By Peter Egwuatu
As the stock market enters the second half of the year, H1’24, investors are eyeing the earnings reports, interim dividends from banks and other companies amidst the on-going recapitalisation exercise across banking and other sectors.
This is as the price correction and profit taking on the Nigerian Exchange Limited, NGX, is creating buy opportunities for discerning investors in the midst of ongoing portfolio rebalancing ahead of second half of 2024.
Financial analysts have stated that activities will, as expected, be dominated by primary market activities of banks and other companies raising funds to recapitalise their businesses.
Meanwhile, last week, investors remained cautious with market activities remaining slow as companies entered their close periods ahead of H1’24 earnings releases. Accordingly, the the Nigerian Exchange Limited, NGX All-Share Index, ASI declined by 4 bases paints Week on Week W/W to close at 100,022.03 points from 100,057.49 points the previous week.
The Year-to-Date, YtD return ended at 33.8% with market capitalisation closing on Friday at N56.580 trillion from N56.691 the previous week. Trading activity showed that the total traded volume and value decreased by 14.6% W/W and 37.6% W/W, respectively.
However, sectoral performance was broadly positive, as the Banking gained 3.9%, Oil and Gas 3.0%, Insurance 2.3% and Industrial Goods 0.2%, while the Consumer Goods Index declined 0.7% to close lower.
Commenting on the market development, analysts at Cordros Research said: “As the half-year earnings season approaches, we believe investors will look for signs of improvement following the broadly lackluster Q1-24 corporate earnings. Consequently, we expect mixed market performance in the coming week, with bargain hunting balanced by intermittent profit-taking activities.”
In their own outlook, analysts at InvestData Consulting stated: “We expect mixed sentiments and profit taking that will create new entry opportunities for discerning market players ahead of earnings reporting season kicking off any moment next week, as portfolios repositioning continue, while taking advantage of pullbacks to buy into value.
“This is amid the volatility and pullbacks that add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”
Source: Vanguard
tipobet porn