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Afrinvest Stock Recommendation For The Week 280119

Monday, January 28, 2019 01.:52 PM / Afrinvest Research

Market Last Week (Our Observation)

The local bourse enjoyed buying interest last week as investors took advantage of cheap assets on the exchange. As a result, the All Share Index (ASI) rose 1.4% to 31,426.63 points while YTD loss contracted to 1bp.
Across sector indices, performance was mixed W-o-W, though negatively skewed. The Industrial Goods index led laggards, down 2.0%, trailed by the Oil & Gas and Consumer Goods indices which fell 1.3% and 0.4% respectively. The Banking and Insurance indices were up 7.1% and 2.0% respectively.
The top performing stocks for the week were FIDELITY (+24.4%), CAVERTON (+22.6%) and FCMB (+22.2%) while RESORTS (-23.1%), SOVRENIN (-19.2%) and UBN (-8.9%) led laggards.

Markets This Week (Our Expectations)

The Afrinvest Weekly Sentiment Indicator strengthened to 1.5 points from 0.5 points recorded the previous week.
We believe appetite for value stocks will remain upbeat in the near term. Nonetheless, we expect to see profit taking activities during the week. We recommend that investors take position in cheap assets with sound fundamentals in order to take advantage.
The performance of stocks on our equity watch-list from track period till date are as follows; GUARANTY (0.0%), ZENITH (-0.2%), DANGCEM (+4.3%), OKOMU (+7.6%), and NIGERIAN BREWERIES (+2.0%).