30-07-2018 – Weekly Stock Recommendation and Stocks to Watch

The Nigerian Stock Exchange All Share Index snapped a three-week losing streak to close at 36,636.97pts. The Year to Date return is currently pegged at -4.20%. The market breadth settled at 0.62x, given thirty-one (31) gainers and fifty (50) losers.

The selling pressure in the market eased slightly, on the back of earnings releases, despite the disappointing results by some of the consumer goods companies.

We expect further release of positive corporate earnings to drive activities in the market this week, in continuation of the sentiment towards the end of the previous week. The anticipated release of positive GDP growth figures is expected to point to further progress in the economy despite the growing uncertainty from the political space.

We also expect the declaration of interim dividend by some companies to drive activities in the market. Hence, we expect positive sentiment in the market this week to drive the All Share Index higher for the second week in a row.