Starting off the new week as MPC meeting commences, the lead performance index of The Nigerian Stock Exchange gave up marginal 12Bpts as it closed at 28,078.30 point. It was a mixed performance among the observed market indices as shown in the index movement table. So far, the market grew trading points by 897Bpts in the month of May.
Value loss by the market capitalization of the listed equities during Friday’s trading activities was N12.127 billion, same as 12Bpts above the opening value. Meanwhile, trading activities for the day produced 27 advancers and 17 lagers. NSEASI Year to Date gain is 4.48% while the Market Capitalization Year to Date gain stood at N459.901 billion same as 4.97% above the year’s opening value.
Judging by the market hesitancy within the last two trading days, one can safely assume a calculated attempt to sustain the recent points added to the lead indicator’s trading points. It is indeed a dicey situation especially when we consider the steepness of the trend that brought the market to its present height. One major factor that will determine trend from tomorrow is the outcome of the monetary policy committee meeting which will be concluded on Tuesday 23rd May, 2017. Popular expectation is that the committee will leave all rates unchanged.
On the strength of the above, we strictly recommend a cautious tread around the market arena. Nevertheless, 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.