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Stock Investors Expect Bulls To Return



Following the weekly decline seen in the Nigerian stock market last week, the market is expected to move up with a marginal gain this week.

Analysts Optimism

In the new week, analysts at Cowry Assets Management Limited expected the equities market to mellow as corporates that opted for 60-days filing option may release their audited full year 2021 results in the next two weeks; hence, feel the new week will largely be quiet.

Cordros Capital Limited stated that, “this week, we expect investors to take advantage of the moderation in the share prices to make a re-entry in dividend-paying stocks ahead of subsequent 2021 full year earnings releases. However, we believe investors will remain reluctant to leave gains in the market. As such, we expect intermittent profit-taking to continue due to uncertainties about the direction of yields in the fixed income (FI) market. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”

Also, analysts at Afrinvest Limited stated that, “this week, we expect bargain hunting activities to dominate as investors cherry-pick relatively attractive stocks.”

Last Week’s Trading Activities

In the just concluded week, the bullish activities in the domestic equities market witnessed a halt as profit takers took over the Exchange to make real their paper gains.

Investors appeared to be unsatisfied with the recently released Okomu Oil’s unaudited Q4, 2021 financial results, which showed a marginal decline in profit after tax. Thus, the market saw a 10 per cent week-on-week (W-o-W) decline in its share price to N127.80 per share.

In line with the bearish trend, the All-Share Index moderated W-o-W by 0.16 per cent to close at 47,202.30 points. Similarly, the market capitalization shed N42 billion W-o-W to close at N25.436 trillion.

Surprisingly, sub-sector gauges closed in green; the NGX Banking, NGX Insurance index, NGX Consumer Goods NGX Oil & Gas and the NGX Industrial indices rose by 2.34 per cent, 1.51 per cent, 1.35 per cent, 0.29 per cent and 0.06 per cent respectively to close at 453.45 points, 185.85 points, 579.00 points, 423.93 points and 2,138.30 points respectively.

However, market breadth for the week was positive as 44 equities appreciated in price, 31 equities depreciated in price, while 81 equities remained unchanged. SCOA Nigeria led the gainers table by 42.40 per cent to close at N1.78, per share. RT Briscoe followed with a gain of 39.29 per cent to close at 39 kobo, while SUNU Assurance went up by 30.00 per cent to close to 39 kobo, per share.

On the other side, Pharma-Deko led the decliners table by 16.67 per cent to close at N1.65, per share. Okomu Oil Palm followed with a loss of 10.00 per cent to close at N127.80, while Juli Plc declined by 9.89 per cent to close at 82 kobo, per share.

Overall, a total turnover of 1.331 billion shares worth N22.700 billion in 24,039 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.785 billion shares valued at N19.614 billion that exchanged hands previous week in 27,822 deals.

The Financial Services Industry (measured by volume) led the activity chart with 886.121 million shares valued at N10.058 billion traded in 11.563 deals; thus contributing 66.60 per cent and 44.31 per cent to the total equity turnover volume and value respectively.

Consumer Goods Industry followed with 107.592 million shares worth N4.472 billion in 3,833 deals, while the Conglomerates Industry traded a turnover of 102.192 million shares worth N198.077 million in 1,008 deals.

Trading in the top three equities; Access Bank, Guaranty Trust Holding Company (GTCO) and Fidelity Bank (measured by volume) accounted for 316.758 million shares worth N4.353 billion in 3,476 deals, contributing 23.80 per cent and 19.18 per cent to the total equity turnover volume and value respectively.


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