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Afrinvest Stock Recommendation For The Week 310519

Monday, June 03, 2019 10:05AM / Afrinvest Research

Market Last Week (Our Observation)

Last week, the local bourse recorded a positive performance despite losses on 3 of 4 trading days, with the All Share Index (ASI) increasing 0.6% W-o-W to 31,069.37 points. Accordingly, market capitalisation rose N82.0bn to N13.7tn while YTD loss improved to -1.1% from -1.7% last week.
Overall sector performance was bullish as 5 out of 6 indices under our coverage appreciated W-o-W. The Banking index recorded the largest gain, up 3.9% W-o-W. The Insurance index trailed as it inched higher by 3.3% W-o-W while the Oil and Gas index gained 2.1% W-o-W. Similarly, the Consumer Goods and Industrial Goods indices appreciated 1.3% and 1.0% W-o-W respectively. On the flipside, the AFR-ICT index was down by 2.5% W-o-W.
The top performing stocks last week were CHAMS (+15.2%), STERLING (+11.1%) and ETI (+10.9%) while BERGER (-9.5%), RTBRISCO (-9.4%) and ETERNA (-8.7%) led top losers.

Market This Week (Our Expectations)

The Afrinvest Weekly Sentiment Indicator strengthened to 4.0 points from 3.2 points recorded in the previous week.
Following last week’s performance and improved investor sentiment, we anticipate a bearish performance this week in the absence of any major market catalyst.
Performance of stocks on our equity watchlist from track period till date are as follows: GUARANTY (-8.3%), ZENITH (-12.8%), DANGCEM (+5.2%), OKOMUOIL (-2.9%) AND NESTLE (-8.2%).