Recovering almost half of lost points during yesterday’s trading activities, the lead performance index of The Nigerian Stock Exchange NSEASI ended in the green territory. This is despite the MPC decision to maintain status quo. Total points added is 5Bpts which rounded up trading points at 28,093.30 point. It was a mixed performance among the observed market indices. Meanwhile, Week to Date, market remained down by 7Bpts while Month to Date returns is 903Bpts.
Value gained by the market capitalization of the listed equities during Friday’s trading activities was N5.186 billion, same as 5Bpts below the opening value. Meanwhile, trading activities for the day produced 23 advancers and 18 lagers. NSEASI Year to Date gain is 4.53% while the Market Capitalization Year to Date gain stood at N465.088 billion same as 5.03% above the year’s opening value.
Judging by the market hesitancy within the last three trading days, one can safely assume a calculated attempt to sustain the recent points added to the lead indicator’s trading points. It is indeed a dicey situation especially when we consider the steepness of the trend that brought the market to its present height. One major factor that will determine trend from tomorrow is the outcome of the monetary policy committee meeting which will be concluded on Tuesday 23rd May, 2017. Popular expectation is that the committee will leave all rates unchanged.
On the strength of the above, we strictly recommend a cautious tread around the market arena. Nevertheless, we maintained that opting for growth oriented listed equities will largely improve portfolios’ value. In other words, highly leveraged, cyclical and speculative companies that survived the recession (on the strength that the current economy recovery signs will not fail) should be considered for better performance. Safe Trade.