Equities trading on the floor of The Nigerian Stock Exchange ended on a green note as the lead indicator’s trading points build by 69Bpts and closed as 28,286.43 point. Aside NSE-Lotus that shed points other observed market indices gained. Meanwhile, after the positive performance, Week to Date market returns exited loss region by 62Bpts. Month to Date returns on the other hand remained positive at 978Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N66.765 billion, same as 69Bpts above the opening value. Meanwhile, trading activities for the day produced 27 advancers and 19 lagers. NSEASI Year to Date gain is 5.25% while the Market Capitalization Year to Date gain stood at N531.853 billion same as 5.75% above the year’s opening value.
It is impressive that market finally resolved to an outing with the bull, this is coming after the emergence of two major positive and negative fundamental factors. The fact that MPC resorted to holding all rates unchanged simply means that business environment had fairly nothing to react to. Another strong fundamental factor is the released report from the office of the National Bureau of Statistics which confirmed a shrink economy even in the first quarter of 2017. We are of the opinion that market is yet to fully play out reactions to these fundamental factors.
On the strength of the above, we strictly recommend a cautious tread around the market arena. Nevertheless, we maintained that opting for growth oriented listed equities will largely improve portfolios’ value. In other words, highly leveraged, cyclical and speculative companies that survived the recession (on the strength that the current economy recovery signs will not fail) should be considered for better performance. Safe Trade.