Chiefly enhanced by the 4.71% lost in the share price of the most capitalized listed equity on the floor of the Nigerian Stock Exchange- Dangote Cement, the lead performance index dived south by 1.80%. This is higher than our expectation of a mild lost in today’s trading activities.
Today’s trading activities produced 11 advancers and 25 lagers. NSEASI YtD return is currently -4.41% while the Market Capitalization YtD return stood at –N443.460 billion.
The candlestick formation generated by today’s trading activities can be described as a wide spread down bar which appears after a number of gaining days. Such are normally viewed as market’s attempt to mislead as many traders as possible. They usually appear when there is a weakness in the background, (that is, in a weak market). The implication of such, is that traders are strategically held longer than anticipated while panic traders bow out of the market, counting their losses.
It is worth noting however, that the market would have posted a mild swing towards the south safe the negative performance of few highly capitalized equities. Thus, understanding your equity of choice by trend and playing within same is highly recommended. We also advise that traders should actually pay more attention to their respective trades and seriously mind their stops (up (+) or down (-)).
Volume Index for today’s activity is 0.79 while buy volume and sell volume is estimated at 3% and 97% respectively. Comparing this to yesterday volume statistics, we may conclude that traders were taking uncalculated caution on a fundamental news. The position should be well defined during the next trading day.