Market Last
Week (Our Observation)
- Last week, the local bourse recorded a negative
performance, with the All Share Index (ASI) decreasing 1.0% W-o-W to
27,525.81 points. Accordingly, market capitalisation fell N133.5bn to
N13.4tn while YTD loss weakened to -12.4%.
- Overall sector performance was bearish as 4 out of
6 indices under our coverage depreciated W-o-W. The Oil & Gas
index led the laggards, paring 10.8%. The Banking and Consumer Goods
indices trailed, declining 3.5% and 0.6% respectively while the
Industrial Goods index also lost 0.3%. On the flip side, the AFR-ICT
and Insurance indices were the lone gainers, up 1.3% and 1.2%
respectively.
- The top performing stocks for the week were JOHNHOLT
(+19.6%), CONTINSURE (+11.5%) and UNITYBANK
(+11.1%) while SEPLAT (-18.8%), UACPROP
(-17.8%) and INTBREW (-15.2%) led the
decliners.
Market This Week (Our Expectations)
- The Afrinvest Weekly Sentiment Indicator eased to
2.7 points from 4.2 points recorded in the previous week.
- Following last week's performance and weak investor
sentiment, we anticipate a bearish performance barring any positive
catalyst that would reverse the negative sentiment in the market.
Weekly Stock Watch for
Technical Traders
Market Analysis… NSE ASI
Resumes Bearish Stance
The NSE All Share Index returned to its bearish stance declining 1.0% to
print at 27,525.81 points. As has been the case recently, the Negative Directional
Movement Index (-DMI) still outstrips the Positive Directional Movement
Index (+DMI) and continues to display a super strong ADX (Average
Directional Movement Index), indicating the NSEASI's reluctance to rise to
glory. In the coming week, we expect the index to continue to wander within
the negative territory. But why are we pessimistic? All indicators strongly
suggest there are no possible triggers to herald a rebound in the near
term.
Our BUY
Recommendation
Last week, 2 out of our 5 top picks closed in the red while WAPCO (+1.8%)
emerged the lone gainer. Based on last week's observations, DANGCEM (ADX:
31.90; MFI: 3.28; %B: 10.02, CUTIX (ADX: 26.76; MFI:
41.22; %B: 63.06), WAPCO (ADX: 48.93; MFI:
50.10; %B: 92.31), OANDO (ADX: 26.34; MFI:
58.54; %B: 70.67) and WEMABANK (ADX: 28.17; MFI:
67.61; %B: 84.11) have strong prospects for fortune in the near term. These
stocks currently hover around the oversold region with respective +DMIs
bullying –DMIs with >25 ADX value, signifying a strong trend. Of these,
our hot pick is DANGCEM as it is set to
create room for profit - a strong uptrend from the oversold region.
Attention! Attention! Attention! The Nigerian market is currently not for
the timorous.
Our SELL
Recommendation
Previous week's observations
also suggest that UCAP (ADX: 38.56; MFI:
84.54; %B: 38.50), FBNH (ADX: 59.49; MFI: 82.45; %B: 32.93), PZ (ADX: 53.58; MFI: 65.48; %B: 46.75) and TOTAL (ADX: 83.71; MFI: 55.31; %B: 30.94) top our wish list
for investors yearning lean pockets. As it stands, these stocks are
tremendously heading for the deep with –DMIs outstripping +DMIs and stronger
ADX values too (well above 25). Closest to the overbought region and with a
strong ADX, UCAP emerges top
potential loser.

- NB: Rate on ₦100M and above are negotiable and all rates are valid
ONLY for fund received on/before 2nd September 2019.
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