Maintaining positive territory, equities trading on the floor of The Nigerian Stock Exchange added 22BPts to its trading points as it rounded up at 43,609.77 from 43,513.93. Safe NSE-Banking Index that shed 33Bpts, other observed market indices closed above their respective opening points. Week to Date, market is up by 171Bpts while Month to Date returns is now 54Bpts. See index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N34.431 billion, same as 22Bpts above the opening value. Meanwhile, trading activities for the day produced 26 advancers and 29 lagers. NSEASI Year to Date gain is now 14.03% while the Market Capitalization Year to Date gain stood at N2.057 trillion same as 15.12% above the year’s opening value.
Stylishly, the market seems to have retraced into a new trend (uptrend). This fact can easily be noticed with technical tools. A carful look at market performance in recent time revealed that higher lows (that is, it has recovered more than once before the last low) had been generated in recent times (See NSEASI daily movement chart). Although this was achieved on weak momentums, the overall pattern established the commencement of a new trend. Right now, the questions that urgently beg for answer are; will this last? Can it stand investors’ reaction to expected earnings?
Although religiously, faith is a must ingredient that requires you to believe before you see, in our opinion, seeing before you believe might be a more reliable approach while playing around the market during this earnings season. In other words, playing the short happy/sad investors’ mood at the release of financials will go a long way in reducing investment risk.
We maintained that traders should tread cautiously around the market arena. Safe Trade.