Monday, July 30, 2018 / 1:45PM / Afrinvest
Market Last Week (Our Observations)
Bargain hunting last week halted the 3weeks bearish run of the domestic equities market as the All Share Index rose 1obps W-o-W to settle at 36,363.97 points while YTD loss improved to 4.2%.
Across sectors, performance was mixed although tilted to the negative as 3 of 5 indices we cover closed in the red. The two gainers - the Insurance and Banking indices rose 2.2% and 2.0% respectively while the Industrial, Oil & Gas, and Consumer Indices fell 4.4%, 3.7% and 0.2% respectively W-o-W.
The best performing stocks were CUTIX (+41.7%), CCNN (+25.9%) and FBNH (+10.5%) while UACPROP (-18.8%), ROYALEX (- 16.7%) and NSLTECH (-16.7%) led laggards last week.
Market This Week (Our Expectations)
The Afrinvest weekly sentiment indicator improved to 1.7points from 1.2 points in the prior week as market breadth advanced from 0.4x to 0.6x.
The marginal uptick in market performance was largely due to investor reaction to positive H1 :2018 releases in the previous week. This week, we expect bargain hunting to be sustained as investors take position ahead of the release of more H1:2018 earnings scorecard.
Our equity watchlist for the month of July remains ZENITH, GUARANTY, NIGERIAN BREWERIES, DANGCEM and OKOMU. Track to date, DANGCEM and OKOMU have gained 5.2% and 3.8% respectively while ZENITH, GUARANTY and NIGERIAN BREWERIES have shed 8.0%, 1.7% and 5.9% respectively.