Investment experts at Bancorp Securities Limited have advised investors to be cautious about staking funds in equities as the bullish sentiments that characterized the release of financial results of listed entities over the past weeks may moderate this week.
The analysts, in the firm’s ‘Weekly Stock Recommendations: Sept 11 – Sept 15 2023’ circulated to our correspondent on Monday, noted that the robust fiscal policy of the Federal government in the last quarter continued to have far reaching impact on the Nigerian bourse.
They noted that last week’s affirmation of the government’s standing by the judicial arm was bound to give impetus to its stability in the near term.
According to the researchers, the NGXASI has been on threshold of decade peaks and the depth of bullish momentum is expected to remain shallow, at least driven by stronger fundamental news.
The experts cautioned: “This current week, we expect the NGXASI to return positive, as pivotal sectors and constituent companies continue to consolidate through various reforms to reposition itself threading in new macroeconomic realities.
“While we await the August inflation report for on Friday, September 15, 2023, there is a consensus on its upward projectile to exceed 25.01%. In the current week, we expect that the Oil and Gas index performance to be driven by the bullish run n OANDO, with a relatively slower momentum.
“Investors are continually advised to remain cautious as to the bullish run on stocks that appear to be over bought such as DANSUGAR, NASCON amongst others. More half year results are expected to be released to the public particularly on banking sector stocks and this may likely set the pace of the returns on its constituent stocks and by extension, the financial services sector”, the firm’s experts added.
The analysts recalled that NGXASI closed at 68,143.34 points to return 0.91% and 32.96% on a WTD and YTD basis respectively last week, noting that this performance on the broad index could be an indication of new frontiers created on the Nigerian bourse.
The analysts linked the local bourse’s performance last week majorly to performance of low cap stocks that attracted speculators interest in the course of the week, the bullish performance of banking stocks as well as the performance of OANDO after it announced its intent on acquiring the Nigerian Agip Oil Company Limited.
