As the bear takes a stroll through the market arena, the performance index of the Nigerian Bourse gave up 30Bpts. Today’s lost point swiftly swallowed the 25Bpts added on the last trading day of last week. Contributing more to the negative performance is the delay experienced on the NSE trading terminal from the early hours of trade till around 12pm.
Today’s trading activities produced 10 advancers and 17 lagers. NSEASI YtD return is currently -4.45% while the Market Capitalization YtD return stood at –N450.941 billion.
As mentioned above, the market activities were distorted for the better part of today’s trading hours. On the strength of this we can safely ascribe the low volume traded on all equities to the technical delay. Although, we expected the market to experience mix performance through this week.
Please note that we maintained our position that traders should pay more attention to their trades and seriously mind their stops (up (+) or down (-)). We have also noticed heightened cautiousness on the path of the traders, which has systematically weakened the market.
We are of the opinion that the result of the ongoing Fed Rate Increase campaign in the US will impact our market either way depending on the outcome in September. This couple with the expected Headline inflation index for the month of July seems to be responsible for the sluggishness being experienced in Nigerian equities market.
Volume Index for today’s activity is 0.32 while buy volume and sell volume is estimated at 40% and 60% respectively.