The Senate has just passed a bill for the government. It moved to amend the Central Bank of Nigeria Act to increase the short-term loan “Ways and Means” limit from 5% to 10% of last year's revenue. With this boost, the government can tackle important stuff without breaking a sweat, enabling the government to tackle pressing needs with greater financial agility.
Additionally, the African Development Bank Group has greenlit a substantial loan of USD 500 million to kickstart Nigeria's Economic Governance and Energy Transition Support Programme (EGET-SP). This bold initiative is set to revamp the nation's electricity infrastructure and fast-track the shift towards cleaner energy sources. These significant strides in energy transformation could ignite a surge of optimism in the equities market this week, promising an exciting boost for investors and stakeholders alike.
Top Stocks for your Portfolio this week
The equities market remained in the red last week, declining by 0.43%, primarily due to the drag from UCAP (price adjustment due to the 2-for-1 stock split) and MECURE. This week, we expect increased buying activity across select tickers. Here are our top picks to help you strategically position yourself for potential gains!
ZenithBank: Zenith Bank Group (ZENITHBANK), with the highest Tier-1 capital, holds a strong competitive edge in the Nigerian banking sector. The bank's growth strategy focuses on organic expansion across three African countries and a strategic shift towards retail banking, which boosts asset growth and lowers funding costs. With the stock price down to NGN36.00 last week, now could be an excellent time to consider buying in.
TRANSCORP: Transnational Corporation of Nigeria Plc (Transcorp), a diversified conglomerate, is leveraging strategic investments in power, hospitality, and oil & gas to drive sustainable growth. Its broad portfolio provides a significant competitive advantage in the Nigerian market. However, the recent formation of a hammer candlestick after the price drop suggests potential seller exhaustion, with bulls driving the price notably higher from its weekly low.
With the current price still at NGN11.20, it’s still a great time to jump on board.
FCMB: First City Monument Bank (FCMB) a financial service provider which drive value by market-proven solution services to its customers. The company aims to provide superior strategic flexibility and diversification opportunities. This approach positions FCMB to thrive despite the intensifying competition in the industry. Much more, we expect the sentiment on the bank to remain positive on the backdrop of robust performance in H1:2024 and its capital raise exercise.
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