26th April 2019 ( Lagos ) :Shedding 60bps to close out the week, the ASI lost 115bps w/w after the two sessions of gains could not hold sway over the heavier losses in the other two sessions. After seeing gains early in todays session (on the back of positive earnings), and trading above the 30,000 point mark for about an hour, the index went on a downtrend from 10:45am till market close. Market activity also declined with volume and value traded dipping 30% and 52% d/d respectively.

What will shape the market tomorrow? 

Analysts expect to see a mixed open to the new week as investors hunt for bargains on some of the counters like Tier 1 banks and DANGCEM which is scheduled to release its Q1'19 results on Tuesday. However, analysts do not rule out the possibility of continuous profit taking on some names as seen this week. 

Stocks to Watch 

On the Bid Cart:  Following the release of positive Q1'19 earnings (+58% PAT y/y), WEMABANK gained 857bps to settle at N 0.76 (+21% YTD). After shedding points for most of the short week, the stock recovered lost ground in today's session. Worthy of note is the strong performance by OANDO after the release of strong Q1'19 results (+11% PAT y/y) late yesterday, the stock rose 928bps today to settle at N 5.30.

On the Offer Cart:  OKOMUOIL released poor Q1'19 results (-71% PAT y/y) leading investors to exist on the position. The stock declined 10.00% today to settle at N 72.00. Similarly, though posting a y/y rise in PAT (+7%), FBNH shed points on the day due to results not meeting expectations. FBNH settled at N 7.25 after declining 823bps today (-9% YTD).

Corporate Announcements

Wema Bank Plc., released Q1'19 results, reporting Revenue of N 20 billion (+24% y/y) and Profit After Tax of 1.2 billion (+58% y/y).

Stanbic IBTC Holdings Plc., released Q1'19 results, reporting Revenue of N 59 billion (+2.3% y/y) and Profit After Tax of N 19 billion (-17% y/y).

FBN Holdings Plc., released Q1'19 results, reporting Revenue of N 146 billion (+5% y/y) and Profit After Tax of N 16 billion (+7% y/y).

FCMB Group Plc., released Q1'19 results, reporting Revenue of N 44 billion (+4.1% y/y) and Profit After Tax of N 3.6 billion (+40% y/y).

Dangote Flour Mills Plc's Board of Directors has considered and agreed to recommend to its shareholders, Olam International Limited's offer for the acquisition of 99.90% of the Issued Share Capital of the Company.

Reporting for EasyKobo on Thursday , 26 April 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited