Market Update

Nigerian Equities Market Update: The Bull Establishes Stand as NSEASI Adds 105Bpts

Equities trading on the floor of The Nigerian Stock Exchange today recorded the second outing with the bull as it added 105Bpts to its trading points and closed at 27,900.44. All observed market indexes agreed with the bull as shown in the index movement table. Meanwhile, Week to Date market return is still red at 104Bpts while the total points garnered during the current month stood tall at 828Bpts.

Value gained by the market capitalization of the listed equities during today’s trading activities was N100.511 billion, same as 105Bpts above the opening value. Meanwhile, trading activities for the day produced 25 advancers and 13 lagers. NSEASI Year to Date gain is 3.82% while the Market Capitalization Year to Date gain stood at N397.661 billion same as 105% above the year’s opening value.

Against popular assertion of the bear dominating market activities, the bull took a quick hold on market events starting from the previous trading day. From all indications, market is bent on maintaining its newly found trend (bullish trend). In our opinion, there is need for the repetition of the profit taking induced pull back action as this will better establish the bullish pattern.

Nevertheless, traders in one positions or the other should watch cautiously for exit points while those who lost out in the bullish move should patiently await another pull back and position accordingly.

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.

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