For the first time after several bullish moves, equities trading on the floor of The Nigerian Stock Exchange pulled back, shedding 116Bpts and ended the day’s transaction at 32,200.38. It was a mixed performance among the observed market indices as shown in the index movement table. Week to Date, activities is up by +264Bpts while Month to Date return is now +916Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N130.677 billion, same as 116Bpts below the opening value. Meanwhile, trading activities for the day produced 38 advancers and 22 lagers. NSEASI Year to Date gain is 19.82% while the Market Capitalization Year to Date gain stood at N1.884 trillion same as 20.38% above the year’s opening value.
Going by the performance seen today, one can assume the presence of the bull around the market arena. The assumption remains valid until performance on the next trading day proves otherwise. Evidently more traders opted for profit taking activities in selected equities especially among the highly capitalized ones. Another fact that confirmed that the bull may not have completely exited the market is that, points shed is low compared to the high points scored by the bull before now.
We are of the opinion that playing the market with heightened cautiousness is very necessary. Nevertheless, traders may start watching out for positions against the half year results provided the pull down continues for the rest of the week, else, play smartly.
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.