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Tuesday, May 01, 2018 /01:20PM/GTI
Market review for the week ended April 27th, 2018
Activity
on the Nigerian equity market in the week under review closed in the northward
as traders ramp up buying momentum in the light of strong Q1 2018 corporate
performances reported in the outgoing month. The Q1 ‘18 earnings season have
been largely positive with good margins. This has helped to spur demand for
stocks considering that fixed income yields environment are currently weak and
low. We expect the above scenario to have an influence on prices between the short
and medium terms, regardless of the periodic price correction, as earnings are
already in growth path and waiting for stronger GDP confirmation. Note that
activity was mixed with strong intra-day’s volatility all through the week.
Week-on-week
(w/w), the All-Share Index (ASI) gained a total of 430 absolute points,
representing a growth of 1.05% to close at 41,244.67 points. Meanwhile, the
Market Capitalization gained N197.16 billion, representing a growth 1.34% to
close at N14.94 trillion. The year-to-date’s (Ytd) return now stands at +7.85%.
The divergence in growth of the two lead indicators was as a result of listing
of the recent Rights Issue undertaken by the Flour Mills of Nigeria Plc.
A
turnover of 1.83 billion shares worth N24.65 billion in 23,148 deals were
traded in the outgone week by investors on the floor of the Exchange in
contrast to a total of 3.01 billion shares valued at N30.30 billion that
exchanged hands last week in 24,036 deals.
The
top three most traded equities measured by volume are – Law Union and Rock
Insurance Plc, FBN Holdings Plc, and Zenith International Bank Plc accounted
for 581.02 million shares worth N7.10 billion in 4,283 deals, contributing
31.83% and 28.79% to the total equity volume and value respectively.
Thirty-three
(33) equities appreciated in price during the period, lower than thirty-six
(36) in the previous week. Forty-one (41) equities depreciated in price, higher
than thirty-three (33) equities of the previous week, while ninety-five (95)
equities remained unchanged lower than one hundred (100) equities recorded in
the preceding week.
Outlook for the week ending May 4, 2018
We expect to see a mixed
performance in the current week as portfolio and fund managers continue to dig
into the recent numbers in order to allow for effective repositioning of their
portfolios as observed at month end. Activity will equally be tied to first
quarter economic data, such as, the Q1 ‘18 GDP and Purchasing Managers Index
(PMI) for April which are expected in the week.
In the meantime, we strongly advise
investors to take a keen interest on firms’ fundamentals before taking an
investment position. We equally advise on taking a medium-long term view of the
market.
If you would require any help to
ensure that your portfolio is positively aligned, or any inquiry on your
portfolio, please send an email to research@gti.com.ng
or to headoffice@gti.com.ng.
We will also like to implore you to
encourage your friends to subscribe to the GTI Research mailing list by
visiting www.gti.com.ng and clicking on
email subscription to join our ever growing mailing list.
Our Watch List
In
the meantime, the following stocks listed below falls into our watch list this
week.
Access Bank, Dangote Cement, Honeywell Flour, Fidelity Bank and PZ
Cussons.
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