Starting up the week, equities trading on the floor of the Nigerian Stock Exchange dipped, shedding 119Bpts and ended the day’s trade at 25,207.07 point. Aside NSE-Oil&Gas that added 52Bpts, other observed market indices ended south as shown in the index movement table. Month to Date activities remained in the red by 121Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N104.821 billion, same as 119Bpts below the opening value. Meanwhile, trading activities for the day produced 14 advancers and 18 lagers. NSEASI Year to Date loss is -6.20% while the Market Capitalization Year to Date loss stood at –N524.977 billion same as 5.68% below the year’s opening value.
Today’s performance was a straight negative drive that ended directly on a support line. Presently market has two near support points; the first is around 25,203.6 while the second lies around 24,698.0 point. Although the fact that the bear braked right on the first line is impressive as it may imply that the market will gather strength from there on the next trading day, but, the force with which it arrived at this point is quite alarming and has reduced the confidence of recovery around the point.
On the strength of the above, we maintained that traders should play cautiously around the market arena, opting for long positions looks good at the moment. Nevertheless, playing short term positions in few equities are likely to yield some profits, though with low probability of success.
In our opinion, traders may consider equities such as Zenith Bank, FBNH, Access Bank, Fidson Healthcare, African Prudential, and perhaps Nahco and Flourmills in their respective trading baskets. Safe Trade.