Anticipated dividends push index by 1.37% despite three- day losses
ANTICIPATION of improved full- year 2021 earnings and dividend declarations triggered bargainhunting in the equities segment of Nigeria’s capital market last week, as sentiments remained bullish, pushing the All- share index and market capitalisation by 1.37 per cent to close at 44,454.67 and N23.951 trillion respectively.
Similarly, all other indices finished higher except NGX CG, NGX insurance, NGX
AFR Bank Value, NGX Consumer Goods and NGX Lotus II Indices, which depreciated by 0.79 per cent, 1.54 per cent, 0.07 per cent, 4.35 per cent and 1.34 per cent, respectively. The NGX Asem, NGX Growth and NGX sovereign bonds closed flat.
Analysts linked the performance to bargain hunters who were positioning ahead of more full- year earnings.
Analysts at Cordros Capital said: "In the short term, we expect the bulls to retain dominance in the market given positioning for 2021FY dividends as institutional investors continue to search for clues on the direction of yields in the FI market.
"Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings."
Vetiva Dealings and Brokerage said: "Market traded mixed this week, compared to the bullish sentiments seen last week as the
All- S hare index only returned cial services industry as the sec137bps against the 266bps in tor led the activity chart with prior week. 731.264 million shares valued
"We saw investors taking profat 6.517 billion traded in 10,822 it on previous gainers and we deals; thus contributing 45.71 still expect the market to trade per cent to the total equity mixed at the beginning of the turnover volume. new week amid improved The conglomerate industry activity levels." followed with 403.646 million
Afrinvest said: "In the coming shares worth N452.9 million in week, we expect market per1,537 deals. The consumer formance to be a mix of profitgoods industry ranked third taking and bargain hunting with a turnover of 314.768 milactivities." lion shares worth N17.8 billion
Trading in the top three equiin 4,101 deals. ties namely Transnational Consequently, a total Corporation of Nigeria Plc, BU A turnover of 1.6 billion shares Foods Plc, Jaiz Bank Plc ( meaworth N32.716 billion in 22,607 sured by volume) acco unted deals was traded by investors for 775.685 million shares on the floor of the Exchange worth N16.625 billion in 2,644 past week, in contrast to a total deals, contributing 48.49 per of 2.027 billion shares valued at cent to the total equity N59 billion that was turnover volume. exchanged during the preced
Transactions in the shares of ing week in 15,750 deals. the three firms lifted the finan