Nigerian bourse this week stands to open low as more equities closed Friday with unsatisfied offers than bid. Please note that anything is possible in a market session. Aside from Diamond Bank Plc that was left with 2000,000 units bid size and perhaps, First Aluminium with a closing bid size of 248,000, most others were left with small units or nothing as bid sizes to close trading activities for the week. Technically, virtually all major indicators are looking negative at least for market open.
The week is bound to be turbulent to reflect sharp profit taking with little resistance from buyers. Consequently, hold cash and wash for the first day of the week. When prices adjust to comfortable level, entry could be made. On the whole, positive sentiment and earnings outlook will sustain the market for the rest of January 2018.
Basis of investment should be strong last quarter earnings and positive outlook of the next. Equities with P/E Ratios within accommodating levels should be considered while equities whose prices are being driven by the prices of others should be avoided irrespective of the allure.
EQUITIES TO WATCH FOR THE WEEK:
ACCESS stands to start the week weak judging by the 193,000 unsatisfied bid size at close of trade Friday and daily charts. Possibility of a recovery into week is high no matter how little. Strong 2017 Q3 earnings and 2017 Q4 outlook make the stock buyable. If you currently own Access, no need to do panic selling. If price recedes below purchase, wait and beef up your holding.
AG LEVENTIS closed Friday with just 6,176 units bid size. Daily charts are signalling weak open. There might be a little recovery into the week all things being equal.
CADBURY: Going by earnings, the stock is not buyable. Charts are however showing little possibilities.
CHAMPION BREWERIES closed Friday with 12,363 offer size. Daily charts are indicating weak open for the week. There is likelihood of a recovery into the week all things being equal.
C & I LEASING is a penny stock with mild growth last week. Same mild positive performance could be repeated this week. 2017 Q3 earnings of about 50kobo make the stock attractive even at current price provided the earnings could be built upon at year end. The over 359,000 closing offer size makes the stock looks weak at Monday open.
DANGOTE CEMENT is a stock to watch this week. Closing with over 300 units bid size with only 44 units offer size make the week’ open look mildly strong. Dangote Cement’ 2017 Q3 earning was about the full year performance of 2016. Future expectation is already built into P/E ratio of 22.
GSK: A few more days of decline make the stock buyable. Always remember though that its 2017 Q3 earning was 54kobo negative.
GUARANTY at current price will most likely oscillate on its way up. Though its P/E Ratio remains one of the highest in its industry, the stock however enjoys positive market sentiment. Keep a tab. The 250,000 excess offer size at Friday trading session’ close makes the open Monday weak.
HONEYWELL was market’ highest gainer last week. Even when most other stocks lost steam Friday, the stock still gained 10%. Indicators are showing weak signals for this week but since the market has a mind of its own, why not keep a tab to see what happens? The company recorded 28kobo EPS at 2017 Q2.
MAY AND BAKER might make an attempt at an upper price movement later in the week. Keep a tab.
NESTLE: Remains solid though with future expectation fully imputed in current price.
UBA may shed some weight at the start of the potentially turbulent week. Do not panic. Wait for the adjustment. Invest more.
ZENITH: Keep a tab. The start of the week might be rough though.