Equities trading on the floor of The Nigerian Stock Exchange maintained bullish move as it improved trading point by 71Bpts and closed at 34,375.60. It was a mixed performance amongst the observed market indices as shown in the index movement table. Week to Date market return shifted to 167Bpts while total points added within the current month is now 1,653Bpts.
Value gained by the market capitalization of the listed equities during today’s trading activities was N83.314 billion, same as 71Bpts above the opening value. Meanwhile, trading activities for the day produced 25 advancers and 27 lagers. NSEASI Year to Date gain is 27.91% while the Market Capitalization Year to Date gain stood at N2.640 trillion same as 28.55% above the year’s opening value.
Today’s positive performance has reduced the gap between the market trading points and the 2015 highest high. Recall that the market opened the year 2015 at 34,657.1 traded the high of 35,843.4 before closing at 28,642.3. As we speak, the current trading point is only 82Bpts away from 2015 opening point.
Considering the fact that the gains were achieved within two trading months, it will be safe to adopt short term trading strategies, as this will guide against bull trap.
Traders should also keep in mind that the half year earnings season is around the corner. Equities with half year incentives hold better chances of riding on the current bullish moves and should be considered in respective trading baskets.
In our opinion, heightened cautiousness is necessary in any one directional market. This is because almost all equities will ride on the wings of market sentiments/forces, thereby increasing investment risk and in-turn build returns on every position. In such market scenario, all tradable points (entry and exit) are lost and recommendations are purely based on market rumors and individual expectations. Safe Trade.