Interim dividend raises hope for Nigeria’s equities

The Nigerian equities market All-Share Index moderated week-on-week by 0.57 per cent to settle at 39,261.01 points in the just-concluded week, reverting the 0.01 per cent gain recorded the week before.

Investors’ interest appeared not to have been stimulated, as the banking sector index closed in the red, decreasing by 0.58 per cent to 376.79 points, despite the release of the positive half year 2021 financial result and the 30k interim dividend declared by Access Bank.

Other sectoral indices closed southwards save the insurance index, which closed in the green, rising by 0.79 per cent to 191.58 points.

The oil and gas, consumer goods and industrial indices plummeted by 2.96 per cent, 1.34 per cent and 0.08 per cent to 378.99, 190.07 and 1,976.72 points respectively.

Trading activity also showed that some investors took position, as prices declined, given the 23.85 per cent and 9.55 per cent increase in the volume and value of stocks traded to 1.27 billion units and N8.97bn respectively, amid the 0.97 per cent decrease in the number of deals to 18,466.

The domestic bourse index had opened the week trading session moderating by 0.40 per cent to settle at 39,326.67 points amid renewed sell pressure on blue chip stocks such as Dangote Cement, Zenith Bank, Guaranty Trust Holding Company, Access Bank and Eterna, which fell, as investors booked profits.

The downward trend continued on Tuesday, as the domestic bourse index fell by 0.27 per cent to settle at 39,219.61 points amid sustained profit taking on mid and large capitalised stocks such as Nigerian Breweries, Flour Mills of Nigeria, Oando Plc, GTCO and Zenith Bank that lowered their share prices.

This sustained bearish activity also saw the Nigerian stock market moderate further on Wednesday by 0.09 per cent to settle at 39,184.18 points, as the share prices of NB, UAC of Nigeria, FBN Holdings, Access Bank and Oando dragged the index down.

On Thursday, the domestic bourse index, however, advanced by 0.17 per cent to settle at 39,252.19 points amid renewed positive sentiment, as Access rose by 2.78 per cent  following the company’s H1 2021 financial results and the declared interim dividend of 30k.

The positive banking results spurred buying interest in other Tier-1 banking tickers such as GTCO, Zenith Bank, FBNH and United Bank for Africa. As such, their respective share prices rose by 0.18 per cent, 0.21 per cent, 0.67 per cent and 1.3 per cent.

At the close of the week’s trading session, the local bourse index revved by 0.02 per cent to settle at 39,261.01 points amid sustained positive sentiment. Thus, buying interest was notable in FMN, Lafarge Africa, GTCO, Africa Prudential and Neimeth International Pharmaceuticals, leading to a rise in their share prices.

However, stakeholders see a positive outlook this week, given the investors’ strategic positioning last week.

“In the new week, we expect the equities market index to trade positively, as investors’ position ahead of the qualification period for interim dividend payment,” analysts at Cowry Asset Management stated.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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