Investment Firm Asks Investors to Sell Wema, AIICO
Afrinvest Securities Limited have adjusted recommendation on Wema Bank Plc, AIICO Insurance downward today after the firm advised clients to reduce their exposures last week.
In an email sent to clients on Monday, the investment firm recommends portfolio adjustment in relation to three particular stocks. This sell down recommendation is coming ahead of dividend season.
The firm asked equity investors to let go of Wema Bank and AIICO insurance shares in their portfolio, and be neutral on Dangote Cement Plc.
Following a plan to raise N40 billion via right issue following its capital restructuring effort to reposition the bank, Wema Bank share price adjusted upward.
At weekend, Wema Bank share price had gained 18.1%. Also, the firm recommends that clients should take a neutral position on Dangote Cement shares, last week it had advised reduction of the share.
In its expectation for the week, the Afrinvest weekly sentiment indicator strengthened to 3.4x from 2.0x, according to the firm.
Consequent to this, it said in this week’s trading session, Afrinvest expects positive performance to be sustained as more investors take position ahead of the dividend season.
Last week, the AFR-ICT index led the gainers, up 4.7% week on week. Trailing, the Oil & Gas, Banking, Industrial Goods indices rose 2.7%, 0.8% and 0.3% respectively.
On the flip side, the Consumer Goods and Insurance indices recorded losses, down 0.9% week on week apiece.
Investment Firm Asks Investors to Sell Wema, AIICO
