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Monday, October 23, 2017/2:10PM/ Afrinvest Research
Market
Last Week (Our Observations)
Sentiment in
the local bourse was bearish last week as the All Share Index (ASI) slid 0.7%
W-o-W while the YTD gain moderated to 36.1%.
We saw a
bearish performance across sectors with all indices trending downwards W-o-W.
The Insurance index led losers, down 3.6% W-o-W. The Oil & Gas index
trailed, shedding 1.7% W-o-W, while the Consumer Goods index closed the week
1.2% lower. Similarly, the Industrial Goods and the Banking indices weakened
70bps and 3bps W-o-W respectively.
Top gainers
were INTERBRW (+21.8%), GLAXOSMITH (+14.3%) and CUTIX
(+8.8%) while REDSTAREX (-13.0%), MANSARD (10.4%) and LAWUNION
(-8.6%) were the top losers.
Market
This Week (Our Expectations)
The Afrinvest
weekly sentiment weakened to 3.5x from 4.7x recorded last week due to a decline
in market breadth.
With a mixed
reaction in earnings season so far, we expect companies to race to meet up with
month-end deadline for filing unaudited Q3 results.
Accordingly,
we expect investors’ reactions to these result to drive equity market
performance this week.
Our top pick
for the week is ACCESS.
Top Pick for the Week:
Access Bank Plc.
Access Bank
Plc Access or the Group or the Bank ranks as a Tier-1 bank based on Afrinvest
classification with total assets of N3.5tn as at FY:2016 and also qualifies as
a Systemically Important Bank (SIB) based on the CBN s taxonomy.
Access has its
footprints across Sub-Saharan Africa, China, Lebanon, UAE and the UK. The
Groups presence in Africa cuts across Ghana, Rwanda, Zambia, the Gambia, Sierra
Leone and R.D. Congo with 33, 7, 6, 6, 4 and 2 branches respectively.
The Bank
continued its impressive performance in H1:2017 with Gross Earnings growing
41.7% Y-o-Y to N246.6bn whilst PAT rose 17.5% Y-o-Y to N39.5bn. Interest income
also increased 44.2% to N161.9bn in the period. The Bank also declared a
dividend of N0.25 implying a yield of 2.4%
The stock has
a 14-day RSI of 40.0 is currently trading at a current price of N9.50
(20/10/2017).
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News
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