Rounding up the last trading day of January, equities trading on the floor of the Nigerian Stock Exchange gave up 34Bpts as it closed at 44,343.65 from 44,493.79. It was a mixed performance amongst the observed market indices as shown in the index movement table. Week to Date, market is up by 130Bpts while the total points added to market trading points through the month was 1,595Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N53.820 billion, same as 34Bpts below the opening value. Meanwhile, trading activities for the day produced 23 advancers and 30 lagers. NSEASI Year to Date gain is now 15.95% while the Market Capitalization Year to Date gain stood at N2.286 trillion same as 16.80% above the year’s opening value.
The fact that the market pulled back at this point posed a threat to the bullish run, although it is enough to take today’s loss lightly as it could turn from the next trading day, we felt it is necessary to sensitize traders and investors at large on the need to watch out for the start of a new trend.
As noted in our various reports, it is expected that investors will re-shuffle portfolios in an attempt to be well placed for possible shocks during the earnings season. Recall that, January 2018 trend is exceptional when compare to normal trends in the past four Januaries. Thus, investors are expected to be cautious and more sensitive; all market news and fundamentals should not only be well analyzed, but general reactions to such should also be confirmed through technical analysis tools.
Investments should therefore be based on the possibility of equities releasing improve figures and pay cash or scrip dividend. Please understand that the possibilities of low dividend yields are on the high side, especially now that most equities are trading above their respective book values. Safe Trade.