Starting off the week, the lead activities index of the Nigerian Stock Exchange yielded to profit takers’ call. Total point lost during today’s trade was 65Bpts as it ended at 37,950.96 from 38,198.60 where it rounded up the previous week trading activities. Safe the NSE-Consumer Goods index that added points, other observed market indices lost. On this note, total point gained in the current month reduced to 587Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N85.355 billion, same as 65Bpts below the opening value. Meanwhile, trading activities for the day produced 18 advancers and 27 lagers. NSEASI Year to Date gain is now 41.21% while the Market Capitalization Year to Date gain stood at N3.833 trillion same as 41.46% above the year’s opening value.
Although, world markets are currently down due to the ongoing political tension in the US and the North Korea missile threats, we cannot confidently say that the Nigeria market is responding to same, especially since today’s pull back action is occurring after long positive moves. Nevertheless, it should be noted that market trend has been in a sideway trend for three trading days before today’s pull back (as if a resistance is in place).
As noted in our previous reports; markets with prolonged bull’s dominance (such as we are currently witnessing in our market) will easily respond to fundamental news (regardless of the weight of such news). Thus, trading with utmost cautiousness is highly recommended.
Smart traders are expected to set and follow strictly; the entry, exit, stop loss and profit points. This action, we believe, will reduce the risk of getting hooked should the market turn against trade. Safe Trade.