Trading activities on Nigerian Bourse got a heavy blow today as traders react negatively to the unimpressive statistics released by the most capitalized equity- Dangote Cement. As a result of this action, 140Bpts were lost today. It was a mixed performance among the observed market indices. Meanwhile, the negative performance pushed up the lost points for the week to 167Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N122.343 billion same as 140Bpts below the opening value. Meanwhile, trading activities for the day produced 9 advancers and 13 lagers. NSEASI Year to Date loss is -7.61% while the Market Capitalization Year to Date loss stood at –N653.870 billion same as 7.07% below the year’s opening value.
Judging by the All Share Index performance, the market is currently trading at the oversold region (RSI). Ordinarily, any gain from this point will signal a buy from the Relative Strength Index (RSI), same apply to Bollinger Band. But in reality, the fundamentals- in the name of earnings- currently dictates the market direction, and going by what had been witnessed so far, traders are not falling for dividend payment, rather strict analysis of the released figures are considered. It should also be noted that, good numbers of investors had been in most stocks for the past 4-5 months before now, hence the carefree attitude to cash dividend.
We are of the opinion that, taking advantage of the dropping prices by watching for fairly low price to reposition is an intelligent investment decisions. Meanwhile, accessing the fixed income market will keep investors going at the moment.
Comment here