Tuesday, June 19, 2018 12:15PM /Afrinvest
Market Last Week (Our Observations)
The bullish performance of the equities market was extended as the All Share Index (ASI) advanced 0.7% W-o-W to close at 38,928.47 points while YTD return improved to 1.8%.
Sector performance was mixed as 3 of 5 indices rose W-o-W. The Oil & Gas (+3.8%), Insurance (+2.7%) and Banking (+0.3%) indices closed higher W-o-W while the Consumer and Industrial Goods indices declined 0.8% and 0.1 % respectively W-o-W
The top performing stocks were PRESTIGE (+39.1%), JAPAULOIL (+31.0%) and EQUITYASSUR (+20.0%) while MBENEFIT (-16.2%), NEIMETH (-9.1%) and ETERNA (-8.7%) declined the most.
Market This Week (Our Expectations)
The Afrinvest weekly sentiment indicator declined to 2.4 points from 3.4 points recorded in the preceding week, largely due to weaker market breadth which fell to 0.8x (33 stocks advanced compared to 42 decliners) from 1.7x in the previous week.
Following two days of successive losses in the market, we expect a rebound this week as investors seek for bargain hunting opportunities.
In light of this, we expect investors to take position in market bellwethers currently trading at attractive entry prices. Our equity watch-list for the month of June remains GUARANTY, DANGCEM, OKOMUOIL, UBA and DANGSUGAR.