16-07-2018 – Weekly Stock Recommendation and Stocks to Watch

The Nigerian bourse sustained its bearish run this week as the NSEASI shed 0.62%, dragging its YtD return to -2.22% at the end of trades this week.The market breadth settled at 0.41x, with twenty-three (23) bulls and fifty-six (56) bears in the week.

We attribute the market performance to further selling pressure which cut across most of the sectors in the bourse, especially the banking, and consumer goods sectors.The market has sustained its bearish run in the month of July, recording minimal instances of a positive close.

This week, we envisage the release of more financial scorecards in the bourse, most especially in the consumer goods space. The financial scorecard released last week failed to translate into positive performance for the respective counters, hence we do not expect this to act as a major driver of activity this week.

This week, we note the relatively attractive prices at which most counters in the market are trading, and we expect this to be this should be attractive enough to drive positive investor sentiment.