Dragging the month to date returns to the red territory, the lead performance pointer of The Nigerian Stock Exchange opened the new week on a bearish note. Total point lost was 36Bpts as it rounded up at 35,361.52 from 35,488.81. Nevertheless, it was a mixed performance among the observed market indices as shown in the index movement table. Please note that the market is currently trading at 40Bpts below the month opening figure. See index movement for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N44.842 billion, same as 37Bpts below the opening value. Meanwhile, trading activities for the day produced 19 advancers and 17 lagers. NSEASI Year to Date gain is now 31.58% while the Market Capitalization Year to Date gain stood at N2.41 trillion same as 31.82% above the year’s opening value.
In our opinion, several factors are responsible for the dwindling nature of the market in recent times, but most of all, is the fragile economic state which had signaled utmost caution to the investing public. According to the report by the MPC in its recently concluded meeting, the popularly celebrated economic recovery could relapse in a more protracted recession if strong and bold monetary and fiscal policies are not activated immediately to sustain it. On this ground, smart traders seem to have resulted to playing the market within a very short trading gaps to avoid prolong stay in any equity of their choice.
On the strength of the above, we maintained that traders should tread cautiously around the market arena. Possible profits should be accumulated while strict care should be exercised against risky investment decisions. All trading rules should be followed to the later. Safe Trade.