Analysts from securities companies are optimistic of stock market uptrend this week on Dangote Cement Plc shares buy-back programme and positioning for 2021 full year financial results.
Analysts at Cowry Assets Management Limited say they expect the equities market index to further rise as investors buy more shares, especially Dangote Cement Plc, as it rounds up the shares buy-back programme in the new week.
In the short term, analysts at Cordros Securities Limited expect the bulls to retain dominance in the market given positioning for 2021 full year dividends as institutional investors continue to search for clues on the direction of yields in the fixed income (FI) market, saying, “notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”
However, analysts at Afrinvest Limited stated that, “in the coming week, we expect market performance to be a mix of profit-taking and bargain hunting activities.”
Last Week’s Trading Activities
Sentiments remained broadly bullish in the second trading week of the year as investors continued to cherry-pick stocks with attractive dividend yields ahead of 2021 full year dividend declarations.
The All-Share Index rose by 1.37 per cent week-on-week (W-o-W) to close at 44,454.67 points. Similarly, market capitalisation gained N323 billion W-o-W to close at N23.951 trillion. Pertinently, bargain hunting in BUA Foods, Dangote Cement, Guinness Nigeria and International Breweries drove the weekly gain.
Given the bullish sentiment, most sector gauges tracked closed in green. Particularly, the NGX Oil & Gas, NGX Banking and the NGX Industrial indices rose by 1.74 per cent, 0.75 per cent and 3.56 per cent respectively to close at 360.41 points, 412.30 points and 2,086.99 points respectively. The announcement of Dangote’s Tranche II share buy-back programme also contributed to the rise in industrial index. On the flip side, the NGX Consumer Goods index and the NGX Insurance indices lost 1.54 per cent and 4.35 per cent to close at 193.23 points and 558.72 points respectively.
However, market breadth for the week was negative as 33 equities appreciated in price, 35 equities depreciated in price, while 88 equities remained unchanged. BUA Foods led the gainers table by 24.06 per cent to close at N66.00, per share. Transnational Corporation of Nigeria (Transcorp) followed with a gain of 16.33 per cent to close at N1.14, while Jaiz Bank went up by 15.25 per cent to close to 68 kobo, […]