By Nkiruka Nnorom

Equity dealers have projected  that the domestic market will close bullish this week following positioning by bargain hunters on dividend paying stocks ahead of full year financial results release and dividends declaration by the quoted companies.

This is even as investors lost N47 billion last week on the back of losses in some blue chip stocks.

Profit taking activities had dominated activities in the market in the previous week with decline recorded in three of the five trading sessions.

Specifically, the Nigerian Exchange Limited (NGX)  All Share Index (ASI) fell by 0.2 per cent to close the week at 42,353.31 points from 42,626.85 points in the previous week.

The bearish sentiment was driven by sell-off and profit taking in FBN Holdings Plc, which fell by 4.6 per cent, followed by MTN Communication Nigeria Plc (-2.3%), Access Bank Plc (-2.2) and Zenith Bank Plc (-1.6%).

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Similarly, the market capitalization of all listed equities declined by 0.21 per cent to close at N22.060 trillion from N22.107 trillion.

Activity level was also weak as trading volume and value declined by 26.7 per cent and 18.8 per cent to 965.06 million ordinary shares and N12.46 billion respectively.

Commenting on the expectations for the week,  analysts at Cowry Asset Management Limited, said: “In the new week, we expect the local bourse to be bullish as investors position in dividend paying stocks in the last  three days of trading session in 2021.”

Also,  analysts at Cordros Capital,  said: “As the year draws to  close, we expect yield-seeking investors to take positions in stocks with attractive dividend yields ahead of the 2021 full year dividend declarations.

“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”

Meanwhile, activity across the sectors was positive as four of the sectors closed in the green.

The insurance sector led,  appreciating by 1.8 per cent, followed by the consumer goods sector with 0.8 per cent, while the industrial goods and the banking sectors advanced by 0.4 per cent and 0.1 per cent respectively.

On the other hand, the oil and gas sector emerged the lone loser, declining by 0.5 percent during the week.

Vanguard News Nigeria