By: Jeariogbe Segun
Equities trading on the floor of The Nigerian Stock Exchange opened the new week on a bearish note as it swerved further by 83Bpts to end the day’s trading activities at 25,587.09 from 25,802.54. Safe the NSE-Consumer Goods that inched north by 2Bpts, other observed market indices dived south as shown in the index movement table. Month to Date, the market is down by 173Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N74.251 billion same as 83Bpts below the opening value. Meanwhile, trading activities for the day produced 8 advancers and 25 lagers. NSEASI YtD loss is -4.79% while the Market Capitalization YtD loss stood at –N428.728 billion.
Having lost its long standing support to bearishness, traders are left with no other choice than to play cautiously until the market identify new support and build tradable pattern around same. On the strength of this, we are of the opinion that, safe trading could be achieved by engaging in long term trading alone.
So far, no financial statistics had been able to stimulate investors’ confidence, as most released earnings are unimpressive. Undoubtedly, listed equities are reflecting the nation’s unhealthy economic situation. The manufacturing industries operated through a very tight business regime in 2016, cost of running businesses are quite on the high side despite very tight regulations. Nevertheless, we expect fair figures from servicing firms, especially the banking institution. Invest accordingly.