The NSE All-Share Index and Market Capitalization appreciated by 0.72% and 0.82% to close the week at 42,876.23 and N15.403 trillion respectively. Similarly, all other indices finished higher during the week with the exception of the NSE ASeM, NSE Banking and NSE Pension Indices that depreciated by 1.14%, 0.59% and 0.09% respectively.
Here are stocks that made investors good money last week with my analysis of their potential move:
Japaul Oil & Maritime Service Plc
The stock increased by 50% to close at 63k from N42k. This is not unconnected to the $350 million private equity injection (by Milos Global) into the oil and maritime company as the management seek to make it less reliant on the oil sector by diversifying into other revenue centres. The stock has suffered massive sell-off from the oil price dip and is now staging a comeback.
Let’s take a look at the chart for a potential move:
Technically, Japaul oil stock is bullish on all our four key trading signals but because of the sharp positive price increase so far, I would recommend you wait for a pullback from an imminent sell-off/profit takers, then buy the stock. As of this writing, the stock is currently on a full bid, no offer which means price may rise further this week.
Unity Bank Plc
The stock increased by 18.79% to close the week at N1.77 from N1.49. Just as we shared on Japaul Oil, Unity Bank stock may enjoy more patronage if the rumour of a potential buyout, which is driving the stock, turns out positive.
Technically, Unity stock had just reversed its previous downtrend after the news broke out but there isn’t a solid bullish signal on major tools except for the relative strength index.
Recommendation: Wait for a buy signal on all technical indicators.
NEM Insurance Co
This is one of my best insurance stock to watch this year. As investors sentiment turns positive after an impressive result, I am currently waiting for a buying opportunity after sell-off.
NEM insurance stock gained 35k to close the week at N2.25; a key driver of this stock is investors sentiment. The company grew its gross premium by 22%, profit before tax by 35.42%, and profit after tax by 35.47% in Q3 2017 which is better than the figures reported in 2016. I expect the company to post a better full-year result.
Technically, the stock has more upside potential and is fast approaching the level investors will sell off to take price as all indicators point to an overbought region.
Recommendation: Wait for sell-off after a full-year report and buy; insurance sectors will benefit from this year’s growth.
Cement Company of Northern Nigeria
This stock is also on my radar this year. I had already shared a full analysis of the company’s fundamental, go check it out here. CCNN share increased by 17.80% to reach N19,85, the company is already trading at an all-time as investors await 2017 financial report.
Technically, the stock has risen too high, all indicators already signal an overbought stock so expect the price to retreat shortly after the full year result is released expect the EPS beats expectations.
Recommendation: Wait for a major reversal before buying.