Stock Recommendation for the Week (October 16, 2017)

By Meristem Research

The equities market closed the week on a positive note as the NSEASI gained 1.45% WOW, thereby settling the year to date return at 37.11%.

Forty-six (46) advancers and twenty-three decliners emerged, pegging the market breadth at 2.00x.

Top on the gainers’ chart was MANSARD, having recorded a gain of 25.50% WoW to settle at NGN2.51 while UPL performed the worst to close at NGN2.22 after shedding 13.64% WoW.

The positive sentiments seen in the market can be attributed to positive investor sentiments in expectation of 9 months 2017 financial results.

In the course of the week, we expect to see mixed sentiments i.e a flurry of both sell-downs and bargain buys.

The bargain hunting is expected to occur as a result of investors’ anticipation of price appreciations on stocks that have shed significantly in the past few weeks as well as those which are expected to post impressive 9M2017 scorecards.

We also do not rule out some profit taking by investors who would want to cash out on stocks that have recorded substantial gains.

By the close of the week, as we do not expect the sell pressures in the week to override bullish activities, we therefore project that the market will close in the green zone.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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