Afrinvest Stock Recommendation for the Week - 081018

Market Last Week (Our Observation)

The domestic equities market opened Q4:2018 bearish, as the All Share Index declined 1.2% W-o-W to 32,383.15 points while YTD loss worsened to 15.3%.

Across sectors, performance was equally bearish as 4 of 5 indices under our coverage closed in the red. The leading loser was the Insurance index, down 1.0%; followed by the Banking (0.7%), Industrial Goods (0.4%) and Consumer Goods (0.3%) indices. The Oil & Gas index emerged the lone gainer W-o-W, up 1.1%.  

Last week’s top performing stocks were CUTIX (+15.4%), FORTE (+10.2%) and JAPAULOIL (+9.1%) while NIGERINS (-18.9%), LAWUNION (-15.4%) and NEIMETH (-10.6%) were the worst performers. 

Markets This Week (Our Expectations)

The Afrinvest weekly sentiment indicator softened to 2.5 points from 3.1 recorded the prior week following a decline in market breadth.

Due to the sell-offs witnessed in the prior week, we anticipate bargain hunting in bellwethers this week.

Track to date, the performance of stocks on our equity watchlist is as follows: UBA (-2.4%), GUINNESS (-1.3%), CUSTODIAN (-1.3%), GUARANTY (-0.4%) and OKOMU (-3.7%).

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NB: Rate on ₦100M and above are negotiable and all rates are valid ONLY for fund received on/before 12th October 2018

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