Taking a short negative breath, the lead performance index of the Nigerian Stock Exchange gave up 40Bpts as it closed at 44,912.53 from 45,092.83. Safe NSE-Insurance and NSE-Industrial Goods that added 42Bpts and 17Bpts respectively, other observed market indices closed in the negative territory. Month to Date lead activities index is in the green by 1,744Bpts. See index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N64.590 billion, same as 40Bpts below the opening value. Meanwhile, trading activities for the day produced 26 advancers and 26 lagers. NSEASI Year to Date gain is now 17.44% while the Market Capitalization Year to Date gain stood at N2.480 trillion same as 18.23% above the year’s opening value.
Finally, profit taking activities was fully reflected on market performance, this marks the third attempt in seven trading days. Surprisingly money flow remained strong and focused on its journey through the positive territory despite price drop. This suggested possible continuation of uptrend.
After the long bullish moves that pushed up good numbers of equities above their respective fundamental strength, intelligent investors are expected to holistically screen equity of choice alongside its fundamental strength. The essence is to confirm if expected earnings will justify the current market price.
As noted in our previous report, we expect the market to stage a defense of the points gained so far, although this will not be achieved without series of interval pull backs (such as we observed today). Please note that a major determinant to market direction in the first quarter of the year is the full year earnings season. Thus, it is recommended that traders play with heightened cautiousness. Safe Trade.