Afrinvest Stock Recommendation for the Week 180520

Monday, May 18,  2020 / 4:59 PM  / By Afrinvest Research / Header Image Credit: Afrinvest Research

Market Last Week (Our Observations)

• Last week, the equities market posted a loss as the All-Share Index (ASI) declined 0.7% w/w to settle at 23,871.33 points. As a result, YTD return worsened to -11.1% while market capitalisation fell N90.7bn w/w to close at N12.4tn.
• Sector performance was bearish as 4 of 6 indices that we track closed in the red w/w. The Industrial Goods (-2.2%) and Insurance (-0.6%) indices lost the most. Trailing, the AFR-ICT (-0.3%) and Banking (-3bps) indices also closed the week negative. Conversely, the Consumer Goods and Oil & Gas indices were the lone gainers, up 2.3% and 1.6% w/w.
• The top performing stocks for the week were NPFMCRFB (+50.8%), UNILEVER (+21.0%) and MAYBAKER (+20.9%) while UAC-PROP (-13.0%), CAP (-9.8%) and ARBICO (-9.7%) were the laggards.

Market This Week (Our Expectations) 

• The Afrinvest Weekly Sentiment Indicator weakened to 1.7x from the 3.4x recorded last week.
• This week, we anticipate a mixed performance as investors react to more corporate earnings releases. Additionally, we expect to see some bargain hunting activities in early trading sessions.

• NB: Rate on N100M and above are negotiable and all rates are valid ONLY for fund received on/before 18th May 2020.

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