Investment researchers at Bancorp Securities Limited, one of the leading investment research and consulting services firm, have predicted that the Nigerian equities market is expected to exhibit mixed performance amid cautious investor sentiment.
The experts, in the firm’s ‘Weekly Stock Recommendation For Dec 02- Dec 06, 2024’ circulated to BRTNews.ng on Monday, noted that recent gains had positioned the NGX All-Share Index (NGXASI) at 97,506.87 points (-32.9 basis points W/W), reflecting a YTD return of +30.40%.
Despite the strong performance, the researchers projected that, however, the market was expected to experience profit-taking from high-performing sectors like Consumer Goods and Industrials this week with the attendant mild corrections.
This is even as they due to the market’s policy sensitivity, the extended impact of the Central Bank of Nigeria (CBN) Monetary Policy Committee’s (MPC’s) potential rate hikes might dampen risk appetite.
According to the firm’s experts, this week bargain hunting in otherwise fundamentally strong stocks that are trading at support levels (MTN Nigeria, Dangote Cement) could also provide sporadic momentum during the trading sessions of the equities market.
The researchers projected: “Overall, the reforms position Nigeria’s economy for fiscal resilience and sustainable growth. Execution will be key to achieving the desired impact on equity markets and long-term economic competitiveness.”
