Nigerian Equity Market: Stock Recommendations for the Week (12/10/2020 – 16/10/2020)

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Positive Performance Returns In The Local Bourse, NGX ASI Gains 58bps
Positive Performance Returns In The Local Bourse, NGX ASI Gains 58bps

The Nigerian equity market recorded another positive week, as buying interests on bell weather stocks pushed the market further into the positive region, despite closing in the red territory in the last three successive trading days.

The NSE-ASI gained 5.3% w/w to close at 28,415.3 points. As such, the YTD returns came in at +5.9% and market capitalization gained N747.2bn to close at N14.9tn. In terms of activity, average volume and value traded surged by 63.9% and 67.4% to 628.0mn units and N7.1bn, respectively.

All sector indices under closed on the green with for the week the Banking sector (+10.6%) ahead of the pack. The Industrial goods (+2.8%), and Consumer goods (+1.9%) followed, thanks to price appreciation in ACCESS (+16.4%), FBHN (+19.2%), UBA (+8.8%), DANGCEM (+4.2%), INTBREW (+21.0%), and GUINNESS (+7.1%), respectively. Also, the Insurance (+1.6%) and Oil & Gas (+1.7%) sectors were not left out of the party, owing to LINKASSURE (+15.8%), MANSARD (2.1%), AIICO (+6.3%), TOTAL (+5.4%), and SEPLAT (+2.5%).

Outlook for the week ending October 16th 2020

Investor sentiment has also reflected the mood in the market as market breadth closed at 4.9X as 49 stocks gained, and 10 stocks declined w/w. For this week, we expect the monument to be sustained judging by the huge liquidity in the system coupled with fewer investment alternatives. However, we do not overrule the place of profit-taking.
Nigerian Equity Market brandspurng Stock Recommendations for the Week
SOURCE: United Capital Research