Equities trading on the floor of The Nigerian Stock Exchange resumed the new week on a positive note as a total of 50Bpts were added to the lead index’s trading points, thereby closing at 32,620.84 from 32,459.17. It was a mixed performance amongst the observed market indices as shown in the index movement table. Overall activities remained red for the month of July as Month to Date returns maintained negative region to the tune of 150Bpts.
Value gained by the market capitalization of the listed equities during today’s trading activities was N53.567 billion, same as 48Bpts above the opening value. Meanwhile, trading activities for the day produced 26 advancers and 15 lagers. NSEASI Year to Date gain is 21.38% while the Market Capitalization Year to Date gain stood at N1.993 trillion same as 21.56% above the year’s opening value.
Though it is quite encouraging that the recovery moves has now roamed the market arena for three trading days, judging by the marginal gains posted within the said days and the low numbers of equities in the advancers’ log, it will be safe to conclude that good numbers of traders are yet to agree with the bull. In other words, heightened cautiousness seems to be the undertone of market activities at the moment. On the strength of the above, we maintained that traders should approach the market with utmost cautiousness. Investments should rather be based on the expected half year earnings. Equities with half year cash dividend policy should top in trading baskets.
Although we are not saying categorically, that the bull is finally exiting the market arena for the rest of 2017, we believed that the last positive trend identified with the market before now may have ended, and a new trend had since commenced. Thus, the risk of playing short term has increased as long as the new trend has not fully established tradable patterns. Safe Trade.