What's in store for stocks in the coming week?

The Nigerian Stock Exchange (NSE) All-Share Index recorded a significant appreciation of 7.9% last week, marking a robust performance for the market. Ayodeji Ebo, Managing Director of Afrinvest Securities, attributed this positive momentum to renewed interest from foreign portfolio investors and institutional investors in Nigeria. The launch of the investors and exporters window by the Central Bank of Nigeria (CBN) has played a crucial role in attracting investments to the country's stock market. Ebo highlighted the impressive 3.49% increase in the All-Share Index as of Friday, emphasizing the strong performance seen throughout the week. He noted that investor confidence in Nigeria has been on the rise over the past 28 days, with significant inflows of around $1.9 billion recorded through the investors and exporters window. One notable trend from the previous week was the outperformance of all sector indices, except for the oil and gas index. Ebo explained that the underperformance of the oil and gas sector could be attributed to profit-taking activities by investors. Despite this, he expressed optimism for a potential rebound, particularly in companies like CEPLAT, which operate within the upstream sector. The top gainer in the market last week was Nestle, leading the gainers' table with a 5% increase in value. Ebo pointed out that foreign investors have shown interest in stocks like Nestle due to their consistent performance and improved access to foreign exchange (FX) supply. He highlighted the resolved FX challenges faced by companies like Nestle, leading to minimized FX losses and increased investor confidence. Looking ahead to the upcoming week, Ebo shared his stock picks, focusing on opportunities in banks like Diamond Bank and Sterling Bank, as well as sectors like Lafarge Africa and Dangote Cement. He emphasized the potential for growth in these companies and advised investors to consider taking positions in these stocks. In conclusion, Ebo encouraged investors to approach the market with confidence and to focus on delivering value in their investment decisions. As Nigeria's stock market continues to show positive momentum, both local and foreign investors are expected to take advantage of the opportunities presented in the market.