Stock Recommendation for the Week April 6th, 2020 (Source: InfoWARE, Date: 06-Apr-2020)
Click here to download the Fundamental Stock Recommendationfor the week. Click here to download the Corporate Actions for the week.
Market Last Week (Our Observations)
Last week, the equities market maintained its downtrend as the All-Share Index (ASI) depreciated 3.5% w/w to settle at 21,094.62 points. As a result, YTD return worsened to -21.4% while market capitalisation declined Ã¢â€šÂ¦399.8bn w/w to close at Ã¢â€šÂ¦11.0tn.
Sector performance was bearish as 5 of 6 indices under our coverage trended southward w/w. The Banking (-5.3%) and AFR-ICT (-4.2%) indices led laggards. Similarly, the Consumer Goods (-3.9%), Insurance (-1.2%) and Industrial Goods (-0.3%) indices lost w/w. Lastly, the Oil & Gas appreciated 2.3% w/w.
The top-performing stocks for the week were GLAXOSMITH (+24.7%), LIVESTOCK (+18.6%) and CADBURY (+12.9%) while NIGERIAN BREWERIES (-13.7%), ETI (-12.4%) and CUSTODIAN (-11.0%) were the laggards.
Market This Week (Our Expectations)
The Afrinvest Weekly Sentiment Indicator waned to 1.5x from the 4.7x recorded last week.
Following four weeks of consecutive losses, we expect to see some bargain hunting in early trades this week. However, we maintain a bearish outlook in the near term as investors continue to react to the global pandemic, although the proposed OPEC+ meeting scheduled for Thursday may tilt sentiment to the upside in the week ahead.
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