Starting off the new month, equities trading on the floor of The Nigerian Bourse closed green. Aside NSE-Oil&Gas that shed 46Bpts other observed market indices treaded the lead indicator’s path. Value gain on the Market Capitalization of listed equities is N11.124 billion. See the index movement log for details.
Today’s trading activities produced 17 advancers and 16 lagers. NSEASI YtD return is currently -4.85% while the Market Capitalization YtD return stood at –N89.915 billion.
As the market waved off the nine months earnings season, investment strategies are bound to change. Identifying trending stocks for short positions and taking positions against full year financials will be the basic investment focus.
In our opinion, good numbers of equities share price are currently in the down due to the negative response received on their respective earnings. Taking advantage of such low price for short positions is an intelligent investment decision. We are of the opinion that such equities will generate several buy and sell signals before the next earnings season. Thus, identifying and playing by support and resistant points is strictly recommended.
On the other hand, investors playing by corporate numbers should position in equities with improved nine months earnings. The idea is to achieve reasonable confidence level of exiting with either cash or scrip dividend at the released of full year financials. Please note that positioning in tranches in equities of choice is highly recommended.
Volume Index for today’s activity is 0.92 while buy volume and sell volume momentum is estimated at 69% and 31% respectively.