The Nigerian stock market started this week on a positive note as investors increasingly respond to impressive full year 2016 earnings already trickling into the market.
More on the buyers’ list at the local bourse are speculators willing to raise equity wagers particularly on value stocks most of which are expected to release their results soonest at market.
Zenith Bank Plc on Monday kicked-off the earnings season of banks with an impressive result for the period ended December 31, 2016. The bank stock attracted more deals as it became the most active on that day.
Some other full year results that have been released at the market include: Forte Oil Plc, Nigerian Breweries Plc, Africa Prudential Registrars Plc, Transcorp Hotels Plc, and Dangote Cement Plc.
With this development, more stock analysts remain positive in their outlook this week that the market will still close in the green.
“We expect this week’s trading to be dictated by investors’ reaction to corporate earnings as the earnings season gets fully underway,” said Vetiva Capital analysts in their breakfast report.
Also, United Capital analysts said noted that, “As the release of Zenith Bank Plc report marks the commencement of inflow of banking earnings numbers, we expect speculative play around other banks’ results to stoke a mixed to bullish close to equities market this week,”
For research analysts at SCM Capital Limited, they expect “renewed interest in the market as more results are released in anticipation of dividend declaration following the impressive earnings release by Zenith Bank.”
Despite that the Nigerian bourse traded mixed last week as investors showed varied sentiments across key sectors, the Nigerian stock market still gained 0.34 percent as the value of listed equities increased by N30billion.
The Nigerian Stock Exchange (NSE) All Share Index (ASI) and market capitalisation which opened last week at 25,164.91 points and N8.709 trillion respectively closed at 25,250.37 points and N8.739 trillion.