Afrinvest Stock Recommendation For The Week 300919

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Monday, September 30, 2019 / 10:51AM / By Afrinvest Research

 

Market Last Week (Our Observation)

  • Last week, the local bourse posted a bearish performance as the ASI lost 0.1% W-o-W to 27,675.04 points while YTD loss stood at -11.9%. Similarly, investors lost N11.5bn as market capitalisation fell to N13.5tn.  
  • Performance across sectors was bullish as 4 indices under our coverage gained W-o-W. The Oil & Gas and Consumer Goods indices rose 11.6% and 5.0% W-o-W respectively. Similarly, the Insurance and AFR-ICT indices advanced 3.0% and 1.4% respectively. Conversely, The Industrial Goods and Banking indices lost 1.8% and 1.6% W-o-W respectively.
  • SEPLAT(+21.4%), CONTINSURE(+20.4%) and TOTAL(+20.0%) led the top performing stocks for the week while LEARNAFRCA(-19.4%), UACPROP(-18.3%) and NPFMCFB(-9.1%) led losers.

Market This Week (Our Expectations)

  • The Afrinvest Weekly Sentiment Indicator weakened to 3.0 points from 3.6 points recorded in the previous week.
  • This week, the bearish sentiment in the market is expected to continue as there are no major catalysts to boost investor confidence, although we see opportunities for bargain hunting.

Proshare Nigeria Pvt. Ltd.

 

Weekly Stock Watch for Technical Traders

Market Analysis... NSE ASI Mellows Further
The NSE All Share Index lost last week as it dipped 0.1% to print at 27,675.04 points. In line with recent trend, the Negative Directional Movement Index (-DMI) still outstrips the Positive Directional Movement Index (+DMI) and continues to display a super-strong ADX (Average Directional Movement Index), indicating the NSEASI's reluctance to rise to glory. In the coming week, we expect the index to continue to wander within the negative territory. But why are we pessimistic? All indicators strongly suggest there are no possible triggers to herald a rebound in the near term.

Our BUY Recommendation
Our only BUY stock for last week lost 1.07%. Based on last week's observations, GUARANTY (ADX: 25.76; MFI: 0.0%; %B: 20.28), our top BUY, as well as WAPCO (ADX: 39.35; MFI: 21.50; %B: 117.17), STANBIC (ADX: 43.92; MFI; 42.84; %B: 42.61), DANGFLOUR (ADX: 26.62; MFI: 44.74; %B:92.44) and UACN (ADX: 31.25; MFI: 52.15; %B: 69.84) has strong prospects for fortune in the near term. These stocks currently hover around the oversold region with their +DMI bullying -DMI with >25 ADX value, signifying a strong trend. The Nigerian market is currently not for the timorous. Caveat emptor!

Our SELL Recommendation
Previous week's observations also suggest that GLAXOSMITH (ADX: 41.34; MFI: 68.13; %B: 19.68), STERLNBANK (ADX: 38.59; MFI: 49.08; %B: 80.69), CAP (ADX: 75.18; MFI: 46.08; %B: 38.82) and CONOIL (ADX: 26.56; MFI: 15.88; %B: -32.92) top our wish list for investors yearning lean pockets. As it stands, these stocks are tremendously heading for the deep with -DMIs outstripping +DMIs and stronger ADX values (well above 25). Closest to the overbought region and with a strong ADX, GLAXOSMITH emerges top potential loser.

Proshare Nigeria Pvt. Ltd.

NB: Rate on N100M and above are negotiable and all rates are valid ONLY for fund received on/before 23rd September 2019.


Proshare Nigeria Pvt. Ltd.


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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
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