Trading activities on the floor of the Nigerian Bourse ended the day on a green note as the lead performance index added 46Bpts to close the day at 25,418.08 point. All other observed market indices gained, safe NSE-Lotus II and NSE-Industrial Goods that shed marginal points. Week to Date, the market is up by 71Bpts while Month to Date return is now positive 35Bpts. See index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N40.440 billion same as 46Bpts above the opening value. Meanwhile, trading activities for the day produced 18 advancers and 14 lagers. NSEASI Year to Date loss is -5.42% while the Market Capitalization Year to Date loss stood at –N450.205 billion same as 4.87% below the year’s opening value.
Confidence seems to be improving around the market arena in recent times; two major factors responsible for this are the value recovery of the nation’s currency against the US Dollar and the reported reduction in the nation’s headline inflation figure. Meanwhile, the nature of earnings received will determine how far the above mentioned factors will build investors’ confidence.
Ordinarily, most active equities are quite attractive at the moment, given the beaten and battered prices most of them are currently trading. Some highly capitalized equities such as 7-Up Bottling Company, Guinness, Forte Oil, Nestle Foods are all selling below their 52wks high and could be considered, provided one is sure that the economic situation will maintain recovery move.
We therefore maintain our position that investors should play cautiously around the market arena.
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