Weekly Stock Recommendation

WHAT TO EXPECT THIS WEEK:
In line with our expectations, the NSEASI waned last week on the back of investors’ reactions to the Central Bank of Nigeria’s (CBN) directive barring banks with huge bad loans from paying dividends amidst other negative investor sentiments. We expect more cautious level of trading on the part of investors in the week, as we set fully into the earnings period.
Barring any negative news inflow, we anticipate a fair level of bargain hunting to be sustained on banking stocks which are not expected to be largely affected by the directive, as well as key dividend paying stocks in other sectors of the bourse.

We still recommend that investors should focus their interest in stocks with a history of positive earnings growth and dividend payments with attractive yields.