Market/Economic Insight: The Weekly Brief (January 7th – 11th 2018)

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The performance of the Nigerian Equity Market returned bearish last week with the index (lASI) down by 2.64% WTD to close at an index level of 29,830.70 and Market
capitalization of N11.12 trillion. The Market sentiment was negative as profit taking was
witnessed in all sectors with the exception of the Industrial Goods Sector, up by 1.00%. The Insurance Sectors recorded the highest decline, down by 7.00% owing to significant price depreciation in NEM (-33.46%) as major stakeholders (VFD
Group, Eaton Acquisition, Three Seas Investment and Premium Green Limited) exited their holdings in the Company.

In the global space, despite the partial government shutdown in the United States (US), all selected equities markets closed in the green region as China-US trade talk continued during the week. Meanwhile, with the partial government shutdown, it is expected that hundreds of thousands of federal workers will not receive paychecks this week which will have a negative ripple effect on the economy in the week ahead.

Stock Watch

Over last five trading sessions

UBA fell by 6.96% to close at N7.85 and has fallen by 4.55% YTD.
Recommendation: We maintain a buy rating on this stock.

SEPLAT fell by 10.00% to close at N576.00.
Recommendation: We maintain a buy rating on this stock.

ZENITHBNK rose by 0.69% to close at N21.85. However, it has shed 5.21% YTD. Recommendation: We maintain a buy rating on this stock.

HONYFLOUR fell by 2.54% to close at N1.15 and has fallen by 10.16% YTD. Recommendation: We maintain a buy

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Contact Anchoria Asset Management Limited for more information

Email: [email protected]

www.anchoriaam.com