SAT 12 JUNE, 2021-theGBJournal- In line with Cordros Research analysts expectation, sentiments remained broadly positive for the second consecutive week, as investors continued to cherry-pick stocks with attractive dividend yields ahead of H1-2021 dividend declarations.
Notably, foreign investors’ interest in OKOMUOIL (+20.7%) and bargain-hunting in STANBIC (+6.1%), FLOURMILL (+5.3%), DANGCEM (+4.6%) and DANGSUGAR (+4.4%) spurred the weekly gain. The All-Share index closed the week 1.1% higher at 39,157.29 points. Consequently, the MTD return printed 1.9%, while the YTD loss moderated to -2.8%.
A total turnover of 1.058 billion shares worth N12.831 billion in 17,854 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.082 billion shares valued at N9.548 billion that exchanged hands last week in 17,933 deals, according to NGX Exchange data.
Activity levels were mixed, as trading volume declined by 2.2% w/w, while trading value rose by 34.4% w/w. Sectoral performance was broadly positive, as the Industrial Goods (+2.4%) index led the gainers’ chart, followed by the Oil and Gas (+1.4%), Consumer Goods (+1.1%) and Banking (+0.9%) indices. The Insurance (-4.1%) index emerged as the week’s sole loser.
The Financial Services Industry (measured by volume) led the activity chart with 714.677 million shares valued at N5.951 billion traded in 9,718 deals; thus contributing 67.53% and 46.38% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 97.181 million shares worth N3.297 billion in 3,006 deals. The third place was ICT Industry, with a turnover of 75.987 million shares worth N583.715 million in 679 deals.
Trading in the top three equities namely Zenith Bank Plc, Sterling Bank Plc and Fidelity Bank Plc (measured by volume) accounted for 261.344 million shares worth N2.712 billion in 2,862 deals, contributing 24.70% and 21.13% to the total equity turnover volume and value respectively
In the week ahead, Cordros say they expect investors to continue cherry-picking stocks ahead of the H1-2021 dividend declarations.
‘’With the recent development in the FI market, we are approaching an inflexion point; we, therefore, see scope for increased buying interest from risk-averse investors.’’
Cordros advised that investors take positions in only fundamentally justified stocks ‘’as the unimpressive macro story remains a significant headwind for corporate earnings.’’
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