Taking side with the bears, the Lead Performance Index of the Nigerian Stock Exchange took 95Bpts towards the south. Aside NSE-Insurance that added marginal 7Bpts, other observed market indexes shed points as shown in the index movement table. NSEASI WtD is same as MtD returns at negative 115Bpts.
Today’s trading activities produced 20 advancers and 22 lagers. NSEASI YtD return is currently -2.21% while the Market Capitalization YtD return stood at –N229.927 billion.
If the market is to be judged by today’s slide, we will assume a failure of the nine days attempt to register a support. Nevertheless, it will be safe to await a confirmation of this assertion during the next trading day. Although market fundamentals are weak, we are of the opinion that if the market takes more negative steps, good numbers of buy signals will be generated.
On the other hand, today’s negative performance may also be connected to negative nine months earnings expectations. Traders seem to be assuming an unimpressive performance from listed equities, given the very harsh economic situation where they operated through the period.
We recommend timely position in the shares of the followings; Guaranty Trust Plc, Access Bank, Nascon, African Prudential, Wema Bank, Wapco, Fidson, Transcorp and Flour Mills. We expect the equities to yield ample profit in medium term.
Volume Index for week’s activity is 0.81 while buy volume and sell volume momentum is estimated at 9% and 91% respectively.