July 12 (Lagos) - The local market saw a mix of bargain hunting and profit taking during the week as the index traded range bound in most of the sessions.
With the continued spread of the Corona virus pandemic across countries and its severe impact on major global and domestic indicators, we envisage a persistently pressured market in the meantime, despite the attractiveness of a number of fundamentally sound stocks hence, a cautious trading strategy is advised.
Stocks to Watch
Brewer
INTBREW trailed
LIVESTOCK (+980bps) as the second best performing stock for the day, rising 694bps to close the week at N 3.85. Investors took advantage of yesterday's significant decline (-886bps), taking position in the counter.
Just like other Brewers, the stock has been significantly pressured during the year, posting a YTD loss of -59.47% (
GUINNESS : -53.41% YTD; NB: -42.29% YTD).
As expected following the consecutive sessions of capital appreciation, the Banking sector saw a trend reversal on Friday, ending the session down by 68bps courtesy of profit taking in
UBA (-234bps),
GUARANTY (-132bps),
FBNH (-95bps) and
ZENITHBANK (-30bps).
The weakening Naira could also add to the pain once again as it is already trading near the 465 range in the parallel market.
reporting for easykobo.com on Sunday, July 12 2020 from Lagos, Nigeria
Source - analaysts at Vetiva Capital Management Ltd in Victoria Island, Lagos. All views, opinions and forecast expressed in above article (except the last line) are those of analysts at Vetiva Capital Management Ltd in Victoria Island, Lagos.