As investors are bound to be exploring opportunities for best returns on their investments this week in the Nigerian Exchange Limited (NGX), analysts at Proshare Nigeria Limited, a leading investment research and consulting firm, have projected that the local bourse would sustain its bullish momentum, thereby holding good potentials for returns for investors.
The analysts, in the firm’s ‘Weekly Stock Recommendations: August 7 – August 11, 2023’ circulated to our correspondent on Monday hinged their forecasts on the current domestic and foreign policies of the Federal Government which will characterize investment activities this week.
Specifically, the experts pointed out that the events that would shape this week’s trading activities include, but are not limited to the half year Earnings reports from more listed companies, to ascertain their performances and outlook in the current fiscal dispensation.
Others are additional information on ECOWAS’ standing as per the coup in the Niger Republic, which by extension will have downside impacts on the Nigerian domestic economy and the outcome from the Nigerian treasury bills (NTB) auction which is scheduled for August 9, 2023.
The analysts projected “The Nigerian bourse is expected to sustain the bullish predominance, amidst an increased flow of money supply as reported by the Apex Bank. The Financial sector is expected to be in the green zone, as euphoria toward dividend declaration is expected to keep up investors’ interest in the sector.
“Noteworthy to mention is the 2.27% returns on the Consumer Goods Index in the past week. Although primarily driven by returns in DANGSUGAR and NASCON, the interests in NB, and CADBURY, amongst others may be an indication that the stock is at a resistance level, following the loss consideration”, the Bancorp Securities’ experts added.
Despite their prediction that trading at the NGX would be bullish, they, however, did not recommend any stock for buy but advised investors to hold investment decisions on some blue chip stocks, including BUA CEMENT, MTNN and NIGERIAN BREWERIES
While they stated that their recommendation on MTNN “was informed by the recently approved payment platform licensed we expect the stock might improve going forward hence our HOLD rating”, the analysts added on NIGERIAN BREWERIES, however, that they expected that “once macroeconomic environment is stabilized enough as it relates to inflation and foreign exchange, this stock is low enough for a good entry point, hence our BUY recommendation.”
