The two days recovery moves were halted today, as the bears suddenly re-appeared and slashed 44Bpts off market trading points, leaving the lead performance pointer at 35,953.44 from 36,112.37. It was a mixed performance amongst the observed market indices as shown in the index movement table. Week to Date and Month to Date market returns is currently at 126Bpts into the positive region.
Value loss by the market capitalization of the listed equities during today’s trading activities was N54.786 billion, same as 44Bpts below the opening value. Meanwhile, trading activities for the day produced 18 advancers and 22 lagers. NSEASI Year to Date gain is now 33.78% while the Market Capitalization Year to Date gain stood at N3.146 trillion same as 34.03% above the year’s opening value.
Although several fundamental factors had been linked to the prolonged bearish stay around the market arena, we are of the opinion that, leading from the long bullish moves, most equities’ share prices attained prices above their respective 2-3 years high thus, becoming more expensive and risky to play. In other words, trading trends usually identified with such equities were lost, giving traders less reason to trade.
Adding to the pressure around the market are several right issues currently begging trading funds for patronage. Please understand that the funds patronizing the offers remains tied down, and will have negative effects on market liquidity until the rights are listed or become tradable.
On the strength of the above, we maintained that traders should tread cautiously. 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.