Trading activities on the floor of the Nigerian Stock Exchange nosedived as the lead performance index NSEASI swerved by 241Bpts, closing at 41,708.15 from 42,737.89. All observed market indices ended on a bearish note. By this performance, total lost point during the new week increased to 329Bpts while Month to Date loss is now 594Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N369.535 billion, same as 241Bpts below the opening value. Meanwhile, trading activities for the day produced 15 advancers and 40 lagers. NSEASI Year to Date gain is now 9.06% while the Market Capitalization Year to Date gain stood at N1.358 trillion same as 9.98% above the year’s opening value.
Investor’s panicking seemed to have reached the heaven as seen in today’s market performance. Given the recovery attempt observed on the last trading day of last week, one would have at least expected the market bearishness to slowdown; rather, a huge loss was suffered through today’s trading activities. On the strength of these, we strictly recommend heightened cautiousness around the market arena.
As noted in our various reports, it is expected that investors re-shuffle portfolios in an attempt to position rightly for possible shocks during the next earnings season. Thus, investors are expected to be cautious and more sensitive; all market news and fundamentals should not only be well analyzed, but general reactions to such should also be confirmed through technical analysis tools.
Investments should therefore be based on the possibility of equities releasing improve figures and payment of cash or scrip dividend. Please understand that the possibilities of low dividend yields are on the high side, especially now that most equities are trading above their respective book values. Safe Trade.