For the second time within the week, equities trading on the floor of The Nigerian Stock Exchange dipped. Total point lost through the day was 164Bpts as it ended at 32,928.44 point from 33,477.89. As in yesterday, all observed market indices closed in the red. Week to Date the market is down by 261Bpts while Month to Date return is still in the green zone by 1,163Bpts. See index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N190.001 billion, same as 164Bpts below the opening value. Meanwhile, trading activities for the day produced 14 advancers and 45 lagers. NSEASI Year to Date gain is 22.53% while the Market Capitalization Year to Date gain stood at N2.139 trillion same as 23.14% above the year’s opening value.
After the two days pull back actions, we expect the bull to return (from the next trading day). In other words, we believed that the probability of the bull taking the lead on Friday is high. The best way to respond to this expectation is to take positions in equities of interest at the early hours before other traders wake up to this reality. Please note that adopting short term trading strategy in the current market is best, as the risk of long and medium term is on the high side.
In our opinion, heightened cautiousness is necessary in any one directional market. This is because almost all equities will ride on the wings of market sentiments/forces, thereby increasing investment risk and in-turn build returns on every position. In such market scenario, all tradable points (entry and exit) are lost and recommendations are purely based on market rumors and individual expectations. Safe Trade.
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