Analysts Anticipate Cautious Stocks Trading Post-election Week

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Analysts Anticipate Cautious Stocks Trading Post-election Week Business

“Overall, we advise investors to seek trading opportunities in only fundamentally sound stocks as the weak macro story remains a significant headwind for corporate earnings.”

“Also, the recent uptick in rates seen in the fixed income market at the end of the last treasury bills auction in the midst of corporate earnings expectation, portfolio rebalancing and elections jittery are expected to drive sentiments in the market. However, we advise investors to trade companies with sound fundamentals and, as such, should take advantage of price corrections in line with domestic and global trends,” they said.The domestic equities market closed last week positive.

Meanwhile, positive price movement was seen in the NGX Consumer Goods index with an increase of 6.30 per cent. NGX Oil & Gas index rose by 2.73 per cent, NGX Banking index up by 2.21 pe cent and NGX Industrial Goods index gained by 0.34 per cent through the week as investors posed their expectations for the early filers from these sectors to start hitting the market with their 2022 full-year scorecards even as the presidential and national assembly elections draw closer.

On the other side, Capital Hotel led the decliners table by 9.42 per cent to close at N2.50k, per share. Vitafoam Nigeria followed with a loss of 7.18 per cent to close at N19.40k, while Neimeth International Pharmaceuticals declined by 6.45 per cent to close at N1.45k per share.

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