Monday, July 23, 2018 12:30PM/Afrinvest
Market Last Week (Our Observations)
The domestic equities market maintained a downward trend last week as the All Share Index (ASI) slid 2.1% W-o-W to settle at 36, 603.44 points while YTD loss dipped to 4.3%.
Across sectors we cover, performance was equally bearish as all but one index closed in the red W-o-W. The Insurance index, the lone gainer rose 0.1% while the Consumer Goods Index shed 3.9% making it the biggest loser W-o-W. The Banking, Industrial Goods and Oil & Gas indices followed suit, shedding 3.6%, 3.3% and 2.2% respectively.
The best performers were IKEJAHOTEL (+11.0%), MRSOIL (+10.2%) and LINKASSURE (+9.7%) while UNIONDAC ( -34.3%), TANTALIZERS (-22.2%) and NEIMETH (-17.3%) were the worst performers last week.
Market This Week (Our Expectations)
The Afrinvest weekly sentiment indicator declined to 1.2 points from 1.7 points in the prior week due to the improved market breadth.
The negative performance in the prior week was largely due to sell pressures in bellwether stocks as there was speculative rally in penny stocks drove market breadth last week.
Moreso, we observed increased buy interest in DANGCEM before the release of an impressive H1:2018, hence, we envisage investors will position in fundamentally sound stocks this week as more earnings trickle in.
Our equity watchlist for the month of July remains GUARANTY, DANGCEM, OKOMUOIL, ZENITH and NIGERIAN BREWERIES. Track to date, DANGCEM and ZENITH have gained 5.2% and 3.8% respectively while ZENITH, GUARANTY and NIGERIAN BREWERIES shed 8.0%, 1.7% and 5.9% respectively.