Monday, August 06, 2018 / 11:50AM / Afrinvest
Market Last Week (Our Observations)
Bearish sentiments returned to the market last week as the All Share Index (ASI) shed 0.4% W-o-W to close at 36,499.67 points while YTD loss deteriorated to 4.6%.
Performance across sectors was mixed as 3 of 5 indices under our coverage trended south. The Insurance and Consumer Goods indices fell 1.0% apiece while the Industrial Goods index slid O.5% W-o-W. On the other hand, the Oil & Gas and Banking indices gained 6.8% and 0.8% respectively W-o-W.
UNIONDAC (+50.0%), NEIMETH (+42.9%), and MBENEFIT (+23.3%) were the best performing stocks last week while INTEBREW (-17.6%), DIAMOND (-16.4%) and PHARMDEKO (-13.6%) led the underperforming stocks last week.
Market This Week (Our Expectations)
The Afrinvest Weekly Sentiment Indicator advanced to 2.ox from 1.7x recorded the prior week on the back of improvements in market breadth.
The bearish performance of the market last week was largely due to investors' reaction to corporate earnings released. This spurred bouts of profit taking in stocks that rallied and bargain hunting in stocks with low entry prices. However, profit taking by investors outweighed the positive effect bargain hunting had on market performance.
Nonetheless, we expect a bullish performance this week as investors anticipate positive H1 :2018 earnings of bellwethers yet to release their results.
The performance of stocks on our equity watch-list for the month of July with track end date - 3rd August is as follows; GUARANTY (+3.6%) DANGCEM (+2.7%), ZENITH (-6.5%), OKOMU (-5.0%) and NIGERIAN BREWERIES (0.0%).