Investment researchers at Bancorp Securities Limited, a leading investment research and stockbroking services firm in Nigeria, have projected moderate recovery in Nigerian equities market this week after bearish performance of traded stocks in recent weeks.
The experts, in the firm’s ‘Weekly Stock Recommendation 9th-13th November 2026’ circulated to our correspondent on Monday, however, pointed out that they did not interpret the erosion of the 2-13% correction last week as evidence of a market-wide valuation opportunity.
Specifically, they hinged their forecast on their expectation of rebound in some large-cap stocks and the still encouraging benchmark yield year to date (YTD), and attractive fixed income yields, among other factors.
The experts predicted: “We expect a modest recovery in Nigerian equities in the coming week, following the 2.13% correction that erased much of the preceding week’s rally. However, we do not interpret the decline as evidence of a market-wide valuation opportunity. With the benchmark still up 59.93% YTD, fixed-income yields remaining attractive and market breadth deteriorating, the conditions for a sustained rally remain weak.
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“We expect any rebound to be concentrated in selected large-cap stocks following recent price adjustments, while Industrial Goods and Oil & Gas remain exposed to further profit-taking. Although historical November returns have been mixed in pre-election years, we see little evidence that seasonality will override prevailing market fundamentals. Overall, we anticipate a limited recovery rather than a sustained upward trend”, the analysts added.
Reflecting on the macroeconomic situation and performance of the local bourse last week, the researchers recalled that during the week Nigeria’s macroeconomic indices were characterised by improving business activity, continued liquidity absorption by the Central Bank of Nigeria (CBN) and modest depreciation of the naira.
According to the experts, the CBN’s October composite Purchasing Managers’ Index (PMI) increased to 53.2 points, while the Bank allotted N3.46 trillion through OMO and Treasury Bills auctions while the naira weakened by 0.22% to N1,349.00/US$, reflecting continued sensitivity to foreign exchange liquidity.
Also, they noted that the Nigerian equities market commenced November on a negative note, as the NGX All-Share Index declined by 2.13% week-on-week, reversing much of the preceding week’s 2.86% recovery to settle at 248,877.22 points.
Consequently, the analysts reported that the market’s year-to-date return moderated to 59.93%, while market capitalisation declined by N3.52 trillion to N161.59 trillion, noting that the decline s broad-based, with all five major sector indices recording losses, particularly Industrial Goods (-4.35%) and Oil & Gas (-3.72%), reflecting renewed selling pressure across the market.
