Maintaining recovery move, the lead activities index of the Nigerian Stock Exchange journeyed another 59Bpts through the positive zone. All observed market indices added points as shown in the index movement table. Both Week to Date and Month to Date market returns are positive at 136Bpts each.
Value gained by the market capitalization of the listed equities during today’s trading activities was N57.403 billion, same as 58Bpts above the opening value. Meanwhile, trading activities for the day produced 27 advancers and 13 lagers. NSEASI Year to Date loss is -2.82% while the Market Capitalization Year to Date loss stood at –N219.624 billion same as 2.38% below the year’s opening value.
Although sustainability cannot be readily ascertained, the market is clearly in a new trend (uptrend). In our opinion, investors’ confidence was boosted by good numbers of first quarter financial reports that clearly confirmed that business terrain in the country is currently friendlier than the previous year.
Please note that, no good market will maintain uptrend consistently without engaging in interval pull down actions, such adjustment are normally due to profit taking activities which is an opportunity for investors who missed out in the move to join and benefit from the positive improvements. In other words, investors should avoid participating in any panic exit, although it is intelligent to trade all fundamental news accordingly.
We maintained that opting for growth oriented listed equities will improve portfolios value largely 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.
By: Jeariogbe Tunde Segun