As investors gain N656bn
By Nkiruka Nnorom
Investment analysts have indicated that the expectation of release quarter three(Q3) earning reports by quoted companies will sustain the positive sentiment in the market.
They posited that though the market might be dominated by bears but that would be tempered by bargain hunting in anticipation of the results releases.
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Investors had gained N656 billion last week despite the shortened trading session. The bullish momentum in the local bourse had gained steam as the All Share Index (ASI) rose above the 40,000 to close at 40,221.17 points, the highest level since February 21, 2021.
Specifically, the gains recorded on the last two trading sessions (Wednesday: 1.9% and Thursday: 1.6%) drove the market to the green territory as the index rose 3.2 percent higher.
The gains were driven by investors’ buying interest in Dangote Cement Plc (+14.3%), FBN Holdings Plc (+7.3%), Nestle Nigeria Plc (+5.7%), Flour Mills of Nigeria Plc (+2.8%), Okomu Oil Palm Plc (+2.6%), and GTCO (+2.2%).
In their review of the market, analysts at Cowry Asset Management noted that the market would close in the positive territory again as investors take position ahead of the nine month financial result released. “Corroborating, analysts at Cordros Capital said: “We expect the bears to dominate market performance in the this week, as investors cash out on the gains across bellwether stocks this week. However, we expect this to be tempered by bargain hunting activities from early birds ahead of the Q3’21 earnings season.”