06-08-2018 – Weekly Stock Recommendation and Stocks to Watch

The Nigerian bourse reversed last week’s positive sentiment as the NSEASI declined by 0.37% this week, dragging the YtD return to -4.56%. The market breadth settled at 0.78x, with thirty-eight (38) bulls and forty-nine (49) bears in the week.

UNIONDAC prevailed as the top gainer this week, advancing by 50.00% to NGN0.33. However, INTBREW topped the laggards’ board with a share price loss of 17.57% to close at NGN30.50. The market performance last week was attributable to the selling pressures which dominated the industrial goods and consumer goods sectors.

Last week, we saw most companies release their financial scorecards and the earnings release failed to translate to positive gains in the market. We expect fewer releases this week.

We note the existence of buying pressure last week as the market closed up three (3) out of five (5) days in the week. This week we envisage that positive sentiment will prevail in the space, owing to increased bargain hunting activities.