Monday, March 19, 2018 /1:10 PM /Afrinvest
Market Last Week (Our Observation)
Performance of the local bourse was largely bearish last week, as the All Share Index fell 2.9% W-o-W to halt a 2-week gaining streak. The index closed at 41,035.90 points on Friday and is up 9.7% YTD.
Across sectors, performance was equally bearish as 4 of 5 indices closed in the red. The Banking index led laggards, down 8.4% W-o-W. The Oil & Gas and Consumer Goods indices trailed, shedding 1.6% apiece W-o-W. Similarly, the Industrial Goods index declined 0.2% W-o-W. On the other hand, the Insurance index was the lone gainer, up 0.3% W-o-W.
The best performing stocks for the week were ABCTRANS (+14.3%), JOHNHOLT (+12.5%) and NEM (+11.6%) while JAPAUL OIL (-30.9%), FIDELITY (-22.5%) and UNITY (-21.5%) were the worst performers.
Market This Week (Our expectations)
The Afrinvest Weekly Sentiment indicator declined to 0.5 from 0.9 following the decline in market breadth and turnover last week.
Although we saw a lag in the expected reaction to the impressive results released last week due to investor skepticism on forward earnings, we expect bargain hunting to buoy performance this week whilst maintaining our positive near-term outlook for the market.
Our equity watchlist for March remains FLOURMILLS, MANSARD, ACCESS, UBA and ZENITH.