Market/economic insight: the weekly brief (November 12th – 16thNovember 2018)

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The performance of the Nigerian Equity Market returned bearish last week with the index (NSE ASI) down by 0.44% WTD to close at an index level of 32,058.28 and Market capitalization of N11.70 trillion.

The sectoral performance was negative as bearish sentiments were witnessed in all sectors with the exception of the Consumer Goods and Industrial Goods Sectors up by 0.04% and 1.02% WTD respectively. However, the Oil & Gas sector recorded the highest decrease amongst NSE indices with the NSE Oil/Gas index down by 1.13% WTD, owing to significant price depreciation in ETERNA (-17.43%) and SEPLAT (-2.36%).

Market activities were characterised by profit taking on 3 out of 5 trading sessions as investors remained cautious of the equity market. This could be attributed to election approach and yield in the fixed market is relatively attractive.
In the global space, all selected equities markets except China CSI 300 returned bearish as investors focussed on dwindling price of crude oil, trade uncertainty, Brexit and growing interest rate as bond yield advanced in advanced economies.

Stock Watch
Over the last five trading sessions:
SEPLAT (Seplat Petroleum Dev. Company) rose by 2.36% to
close at N652.70.
Recommendation: We maintain a hold
rating on this stock.
FBNH (First Bank of Nigeria Holdings) remained unchanged
to close at N7.45.
Recommendation: We maintain a buy rating
on this stock.
GUARANTY (Guaranty Trust Bank) fell by 0.67% to close at
N36.90.
Recommendation: We maintain a buy rating on this
stock.
ZENITHBNK (Zenith Bank) fell by 1.64% to close at N24.00.
Recommendation: We maintain a buy rating on this stock.