Dipping further south, equities trading on the floor of The Nigerian Stock Exchange slashed 110Bpts off the lead performance pointer’s trading points. Aside NSE-Industrial Goods that added marginal 1Bpt, other observed market indices swerved. Week to Date, the market had lost 214Bpts same as Month to Date. See the index movement table for details.
Value lost by the market capitalization of the listed equities during today’s trading activities was N162.181 billion, same as 143Bpts above the opening value. Meanwhile, trading activities for the day produced 10 advancers and 31 lagers. NSEASI Year to Date gain is 20.60% while the Market Capitalization Year to Date gain stood at N1.922 trillion same as 20.79% 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.