For the first time within the week, equities trading on the floor of The Nigerian Stock Exchange ended on a green note, as it added 16Bpts and closed at 32,354.78. It was a mixed performance amongst the observed market indices as shown in the index movement table. Both the Week to Date and Month to Date market loss now stand at 230Bpts.
Value gained by the market capitalization of the listed equities during today’s trading activities was N18.079 billion, same as 16Bpts above the opening value. Meanwhile, trading activities for the day produced 12 advancers and 33 lagers. NSEASI Year to Date gain is 20.20% while the Market Capitalization Year to Date gain stood at N1.886 trillion same as 20.40% above the year’s opening value.
Without much argument, the recovery move posted today is quite weak. You will recall that the market had witnessed very strong positive performances within the last two trading months, thus, one would expect a stronger bull than what emerged today. Evidently, traders are currently playing the market with heightened cautiousness. Nevertheless, it will be safe to observe investors reactions during the next trading day (Friday 7th July, 2017) before taking any strong investment decision on short term trades. The two hypotheses to be tested are; Traders will join the bullish moves on Friday and Traders will maintain sides with bearish moves. This will be confirmed by at least over 1% gain on the lead performance index.
Although we are not saying categorically, that the bull is finally exiting the market arena for the rest of 2017, we believed that traders should play cautiously around the market arena to avoid bull trap. Traders are advised to base investments only on half year earnings expectations. Playing very short term may also be paused for now as such trading strategies may fail should the trend repeat itself. Safe Trade.