Posting another recovery attempt, equities trading on the floor of The Nigerian Stock Exchange gained 39Bpts. The positive move came at a time the National Bureau of Statistics reported that the Headline Inflation index increased by 18.72% YoY in January 2017. The increase is 0.17% above the 18.55% YoY increase reported in December 2016.
The performance rubbed off on most observed market indexes safe NSE-Pensions, NSE-Banking and NSE-Insurance index that swerved. Week to Date, the lead index is down by 83Bpts while Month to Date loss adjusted down to 348Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N33.948 billion same as 39Bpts above the opening value. Meanwhile, trading activities for the day produced 10 advancers and 14 lagers. NSEASI Year to Date loss is -6.49% while the Market Capitalization Year to Date loss stood at –N549.815 billion same as 5.95% below the year’s opening value.
As comforting as today’s move was, it does not guarantee the end of the current negative trend. In fact, the move was posted at reduced momentum. A careful observation of the gainers’ list revealed that the market got a strong push from few highly capitalized equities, such as Dangote Cement, Forte Oil and Nigerian Breweries that gained today.
On the strength of the above, we maintained our trading strategy of cautiously playing the servicing firms. We do not encourage investors to consider short/medium term positions at the moment, as long term positions stands a good chance of yielding better returns.