Monday, July 09, 2018 12:55PM / Afrinvest
Market Last Week (Our Observations)
The domestic bourse kicked off H2:2018 on a bearish note as the benchmark index shed 1.7% W-o-W to close at 37,625.59 points while YTD loss declined further to 1.6%.
The negative sentiment was largely reflected in sectors under our coverage as 4 of 5 indices we monitor closed in the red. The Consumer Goods, Oil & Gas, Industrial Goods and Banking indices lost 3.5%, 2.9%, 2.8% and 0.1% respectively W-o-W whilst the Insurance index was the lone gainer, up 0.5% W-o-W.
The top performing stocks for the week were MBENEFIT (+21.6%), MULTIVER (+20.0%) and UNITYBNK (+14.4%) while FORTE (-23.4%), CORNERST (-17.1%) and MRSOIL (-16.6%) were the worst performers.
Market This Week (Our Expectations)
The Afrinvest weekly sentiment indicator improved to 2.0 points from 1.7 points recorded last week following an improvement in market sentiments.
The improved sentiment witnessed in the past week was however unable to offset sell pressures in market bellwethers, hence the bearish performance. This week we expect investors to take advantage of bargain hunting opportunities in some market bellwethers following their attractive entry prices.
Our equity-watch list for the month of July remains GUARANTY, DANGCEM, OKOMUOIL, ZENITH and NIGERIAN BREWERIES. Track to date 4 of 5 stocks are in the green with OKOMU, NIGERIAN BREWERIES, GUARANTY and DANGCEM returning 15.0% 7.9%, 7.4% and 0.9% while ZENITH has declined 4.7%. Nonetheless, we remain optimistic of the upside in ZENITH and thus maintain our positions on all stocks on our watch-list.