The bull firmed up grounds today as the lead performance index of The Nigerian Stock Exchange added another 385Bpts and ended at 32,578.38 point. The positive performance conveniently saw the capitalization of the listed equities to eleven trillion naira. Save HWC5-Index that shed points due to lost on Nigerian Breweries share price, other observed market indices closed on a positive note. Total point garnered in the 3 trading days of June is now 1,044BPts.
Value gained by the market capitalization of the listed equities during today’s trading activities was N417.178 billion, same as 385Bpts above the opening value. Meanwhile, trading activities for the day produced 44 advancers and 13 lagers. NSEASI Year to Date gain is 21.22% while the Market Capitalization Year to Date gain stood at N2.015 trillion same as 21.80% above the year’s opening value.
As noted above, the equities market is currently entertaining a crazy bull; all listed equities had been impacted by the improved confidence built in investors by the bullish moves. No trader has been able to confidently point out the precise source of the excess liquidity/fundamentals driving the market. In all sincerity, the moves cannot in any way be linked to the past three month’s financials or the expected half year financials.
The big question here is, have we received such crazy bull in our market before? If you ask me, the answer is yes. This move confirmed the technical law that says “History repeats itself”. In other words, smart investors are expected to treat the current bull after studying the impact (during and after) its emergence in the past. Nevertheless, in our opinion, cautiousness must be the watchword of every intelligent investor. All forms of greed should be avoided, to avoid being trapped.
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.