Monday, September 30, 2019 / 10:51AM / By
Afrinvest Research
Market Last
Week (Our Observation)
- Last week, the local bourse
posted a bearish performance as the ASI lost 0.1% W-o-W to 27,675.04
points while YTD loss stood at -11.9%. Similarly, investors lost N11.5bn
as market capitalisation fell to N13.5tn.
- Performance across sectors was
bullish as 4 indices under our coverage gained W-o-W. The Oil & Gas
and Consumer Goods indices rose 11.6% and 5.0% W-o-W respectively.
Similarly, the Insurance and AFR-ICT indices advanced 3.0% and 1.4%
respectively. Conversely, The Industrial Goods and Banking indices lost
1.8% and 1.6% W-o-W respectively.
- SEPLAT(+21.4%),
CONTINSURE(+20.4%) and TOTAL(+20.0%)
led the top performing stocks for the week while LEARNAFRCA(-19.4%),
UACPROP(-18.3%) and NPFMCFB(-9.1%)
led losers.
Market This
Week (Our Expectations)
- The Afrinvest Weekly Sentiment
Indicator weakened to 3.0 points from 3.6 points recorded in the
previous week.
- This week, the bearish
sentiment in the market is expected to continue as there are no major
catalysts to boost investor confidence, although we see opportunities for
bargain hunting.
Weekly Stock Watch for Technical
Traders
Market Analysis... NSE ASI Mellows
Further
The NSE All Share Index lost last week as it dipped 0.1% to print at 27,675.04
points. In line with recent trend, 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
Our only BUY stock for last week lost 1.07%. Based on last week's observations,
GUARANTY
(ADX: 25.76; MFI: 0.0%; %B: 20.28), our top BUY, as well as WAPCO (ADX:
39.35; MFI: 21.50; %B: 117.17), STANBIC (ADX: 43.92; MFI; 42.84;
%B: 42.61), DANGFLOUR (ADX: 26.62; MFI: 44.74; %B:92.44) and UACN (ADX:
31.25; MFI: 52.15; %B: 69.84) has strong prospects for fortune in the near
term. These stocks currently hover around the oversold region with their +DMI
bullying -DMI with >25 ADX value, signifying a strong trend. The Nigerian
market is currently not for the timorous. Caveat emptor!
Our SELL Recommendation
Previous week's observations also suggest that GLAXOSMITH (ADX:
41.34; MFI: 68.13; %B: 19.68), STERLNBANK (ADX: 38.59; MFI:
49.08; %B: 80.69), CAP (ADX: 75.18; MFI: 46.08; %B:
38.82) and CONOIL (ADX: 26.56; MFI: 15.88; %B: -32.92) 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 (well above 25). Closest to the overbought region and with a strong
ADX, GLAXOSMITH emerges top potential loser.
NB: Rate on N100M and
above are negotiable and all rates are valid ONLY for fund received on/before
23rd September 2019.
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