Monday, September 23, 2019 / 12:07PM / By
Market Last Week
- Last week, the local bourse posted a bearish performance as the ASI lost
0.3% W-o-W to 27,698.69 point while YTD loss worsened to -11.9%. Similarly,
investors lost N39.1bn as market capitalisation fell to N13.5tn.
- Performance across sectors was bullish as 5 indices under our coverage
gained W-o-W. The Insurance and Consumer Goods indices rose 4.8% and 2.2% W-o-W
respectively. Similarly, the Banking and Oil & Gas indices gained 1.8% and
0.5% respectively. The Industrial Goods index also gained 4bps W-o-W. Conversely,
the AFR-ICT index lost, down 7.6% W-o-W.
- CORNERSTONE (+30.0%), LIVESTOCK (+28.2%)
and STANBIC (+22.4%) led the top performing stocks for the
week while CHAMPION (-11.5%), PORTLAND PAINTS (-9.7%)
and NCR (-9.1%) led losers.
Market This Week (Our
- The Afrinvest Weekly
Sentiment Indicator weakened to 3.6 points from 4.1 points recorded in the
- This week, the bearish sentiment in the market is expected to continue
as there are no major catalysts to boost investor confidence, although we note
that there is room for bargain hunting.
Weekly Stock Watch for
Market Analysis... NSE ASI
Posts Bearish Performance
The NSE All Share Index
lost last week as it dipped 0.3% to print at 27,698.69 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
A week ago, out of our 5
picks, 1 closed in the red - DANGCEM
(-0.3%). Based on last week's observations, ZENITH (ADX: 29.16; MFI:
75.78; %B: 57.07) has strong prospects for fortune in the near term. This stock
currently hovers around the oversold region with its +DMI bullying -DMI with
>25 ADX value, signifying a strong trend. Attention! Attention! Attention!
The Nigerian market is currently not for the timorous.
Our SELL Recommendation
Previous week's observations also suggest that NASCON (ADX: 43.53; MFI:
97.73; %B: 81.95), OKOMUOIL
(ADX: 53.86; MFI: 95.92 %B: 80.69), INTRBREW (ADX: 41.59;
MFI: 89.49; %B: 57.54) and CUSTODIAN
(ADX: 26.56; MFI: 84.12; %B: 29.16) 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, NASCON emerges top
NB: Rate on N100M and above are negotiable and all rates are valid ONLY for fund received on/before 23rd September 2019.