Completing nine consecutive positive trading days, equities trading on the floor of The Nigerian Stock Exchange ended the day’s activities in the positive territory. Total point added was 41Bpts, having moved from 33,301.43 to 33,436.61. NSE-BNK, NSE-INS and NSE-Oil&Gas remained down while other observed market indices gained. Week to Date market trading point is up by 53Bpts while Month to Date return is currently 96Bpts. See index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N46.588 billion, same as 41Bpts above the opening value. Meanwhile, trading activities for the day produced 25 advancers and 19 lagers. NSEASI Year to Date gain is 24.42% while the Market Capitalization Year to Date gain stood at N2.277 trillion same as 24.62% 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.