Nigerian stocks commenced the week on a positive note as the Exchange gained 0.17% in Monday’s trading session, with the banking sector spearheading the market rally.

The positive close pushed this year’s return to date to 33.34%, one of the highest in the world at the moment.

Analysts attributed the market’s positive momentum to increased investor interest in banking, insurance and industrial goods stocks.

This surge in buying activity follows recent widespread selloffs in the banking sector, presenting attractive opportunities for bargain hunters.

According to Vetiva Research analysts, the banking space witnessed significant bargain-hunting activity, indicating renewed confidence in the sector after previous weeks of sell-offs.

This sentiment propelled the overall market performance, with expectations of mixed trading sessions in the coming days as first-quarter earnings reports start to trickle in.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalization reflected the market’s upward trajectory, appreciating from 99,539.75 points and N56.296 trillion respectively to 99,665.05 points and N56.367 trillion.

In total, investors exchanged 306,620,144 shares worth N5.300 billion in 8,298 deals.

Despite the positive market sentiment, analysts from Lagos-based United Capital Research cautioned that activities in the fixed income market could continue to deter equities investments.

However, they highlighted the potential for bargain-hunting activities, particularly in the banking sector, amidst the recent bearish trend.

Overall, the Nigerian equities market’s resilient performance underscores investor confidence and optimism, driven by strategic sectoral investments and expectations of improved corporate earnings.

Nigeria’s stock market closed the trading week ended Friday, April 12, with a decline of 1.09% following a downturn influenced by notable drops in the banking, insurance, and consumer goods sectors.

This shift resulted in a loss of about N638 billion for investors during the two-day trading week, which was shortened due to public holidays for Eid Mubarak.

The Nigerian Exchange Limited’s (NGX) All-Share Index (ASI) decreased from an opening high of 103,437.67 points to 102,314.56 points.

Meanwhile, market capitalization also dropped from N58.498 trillion to N57.860 trillion over the review period.

The market’s month-to-date (MtD) performance fell by 2.15%, and the year-to-date (YtD) return is now at 36.83%.

Futureview research analysts had previously forecasted a mixed performance in the equities market as investors adjusted their positions in anticipation of upcoming corporate actions and dividend payouts.

The analysts also predicted a possible shift in focus towards the fixed income market, which could influence short-term investment decisions.

While the market faced challenges this week, analysts expect a resurgence of buying interest driven by upcoming corporate actions and earnings reports, attracting investors looking to benefit from dividend payments.

Their recommendation to investors is to consider investing in high-quality stocks with strong fundamentals for potential returns.

Zenith Bank, one of Nigeria’s leading financial institutions, is set to distribute dividends totaling N109.88 billion to its shareholders for the 2023 financial year.

The announcement was made as part of the bank’s annual report filed with the Nigerian Exchange Limited on Monday.

The dividends amount to N4.00 per share. This includes a final dividend of N3.50 per share and an interim dividend of N0.50 per share paid earlier in the year.

The proposed dividends are subject to approval by shareholders at the next Annual General Meeting (AGM) and are payable from the retained earnings accounts as of December 31, 2023.

Throughout the fiscal year, Zenith Bank’s gross earnings surged by 125.50 percent to N2.13 trillion compared to N945 billion in the previous year.

The increase in gross earnings contributed to the bank’s impressive profit after tax, which increased to N676.91 billion, an increase from N223.91 billion recorded in 2022.

This positive performance was driven by the increase in interest and similar income, which rose to N1.14 trillion from N540 billion.

However, the bank experienced a decline in net income on fees and commission, dropping to N109.31 billion from N132.79 billion in 2022, indicating a 17.68 percent decrease.

This decline was attributed to an increase in fees and commission expenses, which grew to N68.21 billion from N24.42 billion in the previous year.

Also, Zenith Bank disclosed various operational expenses incurred during the year, including insurance premiums paid to Zenith General Insurance Limited and Prudential Zenith, as well as payments for information technology services rendered by Cyberspace Network.