For the second time in a row, equities trading on the floor of The Nigerian Stock Exchange dipped, as it gave up 225Bpts and ended at 37,096.60 from 37,950.96. All observed market indices dived south. Thus, Week to Date market returns switched to negative region to the tune of 288Bpts while Month to Date gains adjusted down to 348Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N294.475 billion, same as 225Bpts below the opening value. Meanwhile, trading activities for the day produced 11 advancers and 35 lagers. NSEASI Year to Date gain is now 38.04% while the Market Capitalization Year to Date gain stood at N3.539 trillion same as 38.28% above the year’s opening value.
In our recent reports, we have consistently warned of the fragility of the market in responding swiftly to any fundamental news regardless of the weight, thus, we recommended heightened cautiousness around the market arena. Although one can still partially view the market as responding to profit taking activities, we are of the opinion that other key factors might also be responsible for the negative performances.
First of such is the winding up of the half year earnings season, others are; the plan by the Federal Inland Revenue and States to track the high net worth individuals, the ongoing political tension in the US, and the North Korea missile threats. We are of the opinion that informed investors should also start factoring into their respective investment plans, possible effect of the upcoming political season (presidential/gov. election) in the country. Please understand that, as far as this seems (1st quarter of 2019), the preparation is already on.
We therefore maintained that traders should play cautiously around the market arena. Considering positions for profit taking at the moment might be a safe move. Safe Trade.