Breaking through 40,000 point in a grand style, equities trading on the floor of The Nigerian Stock Exchange added 129Bpts as it closed at 40,362.97 from 39,849.65. Safe NSE-Consumer Goods and NSE-Lotus II index that shed points, other observed market indices ended on a bullish note. Week to Date, a total of 370Bpts had been added to market trading point while Month to Date gain is now 554Bpts. See index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N182.672 billion, same as 129Bpts above the opening value. Meanwhile, trading activities for the day produced 47 advancers and 7 lagers. NSEASI Year to Date gain is now 5.54% while the Market Capitalization Year to Date gain stood at N754.356 billion same as 5.54% above the year’s opening value.
Given the ongoing aggressive bullish run, virtually all blue chips are currently maintaining presence in the gainers’ log; thus, technical charts are bound to give buy signals. The implication of this is that, the market will produce more winners, and portfolios which have long stayed in the red will start approaching profit lines.
As this situation continues, investors are advised to avoid taking positions in any listed equities without first identifying the underlying fundamentals of such. Recall that most equities are now either overrunning or approaching their respective 2014 highs (2014 was a bullish year).
As noted above, positions should be based on individual equity’s fundamentals, and most importantly possibilities of positive full year financials/cash or scrip dividends should ultimately guide the choice equities in traders’ trading baskets. Safe Trade.