• Friday, September 29, 2023
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Here are analysts’ views on Stock Market this week

Local investors account for 60.86% of Nigeria’s equities trading in 8 months

The record negative returns seen year-to-date (YTD) in Nigeria’s stock market implies that investors will still have to keep their eyes on the market’s balls till they get off the hook.

When it comes to stock investing, nothing will pay off more than educating yourself. There is a risk in every stock investment, so be prepared for the ups and downs. It is better to invest in a down market and to “get out” in a soaring market, as per the philosophy of Warren Buffett.

Research analysts’ recent views INVESTOR collated explain this. Most of them expect Nigeria stock buyers to remain cautious while others still see bargain-hunting opportunities. “Although market performance bucked the trend last week, we anticipate a resurgence of interest on quality counters that present attractive dividend yield”, said Meristem research analysts.

“We expect investors to keep their eyes peeled for counters with upcoming qualification dates for interim dividends. However, in the absence of inspiring domestic macros and fragile global economic conditions, we expect investors to remain cautious while seeking bargain hunting opportunities.

“We project that elevated system liquidity following the maturities in the fixed income space, and a dearth of attractive alternative investment options would spur some buying interest in the equities market. We thus expect the market to close positive this week”, Meristem research analysts stated.

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“Despite the profit-taking witnessed in the early trading sessions of last week, we expect to see some modest recovery this week as investors take position ahead of interim dividend payment by the top tier banks ( Zenith, Guaranty, Access, and UBA) whose qualifications date for the interim dividend this week”, according to GTI Research.

“We expect to see some buying interest in the equity market amid anticipated sizable maturities in the debt market scheduled to hit the system”, said Lagos-based United Capital Research analysts.

“Market participants are expected to remain wary while they reposition their market portfolio in light of current macroeconomy trend”, Access Banks team of economic intelligence said in their September 14 note “We expect the bearish momentum to persist in the absence of any major catalyst”, Afrinvest analysts said.

“We expect the performance of the market in the next few sessions to be largely dependent on events around indicators such as global crude oil price movements, news around the second wave of the COVID-19 pandemic as well as liquidity in the FX market”, Vetiva Securities analysts said.

The Nigerian Stock Exchange (NSE) All-share Index (ASI) had decreased slightly by 0.05 percent last week to 25,591.95 points as against week-open high of 25,605.64 points; also the valued of listed stocks on the Bourse decreased to N13.350trillion as against week-open level of N13.358 trillion. Though investors still booked N5billion loss despite that we saw how dip buyers poured into beaten-down banking shares.

The market has increased by + 1.05 percent in this month of September; while its negative return year-to-date (YTD) stands at -4.66 percent. Week-on-week (WOW), NSE Banking Index decreased most by -2.69 percent, followed by NSE Oil & Gas Index (-1.25percent). The weekly performances of other sectoral indices show NSE Consumer Goods Index (-0.27percent), NSE Industrial Index (+0.35 percent), and NSE Insurance Index (-0.66percent).