Riding on the wings of positive outing by the most capitalized listed equities on the floor of the Nigerian Stock Exchange Dangote Cement, the lead performance index of the equities market gained 297Bpts. Since most traders takes their lead from performance seen on the trading platform, the positive impact rubbed off on other active equities as traders hurriedly took positioned in them.
Today’s trading activities produced 25 advancers and 13 lagers. NSEASI YtD return is currently -0.78% while the Market Capitalization YtD return stood at –N89.801 billion.
As mentioned in our Tuesday report, the bullish engulfing pattern was confirmed on Wednesday while the continuous effect was felt during today’s trade. It should be noted however, that the 8.59% gained by Dangcem pushed the market faster than the strength of the bull currently running the market. Nevertheless, we expect the bull to sustain presence at least for another trading day.
We foresee more funds looking the side of the equities market due to the high inflation figure and declining GDP growth rate reported yesterday by the National Bureau of Statistics. This we expect will continue until rates in the fixed income market takes care of the effect on its trading instruments yields.
Please note that we maintain our position that traders should pay more attention to their trades and seriously mind their stops (up (+) or down (-)). This is will help in avoiding a bull trap situation. Investment greed should be avoided at all cost.
Volume Index for today’s activity is 0.87 while buy volume and sell volume is estimated at 100% and 0% respectively.