Market Update

Nigerian Equities Market Update: 16th August, 2017

Maintaining negative trend, equities trading on the floor of the Nigerian Stock Exchange gave up 268Bpts as it rounded up the day’s transactions at 36,102.38 from 37,096.60. All observed market indices journeyed through the lead indicator’s path as none trailed the positive path. Week to Date, market had lost 549Bpts while the Month to Date loss draws closer to the red region, at +71Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N342.678 billion, same as 268Bpts below the opening value. Meanwhile, trading activities for the day produced 10 advancers and 31 lagers. NSEASI Year to Date gain is now 34.34% while the Market Capitalization Year to Date gain stood at N3.196 trillion same as 34.57% 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.

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Market Update

Nigerian Equities Market Update: 16th August, 2017

Maintaining negative trend, equities trading on the floor of the Nigerian Stock Exchange gave up 268Bpts as it rounded up the day’s transactions at 36,102.38 from 37,096.60. All observed market indices journeyed through the lead indicator’s path as none trailed the positive path. Week to Date, market had lost 549Bpts while the Month to Date loss draws closer to the red region, at +71Bpts. See the index movement table for details.

Value loss by the market capitalization of the listed equities during today’s trading activities was N342.678 billion, same as 268Bpts below the opening value. Meanwhile, trading activities for the day produced 10 advancers and 31 lagers. NSEASI Year to Date gain is now 34.34% while the Market Capitalization Year to Date gain stood at N3.196 trillion same as 34.57% 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.

Comment here