For the second consecutive time within the week, trading activities on the floor of the Nigerian Bourse ended south by 13Bpts. Aside HCML17-Index, HWC5-Insex and NSE Insurance Index that gained, other observed market indices shed points. Week to Date the lead performance index is down by 31Bpts while a total of 234Bpts has been lost so far in the current month. See index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N11.304 billion same as 13Bpts below the opening value. Meanwhile, today’s trading activities produced 12 advancers and 20 lagers. NSEASI YtD loss is -2.34% while the Market Capitalization YtD loss stood at –N215.520 billion.
Sellers were strong through today’s trading activities, a situation which commenced from the second trading day of the week. Going by the low volatility currently identified with the market, it is safe to assume a calculated attempt to stage a support around the current trading range. Nevertheless, if we consider the fact that NSEASI has failed such attempt more than twice between September last year and now, opting for heightened cautiousness around the market arena will not be a bad trading strategy.
On the strength of the above, we recommend calculated positions in proven fundamentally based equities. It should also be noted that joining any equity at its highest high in the past 60 trading days is likened to joining a moving train, kindly play by the trend.