Investment analysts have stated that, positioning for 2021 full year dividends will continue to support buying activities in the Nigerian stock market.
In the new week, analysts at Cowry Assets Management Limited expected the equities market to remain upbeat as investors continue to position in readiness for dividend distributions in the first quarter (Q1) of 2022.
Analysts at Cordros Securities stated that, “in the near term, we believe positioning for 2021FY dividends will continue to support buying activities in the market even as institutional investors continue to search for clues on the direction of yields in the fixed income (FI) market.
“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Afrinvest Limited said: “this week, we expect the positive performance to be sustained as more investors take position ahead of the dividend season.”
Last Week’s Trading Activities
The dominance of the bulls ensured the local bourse kicked off the first trading week of 2022, last week on a strong footing, as the benchmark index recorded gains in all trading sessions this week.
The market opened for four trading days last week as federal government declared Monday, January 3, 2022 a Public Holiday to mark the New Year celebrations. Precisely, the All-Share Index advanced by 2.66 per cent week-on-week (W-o-W) to close at 43,854.42 points. Also, market capitalization gained N1.3 trillion or 5.97 per cent to N23.628 trillion on BUA Foods listing.
Similarly, the sector gauges mirrored the benchmark index as three of the five sub-indices tracked closed in green. Sub-indices were largely positive, the NGX Oil &Gas, NGX Banking and the NGX Industrial indices rose by 2.68 per cent, 0.78 per cent and 0.34 per cent respectively to close at 354.26 points, 409.22 points and 2,015.22 points respectively. However, the NGX Consumer Goods index and the NGX Insurance indices lost 0.93 per cent and 0.87per cent to close at 196.26 points and 584.13 points respectively.
The market breadth for the week was negative as 40 equities appreciated in price, 31 equities depreciated in price, while 84 equities remained unchanged. Academy Press led the gainers table by 20.00 per cent to close at 60 kobo, per share. Cornerstone Insurance followed with a gain of 19.57 per cent to close at 55 kobo, while Meyer Plc went up by 19.57 per cent to close to 55 kobo, per share.
On the other side, SUNU Assurance Nigeria led the decliners table by 17.78 per cent to close at 37 kobo, per share. Consolidated Hallmark Insurance followed with a loss of 16.46 per cent to close at 66 kobo, while Sovereign Trust Insurance declined by 13.33 per cent to close at 26 kobo, per share.
Overall, a total turnover of 2.027 billion shares worth N59.014 billion in 15,750 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 995.361 million shares valued at N13.209 billion that exchanged hands previous week in 10,264 deals.
The Consumer Goods Industry (measured by volume) led the activity chart with 1.255 billion shares valued at N 51.973 billion traded in 2,581deals; contributing 61.90 per cent and 88.07 per cent to the total equity turnover volume and value respectively. The Financial Services Industry followed with 537.959 million shares worth N 4.627 billion in 8,015 deals, while the ICT Industry traded with a turnover of 76.906 million shares worth N704.346 million in 933 deals.
Trading in the top three equities; BUA Foods, Wema Bank, and Transnational Corporation of Nigeria (Transcorp) accounted for 1.349 billion shares worth N51.253 billion in 1,120 deals, contributing 67 per cent and 86.85 per cent to the total equity turnover volume and value respectively.