19-06-2018 – Weekly Stock Recommendation and Stocks to Watch

The market extended the gains recorded in the previous week as the NSEASI advanced further by 0.67%. The YtD return also improved slightly to 1.79%. Forty-one gainers and thirty-three losers settled market breadth at 1.24x.

JAPAULOIL retained its spot at the top of the gainers’ chart; the counter advanced by 22.58% to close at NGN0.38. However, MBENEFIT closed as the worst performing stock, declining by 13.89% to close at NGN0.31. The market recorded its second consecutive week of positive return, on the back of gains on bellwether counters in the oil & gas and consumer goods sectors.

We expect profit taking on some of the counters which posted gains in the last two weeks, in line with the trend observed on the last two sessions last week. The 2018 Appropriation Bill is expected to be signed into law this week, and this should improve investor sentiment.

Although we expect trading in the market this week to be characterised by mixed sentiment, however, the effects of bargain hunting and the current positive momentum of the market should tilt market performance into positive territory.