*… as investors gain N809bn

By Peter Egwuatu

Trading activities on the Nigerian Exchange, NGX, last week,  extended its positive sentiment on bargain hunting, driven by investors’ positioning in dividend paying stocks and interests generated by the share buy-back scheme of Dangote Cement.

Consequently, investors gained over N809 billion in five trading days last week as market capitalisation surged to N24.76 trillion from N23.951 trillion previous week.

Another equities market major performance indicator, NGX All Share Index, rose by 3.4 per cent to 45,957.35 points the highest level since 19th January 2018 (45,092.83 points) from 44,454.67 points the previous week.

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Also, Dangote Cement share price hit a 13-year high at N284, on a strong buying sentiment and high traded volume.

Meanwhile, analysts have opined that economic fundamental information, expected corporate earnings, outcome of the Central Bank of Nigeria, CBN, Monetary Policy Committee, MPC, meeting holding today and Tuesday, the rallying oil prices in the international market and other factors, including the 2021 full-year earnings reporting season are   expected to shape the market in the first quarter, Q1 2022.

Commenting on expectations for the current week, analysts at Cordros Securities Limited, said: “In the week ahead, we believe investors will be focused on the outcome of the MPC meeting to gain further clarity on the movement of yields in the Fixed Income,  FI, market.

“Consequently, we expect a “choppy theme” as cautious trading will likely dominate the market.

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

InvestData Consulting Limited, said: “We expect a mixed sentiment to continue on positioning in fundamentally sound stocks and profit taking, as rallying oil price support economic and market fundamentals.

“Also, investors are targeting dividend paying stocks as they reposition portfolio ahead of 2021  quarter four, Q4 and full-year audited earnings reports that may start hitting the market any moment from now.

“All eyes are on MPC meeting outcome, as inflation reversed up to 15.62 per cent and other economic data.

“Also noteworthy is the oil price that remains above $74 projection of IMF at $88.22, while the International Monetary Fund is calling for hike in interest rate and further devaluation of Naira.”

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