Starting up the new week, equities trading on the floor of the Nigerian Stock Exchange grooved with the bear. Total point slashed off the market trading points was 90Bpts. In other words, trading ended at 36,317.31 from 36,646.46. It was a mixed performance amongst the observed market indices (though more indices slide). Please note that total points gained within the month of August had adjusted down to +131Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N113.448 billion, same as 90Bpts below the opening value. Meanwhile, trading activities for the day produced 9 advancers and 30 lagers. NSEASI Year to Date gain is now 35.14% while the Market Capitalization Year to Date gain stood at N3.270 trillion same as 35.37% above the year’s opening value.
Today’s negative performance was despite the released of improved headline inflation figure from the office of national bureau of statistics. According to the report, the inflation report for July 2017 revealed reduction in the figure to 16.05 percent (year-on-year) in July 2017, compared to 16.10 percent in June 2016. This makes it the sixth consecutive decline in the rate since January 2017.
Without much argument, the market is currently struggling to stage a balance; recall that this is coming after sets of outstanding bullish moves that saw several portfolios out of years of negativity. In our opinion, the move will finally define tradable patterns in several listed equities and induced short trades around the market arena.
Nevertheless, it should be noted that market fundamentals have not changed despite the resisting nature of the market. We therefore maintained that traders should play cautiously around the market arena. All trading rules should be followed to the later. Safe Trade.