Expectation of sound earnings spurs market upsurge

By Ihesiulo Grace

28 February 2018

Business

The current upsurge in performance recorded by the equities market has been attributed by expectation of sound 2017 financial statements and rewarding corporate actions to be declared by companies for the 2017 financial year.

A stock broker who spoke on condition of anonymity to Daily Times Nigeria said that investors are desirous of taking profit in their investments through corporate actions and the sound results coming out from companies for the 2017 financial year may have given the indication that more good results are also expected to reward investors adequately.

“You can see that some stocks that even started the day on a poor note have suddenly waken up , maybe some people have seen that their results expected results would be better than expected and this has also played out in the banking sector.

The broker said that even in the banking sector, most financial institutions that are expected to deliver weak result for the 2017 financial year , have shown signs that their results would be better than expected and this has given investors the leverage to take position for anticipated good results and better than expected dividend declaration.