Boosted by the high cap securities, equities trading on the floor of The Nigerian Stock Exchange soared, as it added a whooping 340Bpts and ended at 36,740.77 point. All observed market indices closed in the green territory. The three trading days observed so far in the current week added 800Bpts to market trading points while total points added in the current month is now 1,094Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N416.259 billion, same as 340Bpts above the opening value. Meanwhile, trading activities for the day produced 31 advancers and 17 lagers. NSEASI Year to Date gain is 36.71% while the Market Capitalization Year to Date gain stood at N9.246 trillion same as 36.94% above the year’s opening value.
It is a good thing that the market is responding positively to half year earnings season. We are of the opinion that investors should start observing positions maintained since 2014 as the break even points of such investments are around the corner. Care should be taken to avoid any form of greed especially in equities that have returned in cash dividend within the period of investment.
Technically, the relationship between price and 3 points simple moving averages (8,24.51) is currently bullish for both short and midterm. Nevertheless, on Bollinger Band, NSEASI closed above the upper band by 17.0%, in fact it has been above the upper band four trading days prior. In such situation, investors with low risk appetite are expected to exit positions in anticipation for profit taking activities. Please understand that market may attempt more positive zones, especially when the full nature of the candlestick representing today’s trade is put into consideration. Safe Trade.