For the third consecutive time within the week, equities trading on the floor of The Nigerian Stock Exchange ended in the red by 33Bpts and closed at 32,302.32. It was a mixed performance amongst the observed market indices as shown in the index movement table. Both the Week to Data and Month to Date market loss is now 246Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N36.691 billion, same as 33Bpts below the opening value. Meanwhile, trading activities for the day produced 12 advancers and 33 lagers. NSEASI Year to Date gain is 20.20% while the Market Capitalization Year to Date gain stood at N1.886 trillion same as 20.40% above the year’s opening value.
If the technical analysis law which says “History repeats itself” is anything to go by, then traders need to be cautious with the current market moves. Before now, we have confirmed the similarities in the trend played out by the market in the past two months of 2017 and 2016. Please note that in July 2016, precisely from the first week of the month, the market closed red and maintained a downward trend through the month. We have also confirmed that the downtrend ruled the market through the rest of 2016. It will be interesting to know that, the month of July was equally negative even in 2015 WoW.
Although we are not saying categorically, that the bull is finally exiting the market arena for the rest of 2017, we believed that traders should play cautiously around the market arena to avoid bull trap. Traders are advised to base investments only on half year earnings expectations. Playing very short term may also be paused for now as such trading strategies may fail should the trend repeat itself. Safe Trade.