Stock Recommendations for the Week (21/09/2020 – 25/09/2020)

Stock Recommendations for the Week
Photo by Ishant Mishra on Unsplash

Last week, investors wealth on the local bourse appreciated by ₦10.4 billion following bargain hunting on medium and large-cap Industrial goods and Consumer goods stocks.

As a result, the overall market performance indices, the NSE-ASI and the Market Capitalization value both gained 0.10% week-on-week to close at 25,572.57 index points and ₦13.36 trillion respectively, compared to 25,591.95 index points and ₦13.35 trillion in the preceding week.

Stock recommendation brandspurng
Source: NSE, GTI Research

The uptrend was impacted by gains recorded in medium and large capitalized stocks, amongst which are; WAPIC (+12.12%), NEIMETH (+9.55%), CAP (+8.57%), NB (+2.31%), VITAFOAM (+1.93%), FLOURMILLS (+1.54%), GUARANTY (+1.40%), DANGCEM (+0.75%) and ARDOVA (+0.44%).

Outlook for the week ending September 25th 2020

Despite the overall positive performance of the market last week, we expect to see profit-taking on some recently appreciated stocks this week, especially in the first two trading sessions. This we believe will be driven by a weak macroeconomic outlook in the short-to-medium term, and the unlikelihood of the CBN to reduce the MPR during its meeting this week.

Hence, we see sell pressure taking an edge for the week.

Stock recommendation brandspurng1