Maintaining bearish pattern, the performance pointer of The Nigerian Equities market slide further south by 72Bpts to close at 26,173.69. Aside NSE-Oil&Gas and NSE-Industrial-goods that added marginal 8Bpts, other observed market indices lost. Thus, Week to Date, NSEASI is down by 299Bpts while it has shed 384Bpts so far in November.
On the other hand, value lost recorded by the market capitalization of the listed equities is N65.605 billion same as 72Bpts from the day’s opening value.
Today’s trading activities produced 11 advancers and 27 lagers. NSEASI YtD return is currently -8.62% while the Market Capitalization YtD return stood at –N840.541 billion.
Technically, NSEASI has cracked the 61.8% Fibonacci Retracement (23,308.84, 31,121.14). Please note that the Fibonacci covers the highest and lowest trading points in 2016. Although a short intraday pull back was noticed today after the crack, it is not likely that the market will respect this line further. Nevertheless, we recommend a close watch on the next trading day. Relative Strength Index’s (RSI) buy signal (seen on 27th October, 2016) had already failed. Meanwhile, Bollinger Band signaled a buy two days back.
In our opinion, and on the strength of the contradicting positions of the indicators studied above, the best way to respond to the current situation is to play cautiously around the equities market. Undoubtedly, the weak economic fundamentals are impacting equities trading negatively, and listed equities are rightly adjusting accordingly.
Most equities are seen rushing south and most have lost major support points. This is in agreement with our earlier warning that investors should wait to position at cheaper prices while traders should allow a clear trend and play within same. Please note that, positions made outside this carries high level of risk.
Volume Index for today’s activity is 0.82 while buy volume and sell volume momentum is estimated at 31% and 69% respectively.