Market Update

Nigerian Equities Market Dives Further South; Sheds 195Bpts

Swerving further south, the performance pointer of the equities market gave up 195Bpts to close the day at 26,364.27 point. This has increased the Week to Date loss to 229Bpts. Similarly, Month to Date loss increased to 314Bpts. Aside HWC5-Index and NSE-Consumergoods Index that gained other observed market indices shed points. A total of N180.129 million was slashed off portfolios as the market capitalization of the listed equities closed down at N9.075 trillion from N9.255 trillion. See the index movement table for details.

Today’s trading activities produced 13 advancers and 26 lagers. NSEASI YtD return is currently -7.95% while the Market Capitalization YtD return stood at –N774.936 billion.

Playing the equities market seems to be getting more technical than it was during the earnings season; it appears equities are currently going through short market correction by giving up increases bagged during and towards the nine months earnings expectations. Currently intelligent traders might be sitting on the fence, the idea is to allow the two market lords (bull and the bear) define territories (resistance and support) this will help in simplifying trading decisions and reduce investment risk.

Although we recommend positioning for both cash and scrip dividend, we are of the opinion that this could be achieved at cheaper prices. Nevertheless, investors with high risk tolerance may start positioning in tranches from now.

Volume Index for today’s activity is 1.04 while buy volume and sell volume momentum is estimated at 6% and 94% respectively.



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