January 14, 2019/Afrinvest Research
Market Last Week (Our Observation)
- The local bourse maintained a downtrend W-o-W as the All Share index fell by 2.6% to close at 29,830.70 while market return year to date worsened to -5.1%.
- Across sectors, performance was largely negative as all indices save for the Industrial Goods index (+1.0%) closed in the red W-o-W. The Insurance index led laggards, down 7.0%. The Oil & Gas, Consumer Goods and Banking indices trailed, shedding 6.3%, 3.6% and 0.9% W-o-W respectively.
- The best performers last week were JBERGER (+22.2%), DIAMOND (+12.2%) and TRANSCORP (+11.2%) while NEM (-33.5%), RESORTS (-26.0%) and UNITY (-17.0%) were the worst performing stocks.
Markets This Week (Our Expectations)
- The Afrinvest Weekly Sentiment Indicator strengthened to 3.0 points from 2.6 points recorded in the previous week.
- We maintain a bearish outlook for the market in the near term as we expect the run on the market to persist till post-election stability is established. Nonetheless, we are of the opinion that long-term investors can take position in cheap assets with sound fundamentals in order to take advantage of the anticipated post-election rally.
- The performance of stocks on our equity watch-list from track period till date are as follows; GUARANTY (-2.9%), ZENITH (-5.2%), DANGCEM (-4.8%), OKOMU (+7.6%), and NIGERIAN BREWERIES (-0.4%).
NB: Rate on ₦100M and above are negotiable and all rates are valid ONLY for fund received on/before 14th January 2019