Nigerian Stock Recommendation For Today by MeristemNG.
Bearish sentiment dominated the equities market last week as the All share Index shed 0.57% to settle at 39,261.01pts. Consequently, Year-to-date losses worsened further to -2.51%.
Buying pressure on insurance tickers sustained from the previous week as only the NGXINS Index closed up by +0.79%, remaining the week’s best performing index while all other indices closed down.
TRANSCOHOT topped the gainer’s chart, with prices up by 10.00%WoW while OANDO shed weight by 15.21%WoW, to become
the top loser for the week.
ACCESSBANK released its H1:2021 result during the week reporting a 13.58%YoY and 42.44%YoY increase in Gross earnings and profit after tax, respectively. An interim dividend of GNG0.30k per share was also announced by the bank.
Although some profit taking activities occurred in the market the previous week, we think significant tailroom still exists on some heavyweight stocks.
Thus, we expect bearish sentiment to persist across the equities market this week.
However, we do not rule out the possibility of buying pressure on some tickers in the banking sector which currently have significant upside potential, in addition to the prospect for interim dividends. MeristemNG.