Economic and investment researchers at Bancorp Securities Limited, a leading investment research and stockbroking services provider in Nigeria, have projected that trading in the nation’s equities market remain selective this week as investors reassess positions after three consecutive weeks of correction.
The experts’ forecast on the outlook of the market was contained in the ‘Weekly Stock Recommendation: 6th July-10th July 2026’ note shared on Monday with our correspondent via electronic mail.
According to them, the corrections over the past weeks have helped in improving the local bourse’s valuations and supporting selective bargain hunting by investors.
The experts predicted: “We expect the equities market to remain selective this week as investors reassess positions after three consecutive weeks of correction.
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“The pullback has improved valuations, particularly in fundamentally strong Banking stocks, supporting selective bargain hunting, while activity in Consumer Goods, Industrial Goods, Insurance and Oil & Gas is expected to remain largely driven by stock-specific opportunities and portfolio rebalancing”, they added.
Reflecting on the market performance last week, the firm’s analysts noted that the equities market extended its corrective trend during the week as broad-based declines across all major sectoral indices reflected cautious investor positioning following the strong first-half rally.
They reported that unlike the previous week, when buying interest returned to selected Banking counters, market activity last week reflected reduced conviction as investors continued to rebalance portfolios while awaiting fresh macroeconomic and corporate catalysts.
Consequently, the NGX All-Share Index declined by 1.21% week-on-week to close at 229,240.34 points, while market capitalisation fell by a similar margin to N147.10 trillion while market activity was mixed as trading volume increased by 13.22% to 3.82 billion shares.
Similarly, transaction value declined by 26.64% to N154.39 billion and total deals fell by 28.64% to 258,563 as divergence between higher trading volume and lower transaction value suggests that trading activity remained concentrated in relatively lower-priced stocks, while participation across higher-value transactions moderated during the week.
Having critically appraised the prevailing micro and macroeconomic indices in the broader economy, the experts further anticipated that overall, the equities market direction this week “is expected to be driven by bargain hunting in fundamentally strong counters, portfolio rebalancing and company-specific opportunities rather than broad-based buying across the market.”
