Market Update

Nigerian Equities Market Update: Friday, 2nd February, 2018

Rounding up the week, equities trading on the floor of The Nigerian Stock Exchange gained 40Bpts as it closed at 44,639.99 from 44,460.18. All observed market indices ended in the positive territory. Meanwhile, a total of 198Bpts was added to market trading point while the new month already increased performance by 67Bpts. See index movement table for details.

Value gained by the market capitalization of the listed equities during today’s trading activities was N64.527 billion, same as 40Bpts above the opening value.  Meanwhile, trading activities for the day produced 30 advancers and 26 lagers. NSEASI Year to Date gain is now 16.73% while the Market Capitalization Year to Date gain stood at N2.409 trillion same as 17.71% above the year’s opening value.

It is a good thing that the market closed on a positive note for the second time consecutively. Recall that we noted the danger the market pull back at a point far from the last high. We also said it is necessary for traders to wait for at least two days confirmation since the possibility of reversing position is on the high side. In other words, today’s gain has weakened the fear that the current market trend has ended. Nevertheless, heightened cautiousness is still very much necessary.

As noted in our various reports, it is expected that investors re-shuffle portfolios in an attempt to position rightly for possible shocks during the earnings season. Recall that, January 2018 trend is exceptional when compare to normal trends in the past four Januaries. Thus, investors are expected to be cautious and more sensitive; all market news and fundamentals should not only be well analyzed, but general reactions to such should also be confirmed through technical analysis tools.

Investments should therefore be based on the possibility of equities releasing improve figures and pay cash or scrip dividend. Please understand that the possibilities of low dividend yields are on the high side, especially now that most equities are trading above their respective book values. Safe Trade.

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Market Update

Nigerian Equities Market Update: Friday, 2nd February, 2018

Rounding up the week, equities trading on the floor of The Nigerian Stock Exchange gained 40Bpts as it closed at 44,639.99 from 44,460.18. All observed market indices ended in the positive territory. Meanwhile, a total of 198Bpts was added to market trading point while the new month already increased performance by 67Bpts. See index movement table for details.

Value gained by the market capitalization of the listed equities during today’s trading activities was N64.527 billion, same as 40Bpts above the opening value.  Meanwhile, trading activities for the day produced 30 advancers and 26 lagers. NSEASI Year to Date gain is now 16.73% while the Market Capitalization Year to Date gain stood at N2.409 trillion same as 17.71% above the year’s opening value.

It is a good thing that the market closed on a positive note for the second time consecutively. Recall that we noted the danger the market pull back at a point far from the last high. We also said it is necessary for traders to wait for at least two days confirmation since the possibility of reversing position is on the high side. In other words, today’s gain has weakened the fear that the current market trend has ended. Nevertheless, heightened cautiousness is still very much necessary.

As noted in our various reports, it is expected that investors re-shuffle portfolios in an attempt to position rightly for possible shocks during the earnings season. Recall that, January 2018 trend is exceptional when compare to normal trends in the past four Januaries. Thus, investors are expected to be cautious and more sensitive; all market news and fundamentals should not only be well analyzed, but general reactions to such should also be confirmed through technical analysis tools.

Investments should therefore be based on the possibility of equities releasing improve figures and pay cash or scrip dividend. Please understand that the possibilities of low dividend yields are on the high side, especially now that most equities are trading above their respective book values. Safe Trade.

Comment here