Afrinvest Stock Recommendation For The Week 041119

Proshare

Monday, November 04, 2019   /12:50 PM  / By Afrinvest Research / Header Image Credit: Afrinvest


Market Last Week (Our Observation)

    • Last week, the local bourse posted a bearish performance as the ASI shed 0.2% W-o-W to 26,293.30 points while YTD loss stood at -16.3%. Similarly, investors lost N26.9bn as market capitalisation fell to N12.8tn.
    • Performance across sectors was mixed as 3 of 6 indices under our coverage gained W-o-W. The Oil & Gas index rose 5.0% to lead gainers. Similarly, the Industrial Goods index advanced by 1.1% while the Insurance index appreciated 0.3%. Conversely, the Banking and AFR-ICT indices shed 0.5% and 1.6% respectively. Lastly, the Consumer Goods index closed the week with a 0.7% loss. 
    • UPL (+24.3%), CORNERSTONE (+18.4%) and AIICO (+11.1%) led the top performing stocks for the week while CHAMPION (-11.8%), AFROMEDIA (-9.8%) and GUARANTY (-4.2%) led losers.


    Market This Week (Our Expectations)

      • The Afrinvest Weekly Sentiment Indicator strengthened to 3.5 points from 2.6 points recorded in the previous week.
      • We maintain our bearish stance on the domestic equities market as investors maintain a  risk-off approach. However, we do not rule out opportunities for bargain hunting.


      Weekly Stock Watch for Technical Traders

      Market Analysis... Domestic Bourse Sustains Bearish Run  

      Last week, the market closed on a negative note despite gains on 3 of the 5 trading days. As a result, the NSE All-Share Index fell 0.2% W-o-W to settle at 26,355.35 points. Again, the negative Directional Movement Index (-DMI) outperforms the positive Directional Movement Index (+DMI) and continues to display a strong ADX (Average Directional Movement Index), indicating the NSE-ASI's reluctance to rise to prominence. Next week, we expect a further decline in the index. Our pessimism is due to the absence of triggers to spur a rebound in the near term.

       

      Our BUY Recommendation

      From our recommendation in the previous week, only DANGCEM (+2.4%) gained.

      Our observation from last week revealed that CUTIX (ADX: 26.76; MFI: 36.75; %B: 53.01), WAPCO (ADX: 48.93; MFI: 37.04; %B: 28.88), OANDO (ADX: 26.34; MFI: 39.91; %B: 44.32), DANGCEM (ADX: 31.90; MFI: 66.94; %B: 92.18) and WEMABANK (ADX: 28.17; MFI: 72.51; %B: 45.19) have prospects for gains this week. These tickers currently hover around the oversold region with their +DMI outperforming -DMI with >25 ADX value, signifying a strong trend. However, buyer's discretion is advised!

       

      Our SELL Recommendation

      Our observation from last week also suggests that NESTLE (ADX: 37.57; MFI: 93.95; %B: -32.92), STANBIC (ADX: 41.06; MFI: 93.27; %B: -19.70), UCAP (ADX: 38.56; MFI: 87.73; %B: 38.50), and PRESCO (ADX: 77.32; MFI: 74.24; %B: 132.92) are the tickers most likely to record losses. These stocks are on the downtrend with –DMI outstripping +DMI and strong ADX values (>25). Our potential top loser, which is closest to the overbought region with a high ADX is NESTLE. 

      Note: For more inquiry and to open a stockbroking account, see contact details below:

       Proshare Nigeria Pvt. Ltd.

      • NB: Rate on N100M and above are negotiable and all rates are valid ONLY for fund received on/before 4th November 2019.


      Proshare Nigeria Pvt. Ltd.


      Related News

      1. Afrinvest Stock Recommendation For The Week 211019
      2. Afrinvest Stock Recommendation For The Week 141019
      3. Afrinvest Stock Recommendation For The Week 071019
      4. Afrinvest Stock Recommendation For The Week 300919
      5. Afrinvest Stock Recommendation For The Week 230919
      6. Afrinvest Stock Recommendation For The Week 160919
      7. Afrinvest Stock Recommendation For The Week 090919
      8. Afrinvest Stock Recommendation For The Week 020919
      9. Afrinvest Stock Recommendation For The Week 260819
      10. Afrinvest Stock Recommendation For The Week 190819


      Proshare Nigeria Pvt. Ltd.

      Proshare Nigeria Pvt. Ltd.
      READ MORE:
      Related News
      SCROLL TO TOP