Equities trading on the floor of The Nigerian Stock Exchange bled further as it gave up 12Bpts of its trading points to close at 25,505.91. Aside the HCML-17 Index and NSE-Industrial Goods Index that added marginal points, other observed market indices shed points. Please note that points lost within the month have increased to 630Bpts.
Value lost by the market capitalization of the listed equities during today’s trading activities is N13.266 billion same as 15Bpts from the opening value. Meanwhile, today’s trading activities produced 13 advancers and 17 lagers. NSEASI YtD return is negative -10.95% while the Market Capitalization YtD loss stood at -N1.072 trillion.
Further dampening investors’ appetite is the shrinking GDP reported by the National Bureau of Statistics this morning. Many therefore await the outcome of the MPC meeting which commenced today. The decision will go a long way in determining the equities market direction.
In response to expectations of the outcome of MPC meeting tomorrow, the market played on a low key, thereby generating a low supply candlestick pattern. Under normal circumstances such pattern indicates that smart money can mark up price on the next trading day. Giving the current situation, it is better to wait for confirmation before taking any investment decision in this regard.
We are of the opinion that dropping equities prices gives room for new positions with medium term view. In this regard, we recommend a buy on the following equities; Access Bank, Nascon, Fidson Healthcare, African Prudential, Chemical & Allied Product, Presco & Flourmills and other value stocks.
Volume Index for today’s activity is 0.48 while buy volume and sell volume momentum is estimated at 38% and 62% respectively.