Riding on the wings of gained points recorded by Dangote Cement, the All Share Index of the Nigerian Stock Exchange added 74Bpts. All major market indexes observed dived south including NSE30-Index and NSE-Banking Index. By this move, Week to Date market returns is back to green zone while total lost points for the month of March is 63Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N63.794 billion same as 74Bpts above the opening value. Meanwhile, trading activities for the day produced 16 advancers and 9 lagers. NSEASI Year to Date loss is -6.34% while the Market Capitalization Year to Date loss stood at –N535.938 billion same as 5.80% below the year’s opening value.
Save the cosmetic gain induced by Dangote Cement and perhaps Nestle Foods, the lead performance index would have dipped. In other words, market seems to be bearish in reality.
During today’s trading activities, investors played out the ruling trend on Guaranty Trust Bank. The share price was traded down by 4.87%, this is despite the recently announced N1.75 cash dividend. Should the price of this equity dipped further, we recommend strategic positioning (in tranches). We are of the opinion that such investment strategy will yield short profit before the qualification date for the cash dividend.
Without mixing words, we strictly recommend a cautious tread around the market arena. We believe that the market will respond more to economic situation that earnings. We also foresee more funds flying to fixed income market in a way to reduced investment risk. Kindly be informed that returns on 91 days T-Bill is currently around 13%+. Safe trade.
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