Analysts in the Nigerian capital market have predicted that equity trading activities on the Nigerian Stock Exchange would likely close positive this week.

The analysts predicted this on the backdrop of expected rolling in of financial results of some companies, which would begin in the next few weeks.

According to the analysts, it is usual for the equities market to experience some increased activities at periods preceding the release of quarterly performance on the NSE.

This, they said, was also evident in the marginal appreciation recorded at the close of activities last week, which they observed as an improvement over the losses recorded a few weeks back.

At the close of trading last week, the market capitalisation of the listed equities went up by one per cent or N70bn to close at N6.83tn up from N6.76tn recorded a week earlier.

Similarly, the NSE All-Share Index rose by one per cent or 210.19 basis points to close the week at 21,294.77 basis points, up from 21,184.58 points recorded at the beginning of the week.

The NSE-30 Index, which measures the performance of the top 30 shares on the Exchange, also gained one per cent or 9.70 basis points from 964.14 points recorded early in the week, to 973.84 points last Friday. The Consumer Index rose by 1.7 per cent or 29.38 basis points to 303.33 points, from 298.43 points.

Analysts from FSDH Securities Limited noted in their report on Friday that activities would likely close bullish next week, as investors stake their funds in anticipation of impressive earnings expected to be released by companies in the next few weeks.

The analysts also added that their prediction was also based on the fact that most companies were likely to record impressive second quarter performance

They said, “The NSE All-Share Index closed higher for the second week running, as it appreciated marginally by 0.99 per cent to close at 21,394.77 points. This brings the year to date change of the index to 3.20 per cent. Similarly, the market capitalisation also appreciated by 0.99 per cent to close the week at N6,829.92bn (approximately US$43.81bn).

“We anticipate that the upward trend in activity observed in the market will continue next week, in expectation of improved quarterly performance of some highly capitalised companies. We note that there are strong indications that the quarterly results of some of these companies would remain impressive.”

On their own part, analysts from Meristem Nigeria Limited said that injection of funds by the Federation Account Allocation Committee for the month of June would also help to boost activities in the market.

“The key event for next week – the bond auctions, should enliven appetite, particularly if speculations on the disbursement of FAAC allocations play out,” they stated.

Source: Punch/ Udeme Ekwere