Daring further green zones, equities trading on the floor of The Nigerian Stock Exchange closed the first day of the week on a bullish note. Total points added was 70Bpts. Aside NSE-Industrial Goods Index that shed marginal 2Bpts, other observed market indices gained. Month to Date, trading point is up by 253Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N63.153 billion, same as 70Bpts above the opening value. Meanwhile, trading activities for the day produced 26 advancers and 12 lagers. NSEASI Year to Date loss is -1.69% while the Market Capitalization Year to Date loss stood at –N114.674 billion same as 1.24% below the year’s opening value.
Market seems determined to hold investors that lost out in the current bullish move longer than we anticipated. In situations such as this, investors are likely to get impatient, anxiety that the bear will not win in a long time might induce premature positions. Please note that joining a running train might get traders involved in what is technically referred to as “Bull Trap”.
We are of the opinion that, except decisions are purely based on known fundamentals; new entries should only be considered after pullback actions. It will also be safe to consider equities with interim dividend policy during half year earnings season in respective trading baskets.
We maintained that opting for growth oriented listed equities will largely improve portfolios’ value in the current market mood. 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.