We expect Nigeria’s equities market to remain positive this week as investors continue bargain hunting in Tier 1 banking counters ahead of their interim dividend payments.
Most of the big lenders have submitted their audited half-year (H1) results to the Central Bank of Nigeria (CBN) with their Board’s approval to pay interim dividend. The banks results are expected to berth on the Nigerian Stock Exchange (NSE) from this week.
In addition to expected bargain hunting on Tier 1 banks this week, the market will also witness increased buy sentiment in favour of consumer goods stocks seen trading at record lows as against analysts target prices.
Despite low trading turnover seen last week, investors continued to buy attractive stocks as the nation’s bourse extended its weekly bullish run by +0.35 percent.
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Equity investors booked about N45billion gain at the close of trading week ended Friday August 28, thanks to insurance and consumer goods stocks which saw increased bargain despite profit taking in banking counters. The stock market’s negative return year-to-date (YtD) decreased to -5.71percent, while its month-to-date (MtD) return increased by -2.49 percent.
“Our view continues to favour cautious trading as risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions.
“Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks”, said Cordros Capital research analysts.
Week-on-week (WoW), the Nigerian Stock Exchange (NSE) All-Share Index and Market Capitalisation increased from 25,221.87 points and N13.158 trillion to 25,309.37 points and
N13.203trillion respectively.
Twenty-nine (29) equities appreciated in price during the review week, lower than 31 equities in the preceding week. Thirty-six (36) equities depreciated in price, higher than 27 equities in the preceding week, while 98 equities remained unchanged, lower than 105 equities recorded in the preceding trading week.
The market recorded total turnover of 1.072 billion shares worth N7.384 billion traded in 16,684 deals by investors on the floor of the Exchange, in contrast to a total of 950.414 million shares valued at N10.123 billion that exchanged hands preceding week in 16,647 deals.
The Financial Services industry (measured by volume) led the activity chart with 586.761 million shares valued at N4.022 billion traded in 8,483 deals; thus contributing 54.76percent and 54.47percent to the total equity turnover volume and value respectively. The Conglomerates industry followed with 307.744 million shares worth N799.159 million in 1,010 deals; and the Consumer Goods industry, with a turnover of 50.170 million shares worth N968.272 million in 3,018 deals.
Trading in the top three equities namely Transnational Corporation of Nigeria Plc, UACN Plc and United Bank for Africa Plc. (measured by volume) accounted for 396.337 million shares worth N1.373 billion in 1,845 deals, contributing 36.99percent and 18.59percent to the total equity turnover volume and value respectively.
