The bears will maintain leadership on the Nigerian stock market this week as investors remain on the lookout for new stop rates, especially for 364-day bills.
This week, analysts at Cowry Asset Management Limited expected the stock market to trade sideways as investors remain on the lookout for new stop rates, especially for 364-day bills. Hence, bargain hunters can seize the opportunity to position in dividend paying stocks, particularly those that offer above 10 per cent dividend yield.
“Again, the way to go is to target dividend-paying stocks and fundamentally sound companies with growth prospects in 2021, looking the way of mispriced equities. This is especially given the rising oil prices that have so far supported the economy and equity market, despite the seeming improvement in the fixed income yield which had remained at negative real rate of return due to the subsisting high inflation,” Omordion said.
Bearish sentiments dominated the local bourse last week, as the bears took full advantage of the gains over the last two weeks in booking profit on bellwether stocks. Save for the last trading day of the week; the local bourse recorded losses in all of the week’s four trading sessions. Breakdown across sub-sectors tracked showed that three out of the five indices closed in green zone; the NSE Oil/Gas index led the gainers by 5.98 per cent to 285.19 points buoyed by buying pressure on SEPLAT Petroleum Development Company shares. Similarly, the NSE Banking and the NSE Consumer Goods indices rose by 0.62 per cent each to 354.25 and 561.80 points, respectively. On the flip side, the NSE Insurance and the NSE Industrial indices fell by 2.20 per cent and 1.60 per cent to 197.
The market opened for four trading days this week as the Federal Government of Nigeria declared Monday May 3, 2020 a public holiday to mark the Workers Day Anniversary. Meanwhile, a total turnover of 1.419 billion shares worth N15.918 billion in 18,459 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.441 billion shares valued at N10.883 billion that exchanged hands previous week in 19,614 deals.
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