Starting off the new week, equities trading on the floor of The Nigerian Stock Exchange ended in the positive territory. Total point added today was 149Bpts as NSEASI closed at 45,513.93 from 42,876.23. It was generally a green day as all observed market indices also ended on a positive note. Today’s gain alone singlehandedly wiped off all lost point suffered in the month of March, as Month to Date returns stepped 42Bpts into the positive axis. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N229.091 billion, same as 149Bpts above the opening value. Meanwhile, trading activities for the day produced 32 advancers and 25 lagers. NSEASI Year to Date gain is now 13.78% while the Market Capitalization Year to Date gain stood at N2.022 trillion same as 14.86% above the year’s opening value.
Stylishly, the market seems to have retraced into a new trend (uptrend). This fact can easily be noticed with technical tools. A carful look at market performance in recent time revealed that higher lows (that is, it has recovered more than once before the last low) had been generated in recent times (See NSEASI daily movement chart). Although this was achieved on weak momentums, the overall pattern established the commencement of a new trend. Right now, the questions that urgently beg for answer are; will this last? Can it stand investors’ reaction to expected earnings?
Although religiously, faith is a must ingredient that requires you to believe before you see, in our opinion, seeing before you believe might be a more reliable approach while playing around the market during this earnings season. In other words, playing the short happy/sad investors’ mood at the release of financials will go a long way in reducing investment risk.
We maintained that traders should tread cautiously around the market arena. Safe Trade.