Monday, July 1, 2018 / 01:10PM / Afrinvest
Market Last Week (Our Observations)
The domestic bourse closed positive last week as the All Share Index (ASI) advanced 1.1% W-o-W to close at 38,278.55 points while YTD return improved to 0.1%. Across sector, performance was mixed as 3 of 5 indices rose W-o-W. The Industrial and Consumer Goods indices appreciated 2.7% apiece while the Insurance index advanced 0.7% W-o-W. On the other hand, the Banking and Oil &Gas indices declined 2.4% and 1.2% respectively W-o-W.
The top performing stocks for the week were HONYFLOUR (+9.6%), LAWUNION (+9.3%) and NEM (+5.3%) while JAPAULOIL (-23.4%), PRESTIGE (-16.7%) and EQUITYASUR (-8.7%) were the worst performers.
Market This Week (Our Expectations)
The Afrinvest weekly sentiment indicator reduced to 1.7 points from 2.4 points recorded the preceding week despite improving investor sentiment measured by market breadth. Despite our weakened sentiment indicator, we expect sentiment in the domestic market to improve and remain upbeat this week, thus buoying market performance.
We believe the positive performance in the previous week which was largely driven by fund managers rebalancing their portfolios will filter into this week. For the month of July, our equity watch list consists of GUARANTY, DANGCEM, OKOMUOIL, ZENITH and NIGERIAN BREWERIES .
1. Cordros Weekly Stock Recommendation - 020718