Monday, August 13, 2018/ 01.56PM / Afrinvest
Market Last Week (Our Observations)
Last week, the performance of the domestic bourse was dragged by sustained profit taking across board. As a result, the All Share Index (ASI) declined 2.9% W-o-W to settle at 35,446.47 points while YTD loss moderated to -7.3%. Sector performance was equally negative as all indices under our coverage closed in the red. The Oil & Gas index lost 5.4% while the Industrial Goods and Insurance indices shed 4.4% and 1.6% respectively. Similarly, the Banking and Consumer Goods indices depreciated 1.3% and O.3%respectively.
The top performing stocks for last week were NEIMETH (+33.3%), NIGERINS (+30.0%) and AIRSERVICE (+10.0%) while NSLTECH (-19.4%), CONERTSONE (-13.8%) and IKEJAHOTEL (-10.9%) were the worst performing stocks.
Market This Week (Our Expectations)
The Afrinvest weekly sentiment indicator weakened to 1.7 points from 2.0 points in the previous week on the back of a moderation in market breadth. We note that market performance was largely driven by brewing political risk coupled with underwhelming H1 :2018 earnings released last week.
Based on this, we expect sell pressures to be sustained in the market till midweek even though the Relative Strength Index (RSI) of the market (at 24.7) is below the oversold threshold of 30.0. Our equity watch list for the month of August include UBA, GUARANTY, CUSTODIAN, FLOURMILLS and OKOMU