These are analysts’ expectations from Nigeria’s stock market this week

Two important factors – interim dividend payments and resumption of FX sales – will determine the direction of Nigeria’s stock market this week, according to analysts’ views collated by INVESTOR.

While interim dividend supports the buy side, the resumption of FX sales provides foreign investors a long-waited opportunity to sell their stakes and limit exposure in Nigeria stocks.

Despite pockets of profit taking activities last week, Nigeria’s listed stocks still booked over N155billion gain amid renewed interest in the bourse.

The gains were supported by activities of investors who bought some of the banking stocks to qualify for their interim dividends as proposed by the lenders in their recently published half-year (H1) financials.

Meristem research analysts anticipate lingering positive sentiment following the release of half-year (H1) results from most Tier 1 banks (including Gtbank,

Access, Zenith Bank and UBA).

“We also expect corporate actions to be top of mind for most investors as they take position ahead of declared dividend payments announced in the previous week”, said Meristem research analysts.

“In addition, we envisage that the elevated system liquidity following the maturities in the fixed income space, and a dearth of attractive alternative investment options would influence market direction this week”, Meristem stated.

United Capital Research said, “We expect to see some profit- taking given the bullish performance seen across the board last week. Also, the resumption of FX sales at the I&E window might provide previously locked-in foreign investors the long-waited opportunity to exit their stakes or limit exposure to Nigerian equities”.

“With the consecutive gains recorded last week, we expect the market to trade mixed this week, with continued bargain hunting in some counters and profit taking in others”, according to Vetiva research analysts .

“We expect the overall market performance to be positive this week as more investors position to benefit from the interim dividend declared by some bellwethers”, said GTI Securities in its September 7 note to investor.

“While we expect the soft gains in the domestic market to be sustained, we note that investors are likely to pocket gains. Also, the resumption of FX sales could provide foreign investors a longwaited opportunity to sell their stakes and limit exposure. Thus, we anticipate a mixed performance this week”, Afrinvest Research analysts said.