GTI Top-5 Stock Picks for 11-12-2017

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Market Review for week ended December 8th, 2017

Despite some unhealthy political intrigues in recent time, Nigerian investment environment continues to witness positive outlook as investors (both local and foreign) priced in the following; low valuation of a basket of stocks, improved FX window, improved ease of doing business, improved PMI reading, positive Q3 GDP data amongst others. These have bolstered December’s early rally seen in the equity market space as investors prepare for Yuletide season.

Another indicative aspect of the scenario as painted above is the existing lower yields on short and long dated securities (T-bills and bonds), pushing portfolio and fund managers to the allure of equity market.

In the light of the above, the equity market extended upward rally to the third week, ending December 8th (reviewed week) in a row. With exception of Friday, when marginal profit was recouped, the market reacted to all of the above listed positives from Monday through Thursday with a growth of 4.19%, thereby, pushing year-to-date (Ytd) returns to 47.1%. As it stands today, the Nigerian equity market is third most productive global market in terms of value creation or return to investors’ purse, coming behind Mongolia (+85.06%) and Argentina (+58.66%)… 

Outlook for the Week Ending December 15th, 2017

 This week, we expect a level of profit taking to dictate activity on the floor of The Exchange considering that we have witnessed a consecutive three weeks of strong upward rally. This will give a number of portfolio managers, as well as traders an ample time to re-assess and re-balance their portfolio holdings ahead of Yuletide season…

 

Kindly click on this link to download the full GTI Top-5 Stock Picks for 11-12-2017.

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