Treading further down the correction line, equities trading on the floor of The Nigerian Stock Exchange gave up 116Bpts and closed the day’s trade at 44,389.85 from 44,912.53. While NSE-Consumer Goods and NSE-Oil&Gas gained other observed market indices swerved. Thus, total point lost in the two trading days of the new week is now 156Bpts while Month to Date returns adjusted down to 1,607Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N187.250 billion, same as 116Bpts below the opening value. Meanwhile, trading activities for the day produced 14 advancers and 43 lagers. NSEASI Year to Date gain is now 16.07% while the Market Capitalization Year to Date gain stood at N2.293 trillion same as 16.85% above the year’s opening value.
In our opinion, the market is currently going through a correction line; we believed that such move is partly the result of panic selling/profit taking activities and partly the effect of investors reshuffling their respective portfolios in expectation of full year earnings reports. Recall that we mentioned that, it is necessary for intelligent investors to reshuffle their respective trading baskets and avoid possible negative reactions to unimpressive results, since the gallant bull already assisted various equities trade above their book values.
Nevertheless, it should be noted that the price correction will surely give room for more entry. In other words, traders may watch out for more short term play.
As noted in our previous report, we expect the market to stage a defense of the points gained so far, although this will not be achieved without series of interval pull backs (such as we observed today). Please note that a major determinant to market direction in the first quarter of the year is the full year earnings season. Thus, it is recommended that traders play with heightened cautiousness. Safe Trade.
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