Thrusting further north, the lead performance pointer of the Nigerian Stock Exchange added another 63Bpts to close at 25,409.06 point. Aside NSE-Premium and NSE-Lotus II that shed marginal points, other observed market indices closed green, as shown in the index movement table. Week to Date, the market gained 97Bpts while 241Bpts had been lost in the month of February.
Value gained by the market capitalization of the listed equities during today’s trading activities was N55.138 billion same as 63Bpts above the opening value. Meanwhile, trading activities for the day produced 13 advancers and 15 lagers. NSEASI Year to Date loss is -5.45% while the Market Capitalization Year to Date loss stood at –N453.327 billion same as 4.90% below the year’s opening value.
Before now, the market had been struggling on the then support turned resistance point (that is, the Santa Claus rally kick off point), but after today’s move, it clearly stood above the line and looks healthy enough to maintain the point. Technically, this point automatically becomes a support for the market. In other words, the points should be seen as the landing point where the market find succor.
Form our observation; the overall impact of the earnings season on the market trend is positive. Traders seem to be gathering confidence in few selected equities based on dictates of market rumor.
We have also observed that the number of active equities on the floor of the Nigerian Bourse kept reducing by the day, in our opinion, this is due to the selective strategy adopted by the investing public in recent time. We therefore recommend a cautious tread around the market arena.