Equities trading on the floor of The Nigerian Stock Exchange ended the last trading day of the week with a marginal gain of 4Bpts despite increasing profit taking activities. It was a mixed performance among the observed market indices as shown in the index movement table. Total points added through the five trading day of the just concluded week was 160Bpts this in turn increased Month to Date returns to 1,462Bpts.
Value gained by the market capitalization of the listed equities during today’s trading activities was N4.398 billion, same as 4Bpts below the opening value. Meanwhile, trading activities for the day produced 25 advancers and 31 lagers. NSEASI Year to Date gain is 25.81% while the Market Capitalization Year to Date gain stood at N2.444 trillion same as 26.44% above the year’s opening value.
According to the National Bureau of Statistics, the headline inflation index increased by 16.25% YoY in the month of May, this is 0.99% below the 17.24% recorded in April. Recall that this represents the fourth consecutive time the rate reduced in 2017. We are of the opinion that this and other economic improvements such as the CBN consistent intervention in the naira translation rate against the dollar will support the financial market fundamental and help the bull stay longer.
In our opinion, heightened cautiousness is necessary in every one directional market. This is because almost all equities will ride on the wings of market sentiments/forces, thereby increasing investment risk and in-turn build returns on every position. In such market scenario, all tradable points (entry and exit) are lost and recommendations are purely based on market rumors and individual expectations. Safe Trade.