Leading from the previous week, trading activities on the floor of the Nigerian Stock Exchange commences the first trading day of the week on a positive note. Total point added during today’s activities was 12Bpts, as it closed on 33,301.43 point. It was a mixed performance amongst the observed market indices as shown in the index movement table. Month to Date, the market added 56Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N13.708 billion, same as 12Bpts above the opening value. Meanwhile, trading activities for the day produced 23 advancers and 26 lagers. NSEASI Year to Date gain is 23.91% while the Market Capitalization Year to Date gain stood at N2.230 trillion same as 24.12% above the year’s opening value.
Although the market closed on a green territory, leading sectors were bearish. For example, the banking subsector pulled down in response to short profit taking activities. Similarly the insurance and Oil and Gas subsectors were both down.
As long as the second quarter earnings season is concerned, the Banking Subsector and Oil and Gas subsector are both key points of investment. From history, the former has equities such as Access Bank, UBA, Guaranty Trust Bank and Zenith Bank with high probability of interim cash dividend. While the later has Total oil, with high chances of interim cash dividend. In our opinion, the pull back action seen on these sectors will be temporary. We maintained that they remain point of investment during the season.
Kindly follow the last three months financials to effectively project half year cash dividend expectations. Safe Trade.