Capital market analysts have said that the positive trend recorded in the equities market for the greater part of last week may continue into this week.

Their prediction was based on the expected financial results from major quoted companies on the Nigerian Stock Exchange.

It is expected that the year-end results of a few companies may begin to come to the Exchange this week.

According to the analysts, it is usual for investors to position themselves at a time like this, in anticipation of expected dividends from some of these companies.

Analysts from Vetiva Capital Market Limited, in their report for the week, noted that the equities market usually recorded increased activities in the periods preceding the release of full year financial results.

“We expect that there would be positioning by investors ahead of the release of the full year 2011 results, and this is likely to stir activities on the stock market,” they said.

They also noted that this was evident from increased activities recorded in the market last week, as the market capitalisation of the listed equities increased by N46bn or 0.7 per cent from N6.534tn on Monday, to close at N6.580tn.

Also, the NSE’s All-Share Index gained 0.7 per cent or 145.92 basis points to close at 20,877.64 points last Friday, up from 20,731.72 points on Monday.

The NSE-30 Index, which measures the performance of the 30 top stocks on the NSE, recorded a 1.5 per cent rise from 928.22 points to 942.24 points.

Other market indicators also rose during the week, with the NSE Banking Index recording the highest gain for the week as it rose by 5.7 per cent or 15.29 basis points to 283.45 points up from 268.16 points recorded at the beginning of the week.

The Managing Director, Lambeth Trust and investment Limited, Mr. David Adonri, also expressed optimism that there might be increased buying activities in the equities market this week.

He noted that the signals received from investors last week pointed to the fact that investors may likely begin to buy might from the market, adding that this would boost activities.

He said, “You know that the equities market, like any other typical market has been going up and down due to some reasons, however, it is important to note that as results begin to be released by companies, there would be increased activities.

“Also, it is important to note that the macro economical environment is becoming a bit more favourable to the equities market, and this may be another reason that could boost the market in the next few weeks.”

He, however, noted that following the results, investors might be involved in profit taking activities.

Source: Punch/Udeme Ekwere