Monday, July 16, 2018 04:50PM / Afrinvest
Market Last Week (Our Observations)
The equities market maintained a bearish run for the second consecutive week as the NSE All Share Index (ASI) shed 0.6% W-o-W to settle at 37,392.77 points while YTD loss further declined to 2.2%.
Across sectors, performance was mostly bearish as 4 of 5 indices under our coverage fell W-o-W. The Banking, Insurance, Consumer and Industrial Goods indices shed 2.1%, 5.1%, 0.4% and 1.3% W-o-W respectively while the Oil & Gas index emerged the lone gainer, up 0.7% W-o-W.
The best performing stocks for the week were CUSTODIAN (+17.5%), FORTE (+9.7%) and EQUITYASUR (+9.1%) While TANTALIZER (-25.0%), MBENEFIT 24.4%) and DUNLOP (-20.7%) were the worst performers.
Market This Week (Our Expectations)
The Afrinvest weekly sentiment indicator reduced to 1.7 points from 2.0 points recorded the prior week due to a decline in market breadth to 0.3x (17 stocks advanced vs 57 that declined) compared to the previous week's 0.7x.
The negative performance in the preceding week was largely due to sell-offs in market bellwethers despite the positive close on the first and last trading sessions.
In light of this, we expect market performance this week to be buoyed by investors drive to take position in stocks trading at attractive prices as we await H1 :2018 earnings results. Our equity watch-list for the month of July remains GUARANTY, DANGCEM, OKOMUOIL, ZENITH and NIGERIAN BREWERIES. Our track to date (TTD) shows that GUARANTY (+2.8%), NIGERIAN BREWERIES (+6.8%), DANGCEM (+1.8%) and OKOMU (+15.0%) closed in the green while ZENITH further fell to 5.9%.