Though for the first time since the week ended June 15, 2018 when the market recorded two straight sessions of gains on June 11 and 12th, boosted with positive Q2 earnings, the market closed last week with three positive sessions, the last two, being straight sessions of positive outings. Notably, four straight sessions in the previous week had closed in the red. Month on Month, July 2018 is set to close in the red as it has done in three of earlier four years since 2014.
While the NSEASI closed 0.9% down in 2014, it was a decline of 9.8% in July 2015. Though 2016 performance in the month of July was seemingly better but it was yet a drop of 5.4%. 2017 July was however a departure as the NSEASI grew by 8.2%. 2018 MtD shows a decline of 4.3% with low probability of enough growth in the two-remaining session in the month to wipe off the MtD decline.
FACTS FROM BASIC STATISTICS
Though NSEASI and market capitalisation were up in the week under review, a cursory analysis of general performance point to the fact that the market is still largely week as improvements were relatively prominent among low priced insurance stocks while premium and pension stocks where the big boys dwell remained down apparently in wait of a stimulus in Q2 earnings.
BEST STOCKS
Cutix’ movement was in response to the 1:1 bonus and 20kobo per share cash dividend declared by the organisation. CCNN grew in response to positive Q2 earnings. Notably, the stock’ float is low, it also has low number of shares in issue. Continental Reinsurance also reported positive Q2 earnings. Same with Caverton and Vitafoam. FBNH also grew because of improved Q2 earnings.
DECLINERS
The list above consists of stocks with negative Q2 earnings. These are UACP, WAPCO, ABBEYBDS while ROYALEX and others were down in response to profit taking.
POSSIBILITIES THIS WEEK
Myriads of Q2 earnings are being expected to be released Monday and Tuesday this week. Going by performances and rate of responses so far, most of these results are expected to show brilliant statistics even as the market is also expected to respond well enough to them.
In almost equal capacity, because market fundamentals are weak, bargain hunting stands to pull prices down. Consequently, the week ahead looks mixed despite probable positive impact of Q2 earnings.
STRATEGY:
- Trade with caution.
- Don’t be greedy. Price growth are not forever
- Please look away from low profile stocks with alluring prices. Know what is moving a price before joining a rally.
- A good stock will always remain a good stock. Pick premium stocks.
STOCKS TO WATCH
Please note. Some of these equities might end up with marginal loss to close the week after one or two days of gains.
- ACCESS BANK PLC will most likely oscillate for the better part of the week
- CAVERTON looks flat at open but WoW growth possibility
- CCNN might open flat, first sheds some weight but with positive close of the week
- C & I LEASING stands to see turbulent days ahead but with possible growth at the end of the week
- CONTISURE might dwindle but with possibility of closing the week higher
- DANGOTE FLOUR might start the week active with profit taking later in the week
- DANGOTE SUGAR might be active at the start the week to close flat for the week.
- DIAMOND BANK PLC promises to have a good week.
- FCMB looks attractive at week start to be pulled down by profit taking
- FIDSON promises to continue to resist losses
- FIDELITY will share the week in ratio 2:3 up
- MAY AND BAKER looks good for the week
- NEIMETH stands to close weak for the week after a good start
- OANDO might experience profit taking to pull down price after a good start for the week
- STERLING BANK PLC looks flat at the start with possibility of gains later in the week
- UNION DIAGNOSTICS
- VITAFOAM might have a green week even if it will be with marginal growth
- WEMA BANK PLC looks mixed for the week
- ZENITH BANK PLC promises to see a good start but low later in the week