Taking the second bow to profit taking activities, the lead performance index of The Nigerian Stock Exchange dived south by 241Bpts as it closed the first trading day of the week at 27,492.41 point. Aside NSE-Premium Index that gained, other observed market index closed below their respective opening prices. Month to Date, market returns remained green at 678Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N234.636 billion, same as 241Bpts below the opening value. Meanwhile, trading activities for the day produced 10 advancers and 41 lagers. NSEASI Year to Date gain is 2.38% while the Market Capitalization Year to Date gain stood at N263.968 billion same as 2.85% above the year’s opening value.
The fragility of the market became more glaring today as more traders panicked off their respective positions in response to the red day experienced on Friday. Recall that we constantly recommend cautious tread around the market arena as we believed that the sudden bullish run can lead to what is technically referred to as “Bull Trap”.
Nevertheless, if a continuation pattern is noticed as the market pull down, positioning around the end of the south drive is highly recommended.
Please understand that, the fact that good numbers of listed equities posted impressive three months financials has not change, hence, we maintained that opting for growth oriented listed equities will largely improve portfolios’ value. In other words, highly leveraged, cyclical and speculative companies that survived the recession (on the strength that the current economy recovery signs will not fail) should be considered for better performance. Safe Trade.
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