Stock market operators have expressed optimism that trading on the nation’s bourse would close bullish ahead of Christmas holidays as investors position for dividend paying stocks for 2021 financial year.
They said this in interviews with the News Agency of Nigeria in Lagos on Sunday, while speaking on expectations for the stock market in the new week.
Malam Garba Kurfi, Managing Director, APT Securities and Funds Ltd., said investors were expected to take position on double digit dividends yield ahead of 2021 financial year.
Kurfi expressed optimism that the stock market would close the week positive in spite of the Christmas break.
“Many investors will like to take position on those stocks that have double digit dividends yield since most of them declare and pay in the next four to five months.
“We expect to close more positively despite Christmas break,” Kurfi said.
He noted that the All-Share Index presently had recorded a negative growth of over two per cent.
Kurfi, however, anticipated that the ASI would recover and close positively for the month and the year on renewed interest, drop in volume and value of shares traded to MTN Nigeria Communications Initial Public Offering (IPO).
Kurfi noted that many investors sold their portfolio in order to participate in the offer.
Also speaking, Mr Ambrose Omordion, Chief Operating Officer, InvestData Ltd., said investors were already taking positive in the dividend paying stocks ahead of earning season for 2021 financial year.
Omordion said they were taking positive in blue chip stocks that were consistent with dividend payments.
He said that positive macroeconomic indices contributed to investors renewed confidence in the stock market in spite of the security challenges in some parts of the country.
Also, analysts at Cordros Research expressed optimism the stock market performance would close positive ahead of Santa Claus holidays.