Stock market: here is the analysts’ point of view this week

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The Nigerian stock market, which had started this new month on a slightly positive note, redirected to negative at the start of this new week as investors cautiously approach the street of customs ahead of the half-year (H1) results of companies expected this this month.

As companies announce their closed periods in preparation for the half-year (H1) results, this should further catalyze the market’s journey north as investors position themselves for the interim dividend.

The market which posted its best half-year performance (H1) in five years had last week reversed the bearish sentiment seen the previous week, closing on a positive week (WoW).

During the week ended July 1, the market posted a positive return of +0.24% or a gain of N67 billion in three (3) trading sessions of gains against two (2) days of losses, driven by good deals in banking and insurance stocks despite profit taking in consumer goods, oil & gas and industrial stocks.

Also Read: Conoil Leads Stock Market to Negative Start to New Week

Here’s the analysts’ view this week

GTI Research analysts, who acknowledged the domestic market closed positive last week despite mixed investor sentiment, said they expect cautious trading to continue this week in the local market. .

According to United Capital research analysts, “we expect bargain hunting to continue as investors eagerly await the first half (H1) 2022 earnings season and look to take high yield positions.” Yet , we maintain that the broader equity market will remain on a bearish trajectory pending the release of H1 2022 results,” they added.

In their opinion, Vetiva research analysts, who also observed that market activity started calmly last week with minimal trading in the first trading session of the month, expect further mixed trading sessions this week “as investors continue to trade cautiously amid some bargain-hunting activity.” ”.

In addition, Lagos-based Meristem research analysts who noted positive momentum in the market last week also believe that the current attractive level of prices, especially financial services tickers, was the main reason for the record bargain hunting.

“Overall, we expect buyer interest to persist this week, which will bring the market to a positive close,” Meristem research analysts said.

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