Weekly Stock Recommendation and Corporate Benefits Trigger – November 16th 2020

Strong buying pressure dominated the Nigerian bourse throughout last week, pushing the All-Share Index up by 12.97% WoW to 35,037.46pts. The bourse gained a record 6.23% on Thursday alone after trading momentum triggered a market-wide circuit breaker
that lasted about 30 minutes. Year to Date return currently stands at 30.53%.

Gains were recorded across all sectoral indices led by the NSEIND (+16.97%) and NSEBNK10 (+14.37%). OANDO led the gainers’ chart after advancing 48.15% WoW, while IKEJAHOTEL shed 9.91% to emerge as the biggest loser last week. The equities market continues to benefit from robust system liquidity and negative real returns in the fixed income market.

While we anticipate a healthy mix of profit taking (which kicked in last Friday) and bargain hunting activities in the market this
week, we expect the latter to have the upper hand, bringing the market to a positive close. The high levels of system liquidity and depressed fixed income yields leave investors with little option, but to continue to seek alpha yields in the equities market.

Also, we do not rule out positive investor sentiments on Tier-1 banking tickers ahead of a possible release of third quarter (Q3:2020) earnings this week. Ultimately, we expect that the market would close positive this week.

Click on the link below to access the full reports:


Weekly Stock Recommendation – November 16th 2020


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