Market Update

Nigerian Equities Market Update: November Dipped the Market Most after January

Equities trading on the floor of The Nigerian Stock Exchange ended the last trading day of the month with a marginal 3Bpts gain. Meanwhile, the month of November dipped the market trading points by 7.30% as it moved from 27,220.09 through the high and low of 27,592.42 and 25,188.20 respectively before closing at 25,233.42 point. In the history of the year 2016, November is the second most bearish month after January (when the market lost 16.50%).

Value gained by the market capitalization of the listed equities during today’s trading activities was N2.825 billion same as 3Bpts below the opening value. Meanwhile, today’s trading activities produced 18 advancers and 20 lagers. NSEASI YtD return is negative -11.79% while the Market Capitalization YtD loss stood at -N1.161 trillion.

Today’s gain can only be compared to short intake of breath after long and consistent run. In other words, we do not take this as a recovery sign. Compounding the situation further is the two most important festivals that will be observed in the month of December. Giving the very negative economic situation, both individual and organizations will be forced to access their respective portfolios for funds, not minding taking some losses. This is expected to depress the market further.

Technically, the market had consistently failed every attempt to stage a support and have through the month of November nosedived. Please understand that till date, no definite support has been identified, although, there are two possible points left from the current trading point (24,569.00 and 23,350.00), we cannot say categorically that the points will be respected by the bears. Thus, cautious tread and positioning in tranches remained the best investment decision.

Volume Index for today’s activity is 1.73 while buy volume and sell volume momentum is estimated at

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