26th July, 2019

The All Share Index rounded up the week with a 26bps d/d decline. However, Tuesday's strong performance was enough to balance out the losses in the other sessions this week leading to flat w/w performance. Strong earnings from WAPCO (+10.77% w/w) boosted the Industrial Goods sector (+179bps w/w) which was the best sector performer for the week, likewise positive activity in NESTLE (+4.00% w/w) boosted the Consumer Goods sector (+71bps w/w) to a green close w/w. Market activity improved by value at week close, with turnover rising 40% d/d. However, market breadth persisted negative (1.07x) with 14 advances and 15 declines.

What will shape the market tomorrow? 

The NSE ASI has fluctuated around the 28,000 points mark in recent sessions, its lowest level since May 2017. While prices across the board remain attractive, we foresee the All Share Index dipping further at the beginning of the next week in a mixed to negative trading session. However, we do not rule out the possibility of bargain hunting swinging dynamics. Also, with positive reactions to earnings on select names (such as WAPCO), we also do not overlook the effect H2'19 results could have on market sentiment as the month comes to an end.

Reporting for EasyKobo on Friday , 26 July 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited