Stocks gain N377bn in one week investors position for interim dividend

In the trading week ended July 4, Nigeria’s equities market rose by N377billion despite mixed sessions of positive and negative closes.

Investors have started positioning in stocks that have the potential for interim dividend payment.

Consumer Goods, insurance, and banking stocks recorded increased bargain in the review week while activities of profit takers muted Oil & Gas and Industrial stocks.
Market watchers had ahead of the review week’s trading expected the equities market to continue in its upward trend leading to a slight gain in the ASI.

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They hinged their optimism on the market benefiting from the excess liquidity in the financial system. This is also in addition to investors who are positioning for second-quarter (Q2) earning season, favouring corporates with potentials for quality interim dividend payment.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased from preceding week’s close of 119,995.76 points and N75.962 trillion respectively to 120,990.27 points and N76.339 trillion.

“The market’s recovery in the last session signals that investors are still leaning into the broader risk-on sentiment. As portfolio rebalancing activity picks up ahead of H2 positioning.

“We expect to see continued rotation into fundamentally sound names, particularly across the banking and consumer sectors,” Lagos-based Vetiva analysts said in their post-trading commentary on Thursday July 3.