Cracking 44,000 point, the lead performance index of the Nigerian Stock Exchange roared to 44,054.72 from 43,119.00 having gathered 217Bpts to its trading points. Safe NSE-Industrial Goods index that shed points, other observed market indices ended on a bullish note. On this strength, points gained within the two trading days of the new week is now 269Bpts while Month to Date gain grew to 1,520Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N335.222 billion, same as 217Bpts above the opening value. Meanwhile, trading activities for the day produced 46 advancers and 16 lagers. NSEASI Year to Date gain is now 15.20% while the Market Capitalization Year to Date gain stood at N2.173 trillion same as 15.97% above the year’s opening value.
As observed in our report of yesterday, trading patterns do not confirm the exit of the bull, hence, we strictly recommended that traders should observe the next trading day for a clearer view of market direction.
As can be seen in today’s trading activities, the bull had fully re-surfaced, and good numbers of traders seem to be in agreement with continuation of the up-trend. As interesting as this position is, the risk of taking new positions in any listed equities has increased, thus profit expectation should be commensurate. Technically, there is no diversion between volume and price, that is, market momentum justified price actions. We are of the opinion that earnings expectations will further support the ongoing positive trend.
However, to be on a safer side, traders should explore tools that can timely identify diversion between price and volume momentum (e.g Money Flow Index), this will definitely inform the strength of the fund currently driving the market. Safe Trade.