Investors Stake N14.2bn on Stocks, Market Rebounds
Investors staked N14.145 billion on 1.021 billion shares in 17,565 deals at the stock market last week.
This was an increase of 36 per cent compared with N10.330 billion invested in 1.006 billion shares in 17,165 deals the previous week.
Also, the market rebounded last week as the bulls returned strongly pushing the Nigerian Exchange Limited (NGX) All-Share Index (ASI) by 1.47 per cent to close at 38,212.01, while market capitalisation went up by 1.49 per cent to close at N19.919 trillion.
Market operators and analysts said with the half year (H1) earning season around the corner, investors would embark on bargain hunting on stocks that would declare interim dividends, a development they said would likely retain the market in the bulls’ territory. Besides, companies with March 31, as year ended have started to report their performance and declaring dividends.
For instance, Flour Mills of Nigeria Plc, has reported an increase of 126 per cent in profit after tax for the year ended March 31, 2021 to N25.72 billion, up from N11.38 billion in 2020. The company is to reward shareholders with a dividend of 165 kobo per share, which is higher than the 140 kobo paid the previous year.
In the opinion of analysts at Cordros Securities, the H1- 21 earnings season on the horizon, they believe investors would be looking for clues on the sustainability of the decent corporate earnings released for Q1-21.
“However, we expect mixed market performance in the week ahead as bargain hunting in dividend-paying stocks will be matched by intermittent profit-taking activities. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” they said.
Meanwhile, the Financial Services Industry led the activity chart with 721.728 million shares valued at N5.995 billion traded in 8,709 deals, thus contributing 70.70 per cent and 42.38 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry
followed with 99.083 million shares worth N2.395 billion in 3,703 deals, just as the third place was ICT Industry, with a turnover of 72.718 million shares worth N3.407 million in 643 deals.
Trading in the top three equities namely, Guaranty Trust Holding Company Plc, Wema Bank Plc and Zenith Bank Plc accounted for 213.871 million shares worth N3.818 billion in 3,023 deals.
The price movement chart showed 43 equities that appreciated higher than 33 in the previous week, while 26 equities depreciated in price lower than 37 equities in the previous week. Ikeja Hotel Plc led the price gainers with 60 per cent, trailed by Linkage Assurance Plc with 30.7 per cent.