In a smart recovery of lost grounds, equities trading on the floor of The Nigerian Stock Exchange soar, as it added 117Bpts to its trading point, thereby rounding up the day’s trade at 35,773.98 from 35,358.57. Safe NSE-Insurance and NSE-Oil&Gas that shed points, other observed market indices closed in the green territory. Meanwhile, both Week to Date and Month to Date returns are now in the positive region by 97Bpts each. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N142.989 billion, same as 117Bpts above the opening value. Meanwhile, trading activities for the day produced 31 advancers and 14 lagers. NSEASI Year to Date gain is now 33.11% while the Market Capitalization Year to Date gain stood at N3.057 trillion same as 33.17% above the year’s opening value.
Although there is need for confirmation, one can safely link today’s positive performance to investors’ preparation for the nine months earnings season. Until this is fully established, maintaining cautiousness is recommended.
As the market maintained dwindling status with dominating strength from the bear, we have identified two supports for the market. The first, though weak is sighted around 34,200.80 while the second lays around 32,276.30. Please understand that although the market is expected to find recovery strength around these points, market fundamentals may change directions accordingly. In other words, the point should only be used in setting exit and entry points.
On the strength of the above, we maintained that traders should tread cautiously around the market arena. 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.