Rounding up the week, equities trading on the floor of The Nigerian Stock Exchange ended on a positive note. Total point added to market trading points today was 85Bpts as it relapsed at 35,488.81 from 35,188.97. Safe NSE-Consumer Goods that lost, all other observed market index closed above their respective opening points. On this ground, Week to Date, the lead activities index added 138Bpts while lost points within the month reduced to 4Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N103.362 billion, same as 85Bpts above the opening value. Meanwhile, trading activities for the day produced 22 advancers and 14 lagers. NSEASI Year to Date gain is now 32.05% while the Market Capitalization Year to Date gain stood at N2.986 trillion same as 32.30% above the year’s opening value.
In our opinion, several factors are responsible for the dwindling nature of the market in recent times, but most of all, is the fragile economic state which had signaled utmost caution to the investing public. According to the report by the MPC in its recently concluded meeting, the popularly celebrated economic recovery could relapse in a more protracted recession if strong and bold monetary and fiscal policies are not activated immediately to sustain it. On this ground, smart traders seem to have resulted to playing the market within a very short trading gaps to avoid prolong stay in any equity of their choice.
On the strength of the above, we maintained that traders should tread cautiously around the market arena. Possible profits should be accumulated while strict care should be exercised against risky investment decisions. All trading rules should be followed to the later. Safe Trade.
By: Jeariogbe Tunde Segun