Equities trading on the floor of the Nigerian Stock Exchange today slid as the performance pointer NSEASI dipped by 36Bpts. Aside NSE-Banking, NSE-Insurance and NSE-Industrial Goods index that ended green other observed market indices followed the lead indicator’s path as shown in the index movement table. Week to Date, market is down by 18Bpts while Month to Date loss stands at 222Bpts. Please note that 52wks market return is green at 2242Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N32.904 billion same as 36Bpts below the opening value. Meanwhile, today’s trading activities produced 18 advancers and 21 lagers. NSEASI YtD loss is -2.22% while the Market Capitalization YtD loss stood at –N205.216 billion.
Technically, the market closed above the lower Bollinger band by 20.7%. 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.
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