recorded during the preceding week, indicating that the broad-based selling pressure witnessed in the prior week moderated considerably.
In addition, they noted that market internals also improved during the week with weekly Up/Down ratio increasing to 0.80 from 0.35 recorded in the previous week, reflecting a notable recovery in buying activity across the market.
Similarly, the firm’s researchers reported that the market TRIN declined to 1.35 from 1.86 in the preceding week, suggesting that selling pressure moderated and market conditions became more balanced relative to the sharp correction in the preceding week.
They acknowledged that nonetheless, both market breadth (0.98x) and TRIN (1.35) remained below levels typically associated with strong broad-based bullish participation, indicating that investor activity continued to be concentrated around selected Banking, Insurance, and Oil & Gas sector.
On the equities market outlook this week, the researchers maintained that they expected the market to remain constructive but selective as investors continue to reposition following the recent correction across several sectors.
According to them, while the recovery recorded during the past week suggests that bargain hunting has emerged across selected counters, market participation remains concentrated around fundamentally supported names.
They stated: “Banking stocks could continue to attract interest following the recent pullback, supported by improved valuation levels and continued investor focus on the CBN’s proposed HoldCo guidelines. Insurance and Oil & Gas counters may also witness selective buying interest, while Consumer Goods and Industrial Goods stocks could remain constrained by persistent cost pressures and weaker demand conditions.
“Although the May inflation report will be closely monitored by investors, we believe market direction is likely to remain driven primarily by valuation opportunities, sector-specific developments, and stock selection.
“Consequently, investor activity is expected to remain concentrated around fundamentally strong counters with attractive valuations and earnings visibility”, the experts added.
