Nigerian Stock Exchange

Investors position for H1 results  

By Nkiruka Nnorom  

Investment analysts have said that activities in the nation’s stock market will be bullish this week over positioning by investors in dividend paying stocks ahead of the release of the half year 2021 (H1’21) financial results by quoted companies.

They posited that the market provides an ample opportunity for capital gains but advised investors to position in only fundamentally sound stocks.

This comes as investors gained N245 billion following the reversal of the two weeks downward trend in stock prices last week.  

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According to analysts at Cordros Capital, alpha-seeking investors would continue to rotate their portfolio towards equities amid moderation in the uptick of yields in the fixed income (FI) market.  

They noted that the market performance would be dominated by the bulls, “as positioning by early birds in dividend-paying stocks ahead of H1’21 dividend declarations should outweigh profit-taking activities.”

Also,   analysts at Cowry Asset Management, said: “We expect the equities market index to trade northwards as investors position in high yielding dividend paying stocks, especially the companies that pay interim dividend and have printed positive first quarter financial result.”

Meanwhile, activity in the market was positive last week with the bulls dominating in four of the five trading days.  

As a result, the All Share Index (ASI) rose by 1.2 percent to close at 38,726.10 points. Specifically, bargain hunting in large-cap stocks including Dangote Cement Plc (+3.5%), BUA Cement (+2.8%), MTN Communication Nigeria (+2.6%), and Guaranty Trust Bank (+2.3%) buoyed market performance. Consequently, the Month-to-Date (MTD) return turned positive at +0.7 percent, while the Year-to-Date (YTD) loss moderated to -3.8 percent.

Also,   the market capitalisation of all listed equities also rose by 1.2 percent to N20.185 trillion from N19.940 trillion, resulting in N245 billion gains to the investors.

Performance across sectors was mixed with the industrial goods and the insurance sectors, rising by 2.6 percent and 1.2 percent  respectively.

The consumer goods and oil and gas sectors closed lower at 0.4 percent and 0.8 percent respectively, while the banking sector closed flat.

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