Snatching off four trading days bullish run, equities trading on the floor of The Nigerian Stock Exchange observed strong profit taking session. Total point lost during today’s trading activities was 261Bpts which closed the market at 33,477.89 point. All observed market indices ended in the red as shown in the index movement table. Week to Date market returns switched to red zone to the tune of 98Bpts while total gained points for the month reduced to 1,349Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N350.491 billion, same as 261Bpts below the opening value. Meanwhile, trading activities for the day produced 13 advancers and 37 lagers. NSEASI Year to Date gain is 24.57% while the Market Capitalization Year to Date gain stood at N2.329 trillion same as 25.20% above the year’s opening value.
Although today’s negative performance was purely due to profit taking activities, the move was long due. Recall that, in our last report, we noted that the market is almost returning portfolios back to 2015 opening values, under normal circumstances; such move will result to anxiety on investors’ part. The joy of recovering more than two years lost ground will automatically resulted to the fear of losing same. Please note that technically, pull back actions create opportunities for new entry.
In our opinion, heightened cautiousness is necessary in any one directional market. This is because almost all equities will ride on the wings of market sentiments/forces, thereby increasing investment risk and in-turn build returns on every position. In such market scenario, all tradable points (entry and exit) are lost and recommendations are purely based on market rumors and individual expectations. Safe Trade.