Stock Recommendation for this Week (November 6)
The Nigerian Equities market commenced the month on a positive note, as the index inched up by 1.31 percent WoW, pushing the year-to-date return to 37.45 percent.
Market breadth stood at 1.30x, as 39 stocks recorded advancement in their share prices, while 30 declined.
UPL outperformed other stocks, as the ticker advanced by 26.34 percent, to close at N2.59k. On the other hand, AIRSERVICE topped the list of laggards, as the ticker shed 18.30 percent of its value to close at a price of N6.43k.
While there were notable sell pressures on some large cap tickers in the consumer goods sector, the All-Share index advanced as a result of bullish sentiments on some stocks in the industrial goods and banking space.
As envisaged, positive sentiments dominated the market as investors’ took position on largely capitalized stocks that shed significant value in the previous week.
In the coming week, we expect further sell pressures on some heavily weighted stocks in the consumer goods space, as well as some stocks in the banking and industrial goods space which appreciated in the previous week.
Overall, we expect a reversal in the current bullish market mood as investors sell down on some stocks that have recorded significant gains. Hence, we anticipate the market to close down week-on-week.