Trading activities on the floor of the Nigerian Stock Exchange jacked fairly north as the Lead Performance index added 18Bpts, closing at 26,373.83 point. Good numbers of the observed market indices ended north while few shed points. See the index movement table for details. By this performance, the week remained in the green while the total point lost in January adjusted to 186Bpts.
Value gained by the market capitalization of the listed equities during today’s trading activities was N16.479 billion same as 18Bpts above the opening value. Meanwhile, today’s trading activities produced 18 advancers and 13 lagers. NSEASI YtD loss is -1.86% while the Market Capitalization YtD loss stood at –N172.311 billion.
Technically, the market closed above the lower Bollinger band by 31.5%. This is neither a buy nor sell signal. Notably is the fact that the market has entered a seemingly ranging situation four trading days ago and has operated with low volatility since it attained this position. Ordinarily, this should assure the probability of increase volatility any moment from now. But when the unimpressive economic situation is put into consideration, the source of volatility boost will be doubted.
We therefore recommend a cautious play around the market arena. Investment should be based on expected earnings as short term trading looks fairly dicey at the moment.
By: Jeariogbe Tunde Segun