Monday, December 03,
2018 12:23 PM / Afrinvest Research
Market Last Week (Our Observation)
· The bearish run in the domestic equities market was extended last week as investors sold off in bellwethers – DANGCEM, GUARANTY and NIGERIAN BREWERIES. Thus, the All-Share Index (ASI) declined 2.5% W-o-W to 30,874.17 points and the YTD loss weakened to -19.3%.
· Performance across sectors were largely bearish, as only 2 of 5 indices under our coverage advanced W-o-W. The Oil & Gas, Industrial Goods and Banking indices shed 5.1%, 3.4% and 3.0% W-o-W respectively while the Insurance and Consumer Goods indices rose 4.7% and 0.1% respectively W-o-W.
· Best performing stocks in the prior week were CONTISURE (+33.0%), BETAGLAS (+10.0%) and CUTIX (+9.6%) while DIAMONDBNK (-31.6%), UNITYBNK (-18.8%) and ABCTRANS (-12.9%) led the laggards.
Markets This Week (Our Expectations)
· The Afrinvest weekly sentiment indicator weakened to 0.6 points from 1.2 points recorded the previous week.
· This week, we expect to see some increased buying activities in the early part of the week following four days of losses in the previous week. However, we do not expect this to be sustained all through the week as the overall bearish sentiment, stoked by political uncertainty, is expected to weigh on market performance. Thus, we maintain our bearish outlook over the near-term.
· Performance of stocks on our equity watch-list from track period till date are as follows; CUSTODIAN (-5.4%), OKOMU (-1.9%), GUARANTY (-5.9%), GUINNESS (-5.2%) and UBA (-10.%).
4. Afrinvest Stock Recommendation for The Week 051118