Now Reading:

Afrinvest Stock Recommendation for the Week 010221

Monday, February 01, 2021 / 03:25 PM / by Afrinvest Research / Header Image Credit: Titan FX

Market Last Week (Our Observations)

The domestic equities market reversed previous week's bearish sentiment, posting a positive performance following gains on all trading sessions. Accordingly, the NSE All Share Index rose 3.4% w/w to settle at 42,412.66 points. Similarly, YTD return improved to 5.3% while market capitalisation advanced N737.9bn w/w to close at N22.2tn.
Performance across sectors was largely bullish as 5 of 6 indices under our coverage trended northward w/w. The AFR-ICT and Banking indices advanced 7.8% and 3.3% respectively. Trailing, the Insurance and Industrial Goods indices rose 1.7% and 1.4% respectively. Similarly, the Consumer Goods index increased 1.3% w/w. Conversely, the Oil & Gas index was the lone laggard, down 7.2% w/w.
CHAMPION (+59.5%), FIDSON (+30.1%) and MAYBAKER (+27.4%) were the top performers while SOVRENINS (-21.2%), ACADEMY (-17.5%) and NIGERINS (-14.8%) were the laggards.

Market This Week (Our Expectations)

The Afrinvest Weekly Sentiment Indicator weakened to 1.3x from the 1.7x recorded last week.
In the coming week, we expect to see slight profit-taking at the start of the week. However, we envisage market performance will be dictated by the performance of the earnings results.

Proshare Nigeria Pvt. Ltd.