Further entertaining the bears, equities trading on the floor of The Nigerian Stock Exchange opened the new week with 38Bpts loss. Thus, it ended the day’s trade at 34,873.07 from 35,005.57. Safe NSE-Banking Index and NSE-Insurance Index that gained, other observed market indices dipped. Month to Date, total loss points stood at 178Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N46.480 billion, same as 39Bpts below the opening value. Meanwhile, trading activities for the day produced 14 advancers and 18 lagers. NSEASI Year to Date gain is now 29.76% while the Market Capitalization Year to Date gain stood at N2.774 trillion same as 30.01% above the year’s opening value.
Although several fundamental factors had been linked to the prolonged bearish stay around the market arena, we are of the opinion that, leading from the long bullish moves, most equities’ share prices attained prices above their respective 2-3 years high thus, becoming more expensive and risky to play. In other words, trading trends usually identified with such equities were lost, giving traders less reason to trade.
Adding to the pressure around the market are several right issues currently begging trading funds for patronage. Please understand that the funds patronizing the offers remains tied down, and will have negative effects on market liquidity until the rights are listed or become tradable.
On the strength of the above, we maintained that traders should tread cautiously. Possible profits should be accumulated while strict care should be exercised against risky investment decisions. All trading rules should be followed to the later. Safe Trade.
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