At resumption from the workers’ day “May Day” holiday, traders politely welcomed the new month as the lead performance pointer NSEASI added 80Bpts and closed at 25,965.18 point where it ended the month of April. All observed market indices ended today’s move on a positive note. Being the first trading day in the month and in the new week, both Week to Date and Month to Date returns are same at 77Bpts each. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N61.995 billion, same as 70Bpts above the opening value. Meanwhile, trading activities for the day produced 22 advancers and 12 lagers. NSEASI Year to Date loss is -3.38% while the Market Capitalization Year to Date loss stood at –N272.028 billion same as 2.94% below the year’s opening value.
A careful look at the current pattern formed by the lead performance index- NSEASI, it was observed that the market is in a new trend (uptrend) as recoveries after the last three pull back sessions successfully attained a higher high. As can be seen from the chart, after today’s positive performance, a new high is achieved. Meanwhile, trying to ascertain market direction based on the past moves when such points were achieved, it will be safe to assume profit taking induced pull back action any moment from the next trading day. In our opinion, this is normal for a recovering market.
We believe that opting for growth oriented listed equities will improve portfolios value largely in the current market mood. 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 as business environment in the country gets friendlier. Safe Trade.