Equities trading on the floor of The Nigerian Stock Exchange ended in the negative region as the lead performance pointer NSEASI yielded 84Bpts of its trading points to the bear. Safe NSE-Oil&Gas that added marginal point, other observed market indices closed below their respective opening points. By today’s negative performance, total lost points in May increased to 143Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N124.863 billion, same as 84Bpts below the opening value. Meanwhile, trading activities for the day produced 11 advancers and 32 lagers. NSEASI Year to Date gain is now 6.37% while the Market Capitalization Year to Date gain stood at N1.125 trillion same as 8.27% above the year’s opening value.
Reading market performance through technical charts, we observed that due to today’s relatively high loss, the market is doing a sharp return to the previous support line. Making the picture somehow unimpressive is the full candlestick that represented today’s activities. Should we rely on this candle to forecast possibilities during the next trading day, a higher percentage will be given to bearish investors. Please note, should this play out and the market records another bearish day, there may be a breakout of the said support.
According to the National Bureau of Statistics, the Headline Inflation figure previously scheduled for release on the 17th May, 2018 will be made available by 9.am tomorrow 15th May, 2018. In our opinion, the index will come below the last figure, hence, we expect a positive impact on the market performance (should investors react to the rate at all). After this index, the next expected economic index is the first quarter 2018 GDP figures.
Other dictating market fundamentals are; the release of the 2018 budget and the election year. Nevertheless, we advice against panic decisions, rather investors should take long term positions in growth stocks.