Equity investors position ahead of dividend earnings, gain N811bn

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Equity researchers have said that the stock market will continue on a positive trajectory this week after six weeks of consecutive negative performance was halted following repositioning by investors in anticipation of dividend declaration by corporates.

They, however, said that the prospect of higher yields in the fixed income market could taper the expected rally.Financial Vanguard’s analysis of the week’s transactions shows that the equities market capitalization rose to N56.323 trillion during the week from N55.512 trillion in the previous week, indicating a 1.45 percent increase as corporates continue to publish their impressive first quarter earnings releases and the commencement of the dividend earnings season.

Particularly, investors’ interest in FBN Holdings Plc , Guaranty Trust Company Plc , United Bank for Africa Plc and MTN Communication Nigeria Plc drove the positive market sentiment. Trading activity was also mixed with the volume of traded shares advancing by 5.6 percent Week-on-Week to 1.94 billion units, while traded value fell by 4.7 percwbt WoW to N32.64 billion.

They said: “Our outlook stays positive as we anticipates the current trend of gains in the market to continue, driven by the commencement of the dividend earning season as corporates announce dividend qualification dates.“Also, with the gradually seeming uncertain outlook for the alternative investment market where yields are expected to tank paltrily, there exist entry opportunities emerging in the equities space due to the gradual recovery of the market.

 

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