Monday, March 26, 2018 /11:55 AM /Afrinvest
Market Last Week (Our Observation)
The local bourse maintained a downward trend for the second consecutive week- indicating a largely bearish performance, as the All Share Index (ASI) shed 1.1% W-o-W to 41,472.10 points while YTD gain weakened to 8.4%.
Across sectors, performance was equally bearish W-o-W as 4 of 5 indices closed in the red. The Insurance index led losers down 3.1%. The Industrial and Consumer Goods indices towed the same line shedding 2.8% and 2.2% respectively. Similarly, the Oil and Gas index fell, 2.1% W-o-W. On the flip side, the Banking index was the lone gainer up 3.3% W-o-W.
The best performers for the week were GLAXOSMI (+21.4%), FIDELITY (+17.7%) and DIAMOND (+12.0%) while the laggards were led by UNITYKAP (-21.4%), FTNCOCOA (-21.4%) and NIGERINS (-16.7%).
Market This Week (Our expectations)
The Afrinvest weekly sentiment indicator advanced to 0.6 points from 0.5 points printed last week.
With investors skeptical of forward earnings vis-à-vis elevated valuations, sentiment has turned bearish in recent weeks. However, we believe declining level of valuation has presented investors with attractive entry opportunity; hence, we expect a reversal of the bearish trend in the near term. We expect market performance this week to be largely driven by bargain hunting in fundamentally sound stocks.
Our equity watchlist remains with UBA, ZENITH, ACCESS, FLOURMILLS and MANSARD.