The stock market of the Nigerian Exchange Limited (NGX) maintained its positive trend last week as foreign and high network investors continued to take position in stocks with attractive dividend yields ahead of 2021 financial year dividend declarations.
The stock market of NGX appreciated by N579billion in first-week trading in February as foreign and high network investors renewed interest in high-mid capitalized stocks on the Exchange.
The overall market capitalization gained 2.33 per cent to close last week at N25.477 trillion from N22.297trillion it opened for trading this month.
Consequently, the NGX All-Share Index gained 2.33per cent or 1,074.87basis points to close at 47,279.92basis points from 46,205.05 basis points it opened for trading in the month under review.
Consequently, the stock market Month-till-Date (MtD) and Year-till-Date (YtD) returns closed at 1.4per cent and 10.7per cent, respectively.
Notably, investors’ interest in Seplat Petroleum that gained 10.1 per cent or N80 to close at N870 per share, as Dangote Cement appreciated by 5.5per cent or N14.20 to close at N274.80 per share.
The likes of MTN Nigeria rose by 5.4 per cent or N10.30 to close at N200.30, while Presco Plc appreciated by 7.6 per cent or N6.70 to close at N94.50 per share.
Activity levels were decent, as trading volume and value rose by 23.2per cent and 2.8 per cent week-on-week ( w/w), respectively.
Performance across sectors was mixed, as the Insurance (-0.9per cent), Consumer Goods (-0.6per cent), and Oil and Gas (-0.2per cent) indices recorded losses while the Banking (+0.2per cent) index was the sole gainer. The Industrial Goods index closed flat.
However, top Courtvellie Business Solutions Plc leads the stock market top price decliners, dropping by 11.67 per cent to close at N0.53 per share, followed by Caverton Offshore Support Group Plc that dropped by 11.43 per cent to close at N1.55 per share.
International Breweries Plc also dropped by 10.17 per cent to close at N5.30 per share. Meanwhile, R.T Briscoe Plc appreciated by 40 per cent to close at N0.28 as Academy Press rose by 31.91 per cent to close last week at N1.24 per share.
In addition, Conoil Plc gained 20.73 per cent to close at N26.50 from N21.95 per share it opened for trading last week.
According to analysts at Cordros Research: “In the short term, we expect the bulls to continue to rotate their portfolio towards dividend-paying stocks ahead of 2021 financial year dividend declarations, even as institutional investors continue to search for clues on the direction of yields in the FI market.
“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”