Yielding the profit takers’ call, equities trading on the floor of The Nigerian Stock Exchange released 12Bpts of its trading points today, and ended at 33,926.70. It was a mixed performance among the observed market indices as shown in the index movement table. Week to Date market returns shifted south to 595Bpts while Month to Date returns is now 1,267Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N14.311 billion, same as 12Bpts below the opening value. Meanwhile, trading activities for the day produced 20 advancers and 30 lagers. NSEASI Year to Date gain is 23.67% while the Market Capitalization Year to Date gain stood at N2.247 trillion same as 24.25% above the year’s opening value.
Fundamentally, the market is expected to receive more boosts from the just signed 2017 budged by the acting president Professor Yemi Oshinbajo. Since the news emerged after the trading hours of today, we expect reactions from the next trading day.
Meanwhile, today’s negative performance was purely due to profit taking activities. On the other hand technical pattern generated by today’s move is a reversal pattern; ordinarily, one should assume some days of price adjustments, but for the weak pull back seen today, despite long bullish stay around the market arena, it will be safe to wait for confirmation on the next trading day.
In our opinion, heightened cautiousness is necessary in every one directional market. This is because almost all equities will ride on the wings of market sentiments/forces, thereby increasing investment risk and in-turn build returns on every position. In such market scenario, all tradable points (entry and exit) are lost and recommendations are purely based on market rumors and individual expectations. Safe Trade.