NIGERIA | Stocks Pick | 27-Mar-2018 | Elixir Research


27 Mar NIGERIA | Stocks Pick | 27-Mar-2018 | Elixir Research

Dear Valued Investor,

An interesting development in the out-gone week was the Senate confirmation of the appointment of two Deputy Central Bank Governors and three members of the Monetary Policy Committee (MPC). This clears the ground for the MPC to hold its first meeting this year, scheduled for April 3-4. While the economic fundamentals suggest there is scope for a rate cut, we hold the view that the Committee will maintain status quo.

For equities trading, there was a sell-off in the week as traders continued to book profit on the strength of the market. Also, the market was depressed by the industrial index which lost 2.84% w/w, (pushed lower by WAPCO (-5.66% w/w) and DANGCEM (-3.41% w/w)). That said, the banking index recovered at week close, gaining 3.31% w/w, helping to cut the benchmark index loss to 1.11% w/w (vs. 2.85% w/w upper week) to finish at 41,472.10 points.

This week, the trading sentiment is expected to generally improve with the banking sector enjoying a significant share of the improved momentum despite a four-day trading week. The focus is clearly on the April 2nd and 3rd MPC meeting. In line with our recommendation dashboard, stocks to watch include ACCESS, DANGSUGAR, WAPCO, and ZENITHBANK.


Warm Regards,