GTI Top-5 Weekly Stock Picks - 080118


Monday, January 8, 2018 /2:00 PM / GTI Research 

Market Review for week ended and Month January 5th, 2018
The Nigerian equity market set off the New Year on a laudable note as most indicators across board closed in the green during the period under review. The activity in the market was significantly helped by upbeat in economic data and earnings expectation for the Q4 2017. On economic front, the December PMI came in at 59.3 index points on Tuesday and it was revealed that the level of economic activity has sustained upbeat trend for the ninth month in a row. 

Week-on-week (WoW), the All-Share Index (ASI) gained a total of 680.07 absolute points, representing a growth of 1.78% to close at 38,923.26 points. This helped to set the market on a stellar growth pathway with year-to-date (Ytd) return at 1.78%.

A total turnover of 2.42 billion shares worth N18.81 billion in 20,874 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.31 billion shares valued at N12.64 billion that exchanged hands last week in 9,016 deals. 

The Financial Services Industry (measured by volume) led the activity chart with 1.68 billion shares valued at N8.73 billion traded in 13,033 deals; thus contributing 69.39% and 46.43% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 536.92 million shares worth N1.26 billion in 1,288 deals. Consumer Goods Industry came a distant third with a turnover of 100.46 million shares worth N6.95 billion in 3,426 deals.

Fifty-five (55) equities appreciated in price during the period, higher than thirty-two (32) of the previous week. Twelve (12) equities depreciated in price, lower than twenty-five (25) recorded in the previous week, while one hundred and five (105) equities remained unchanged lower than one hundred and fifteen (115) equities recorded in the preceding week

Proshare Nigeria Pvt. Ltd.

Outlook for the Week Ending January 12th, 2018
This week, we expect a continuation of volatility witnessed thus far in the year with periodic pull back as profit is booked. The market is also expected to be impacted by existing positive economic data which has continue to resonate investors’ confidence (especially, local portfolio and foreign investors). 

At this point, we strongly advise investors to take a keen interest on firms’ fundamentals before taking investment position on such firms. We equally advise on taking a medium-long term view of the market.

Kindly note that GTI Top-5 Stock Picks have cumulatively achieved about 95% of indicated targets in recent past. Due to this premise, we are currently reviewing recent results of companies under our radar in order to come up with investment position(s) going forward. Hopefully, it will return on this publication as soon as we are done. 

In the meantime, the following stocks listed below falls into our watch list this week.

Access Bank, UCAP, Fidson, Flour Mills, DangCem, UBA, Lafarge Africa and Zenith Bank.

Proshare Nigeria Pvt. Ltd.

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