Equities trading on the floor of The Nigerian Stock Exchange today closed in the red territory as it gave up marginal 5Bpts and rested the day’s trade at 35,188.97 from 35,207.89. It was a mixed performance among the observed market indices as shown in the index movement table. Week to Date, performance is green by 52Bpts while Month to Date market returns is negative 89Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N6.523 billion, same as 5Bpts below the opening value. Meanwhile, trading activities for the day produced 25 advancers and 20 lagers. NSEASI Year to Date gain is now 30.94% while the Market Capitalization Year to Date gain stood at N2.883 trillion same as 31.18% above the year’s opening value.
Although several fundamental factors had been linked to the prolonged bearish stay around the market arena, we are of the opinion that, leading from the long bullish moves, most equities’ share prices attained prices above their respective 2-3 years high thus, becoming more expensive and risky to play. In other words, trading trends usually identified with such equities were lost, giving traders less reason to trade.
Adding to the pressure around the market are several right issues currently begging trading funds for patronage. Please understand that the funds patronizing the offers remains tied down, and will have negative effects on market liquidity until the rights are listed or become tradable.
On the strength of the above, we maintained that traders should tread cautiously. Possible profits should be accumulated while strict care should be exercised against risky investment decisions. All trading rules should be followed to the later. Safe Trade.