For the third consecutive time within the week, trading activities on the floor of The Nigerian Stock Exchange marginally shifted to the green territory. Total point added today was 24Bpts as NSEASI closed at 42,258.78 from 42,158.32. Safe NSE-Consumer Goods index that shed points, other observed market indices ended in the positive territory. Due to today’s gain, Week to Date loss reduced to 89Bpts while total lost point in the current month is now 470Bpts. See the index movement for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N36.049 billion, same as 24Bpts above the opening value. Meanwhile, trading activities for the day produced 24 advancers and 17 lagers. NSEASI Year to Date gain is now 10.50% while the Market Capitalization Year to Date gain stood at N1.555 trillion same as 11.43% above the year’s opening value.
Weeks after the previous market trend ended, the new trend is now more pronounced; without much argument, the lead performance index NSEASI is now in a downtrend. Presently, the risk of trading for short term profit within the trend is on the high side, since bearish sentiment is still very strong and recovery efforts are being challenged by the current earnings season.
One notable thing at the moment is the sharp traders’ reactions to market fundamentals. In other words, heightened cautiousness is needed while navigating the market. Recall that, most blue chip recently attained prices largely above most analysts’ fair values, this will definitely result in low earnings yield and in-turn induce negative reactions from traders.
Nevertheless, the ongoing price correction is enough reason for taking positions. Thus, we are of the opinion that, buying in tranches will help in averaging down entry prices in case prices go against traders. Safe Trade.