Equities trading on the floor of The Nigerian Stock Exchange ended in the positive territory as it added marginal 10Bpts to close at 40,802.78 from 40,763.93. It was a mixed performance amongst the observed market indices as shown in the index movement table. Week to Date, activities index is down by 3Bpts while the total point lost within the month of April is now 169Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N14.035 billion, same as 10Bpts below the opening value. Meanwhile, trading activities for the day produced 26 advancers and 25 lagers. NSEASI Year to Date gain is now 6.69% while the Market Capitalization Year to Date gain stood at N1.129 trillion same as 8.30% above the year’s opening value.
Although the market gained some points today, our buy & sell pressure model indicated that the sellers were stronger in the market through today’s trading activities. While investigating this, we traced the positive end to the 5% price appreciation recorded by Nestle foods and other gains recorded by few other blue chips. Meanwhile, combining the two trading days observed so far in the new week, buyers took the lead as our model gave buyers’ pressure as 57% and Sellers’ 43%.
Going by lead performance index trading pattern, traders could be said to be mildly indecisive as the market has lingered around a narrow trading range for ten trading days (today inclusive). As noted in our previous reports, a major support had been formed right on point 40,465.80; please note that the market had sharply recovered right on this point in four (4) trading days (11th, 13th, 16th & 17th April).
Technically, the longer the market plays around such support, the higher the probability of it turning sharply away from it (up or down), depending on the market fundamentals. Nevertheless, we have noticed stronger likelihood of upward recovery. In line with the above, we maintained that traders should maintain entry in tranches into their respective equity of choice. Safe Trade.