By Peter Egwuatu

Financial analysts have forecast a mix of profit taking and bargain hunting in the Nigerian equities market this week following a bearish market recorded last week which led to the decrease in the twin performance indicators (All Share Index and market capitalisation) of the Nigerian Stock Exchange, NSE.

Specifically, analysts from Vetiva Capital Management stated that they expect the market to follow similar trend this week with mixed sentiments by investors.

They stated: “We note that market sentiment remained tepid all week (last week), indicated by the consistently negative market breadth. We expect this sentiment to filter into this week and anticipate a negative week open.”

While commenting on stock to watch, the analysts noted that Zenith Bank Plc shed 7 per cent in a bearish streak over the past seven sessions. “The stock trades at  ¦ 22.10 below consensus target price of  ¦ 27.60. The stock has returned 50 per cent Year to Date, YtD” they added.

In similar vein, analysts at Cowry Assets Management said “This week, we expect a mix of profit taking and bargain hunting activities.”

They further recommended five equities for a buy. These are Access Bank Plc, CAP Plc, Dangote Cement Plc, Nestle Nigeria Plc and Okomu Oil Plc. Access Bank with a current market price of N9.90 per share has been predicted to close at N12.06 per share at the end of 2017; Cap Plc with a current price of N33.00 per share has been predicted to close at N 43.00 per share at the end of 2017; Dangote Cement with a current price of N205.80 per share has been predicted to close at N342.42 per share at the end of 2017; Nestle with a current price of N1,205.00 per share has been predicted to close at N1,596.11 per share, and Okomu Oil   at a market price of N 66.50 per share is predicted to close at N 94.12 per share at the end of 2017.

Market closed bearish

Meanwhile, a review of the market performance last week showed that the NSE All share index and market capitalisation dropped by 235 bps and 263 bps to close at   35,005.57 points and N12.07 trillion respectively. On a year-to date basis, the NSE ASI and market capitalization increased by 3,026 bps and 3,051bps respectively.

The NSE Banking Index, the NSE Insurance Index, the NSE Consumer goods Index and the NSE Industrial Index all closed in negative territory, losing 230 bps, 33 bps, 252 bps and 439 bps to close at 424.92points, 136.95 points, 941.55 points and 1,942.02 points respectively.

Twenty-three (23) equities appreciated in price during the week under review, lower than twenty-eight (28) of the penultimate week. Forty-five (45) equities depreciated in price, higher than thirty-eight (38) equities of   the penultimate   week, while one hundred and four (104) equities remained unchanged lower than one   hundred and five (105) equities recorded in the penultimate week.

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