In a gallant north ride, equities trading on the floor of The Nigerian Stock Exchange today attained a new year high, as it added 137Bpts to its trading points and closed at 38,494.43 from 37,974.58. Safe NSE-Insurance and NSE-Oil & Gas that shed points, other observed market indices gained. After today’s positive performance, both the Week to Date and Month to Date market returns are now 208Bpts each. See index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N181.048 billion, same as 137Bpts above the opening value. Meanwhile, trading activities for the day produced 32 advancers and 11 lagers. NSEASI Year to Date gain is now 43.24% while the Market Capitalization Year to Date gain stood at N4.159 trillion same as 44.98% above the year’s opening value.
Seeing the strong bullish start posted from the first week of the month, one could expect similar trends as seen in both December 2015 and 2016. Should same trend repeats itself, traders should be aware of the bearish January that followed in the reference years for timely investment decisions.
In our opinion, all traces of seemingly treats to market recovery may have been fully erased and traders are now responding to the nation’s improved economic indicators. Government efforts to improve the global ease of doing business along with the fairly stable translational rate should further enhance investments for rest of the year.
Please note that, aside the bright economic indicators recently ruling the market, other factors that will determine market direction for the rest of the year include the yuletide and accounts round ups of equities with December financial year end. On the strength of the above, we are of the opinion that traders should opt for bullish side from the next trading day. Safe Trade.