Trading activities on the floor of The Nigerian Stock Exchange took off the new month on a bearish note as a total of 105Bpts were lost and the market trading points closed at 32,760.83. Safe NSE-Insurance that added points other observed market indices swerved. See the index movement table for details.
Value lost by the market capitalization of the listed equities during today’s trading activities was N120.227 billion, same as 105Bpts above the opening value. Meanwhile, trading activities for the day produced 17 advancers and 29 lagers. NSEASI Year to Date gain is 21.94% while the Market Capitalization Year to Date gain stood at N2.084 trillion same as 22.55% above the year’s opening value.
If the technical analysis law which says “History repeats itself” is anything to go by, then traders need to be cautious with the current market moves. Before now, we have confirmed the similarities in the trend played out by the market in the past two months of 2017 and 2016. Please note that in July 2016, precisely from the first week of the month, the market closed red and maintained a downward trend through the month. We have also confirmed that the downtrend ruled the market through the rest of 2016. It will be interesting to know that, the month of July was equally negative even in 2015 WoW.
Although we are not saying categorically, that the bull is finally exiting the market arena for the rest of 2017, we believed that traders should play cautiously around the market arena to avoid bull trap. Traders are advised to base investments only on half year earnings expectations. Playing very short term may also be paused for now as such trading strategies may fail should the trend repeat itself. Safe Trade.