Afrinvest Stock Recommendation For The Week 121118

 

Market Last Week (Our Observation)

• Last week, investors positioning in market bellwethers - NESTLE, SEPLAT and NIGERIAN BREWERIES - buoyed market performance as the All Share Index (ASI) closed higher, up by 0.2% W-o-W to 32,200.21 points while N27.5bn was added to market capitalisation which settled at N11.7tn. Also, YTD loss moderated to -15.8%.
• Performances across sectors under our coverage was bearish, as 3 of 5 indices closed negative W-o-W as the Industrial Goods, Insurance and Banking indices shed 3.8%, 1.9%and 0.5% respectively W-o-W while the Consumer Goods and Oil & Gas indices rose by 1.6% and 1.3% respectively W-o-W. 
• Best performing stocks last week were UACN (+11.1%), NPFMCRFBK (+11.1%) and PRESCO (+10.7%) while MBENEFIT (-23.3%), FLOURMILL (-16.8%) and WAPCO (-14.3%) led decliners.

Markets This Week (Our Expectations)

• The Afrinvest weekly sentiment indicator weakened to 1.9 points from 2.2 points recorded the previous week as a result of a weakening in market breadth. 
• Following a mild uptick in market performance in the prior week, we believe this buying interest will be sustained this week. Nevertheless, we expect profit taking to drag performance towards the close of the week. 
• Performance of stocks on our equity watch-list from track period till date are as follows; CUSTODIAN (-3.5%), OKOMU (+3.6%), GUARANTY (+1.8%), GUINNESS (-5.2%) and UBA (-5.4%).

• NB: Rate on ₦100M and above are negotiable and all rates are valid ONLY for fund received on/before 16th November 2018