Maintaining bearish move, equities trading on the floor of The Nigerian Stock Exchange gave up 43Bpts of its trading points at it closed at 40,249.29 from 40,425.07. Safe NSE-Insurance and NSE-Industrial Goods that added points, other observed market indices lost. Week to Date, market is down by 55Bpts while the total lost points in the current month is now 247Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N63.674 billion, same as 43Bpts below the opening value. Meanwhile, trading activities for the day produced 19 advancers and 34 lagers. NSEASI Year to Date gain is now 5.25% while the Market Capitalization Year to Date gain stood at N970.027 billion same as 7.13% above the year’s opening value.
Technically, the market is currently considered bearish, as we have constantly noted in our report, market has overstayed sideway trend and have patiently received succor from the just defied support, should the market trade far south away from the said support, possibilities are; that the point will stand as a strong resistance against market return to the positive territory.
At the conclusion of the MPC meeting today, eight members voted in support of retaining all monetary policy parameters, in other words, the meeting ended retaining all status quo. This combined with the positive headline Inflation, the 1.95% growth in the GDP in the first three month of 2018, and the outstanding improvement in the oil price which have translated to a whooping build up of the nation’s reserve are strong enough fundamentals for the market. In our opinion, major threats against investment at the moment is the upcoming national election while wavering foreign capital inflows alongside other uncertainties further threatened investors’ confidence.
Although this is a challenging period it is our belief that taking advantage of dropping prices will position investors right during market recovery. In other words, traders are expected to consider staying around the market for long/medium term as most short term trade will fail given the current anxiety around the market arena.
Another investment option is selecting equities of trade by identifying companies with half year incentives as the market approaches the half year earnings season. Safe Trade.
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