It was another free day for the bear as the All Share Index of The Nigerian Stock Exchange took off 91Bpts from the market trading points. In other words, the overall performance pointer closed at 36,617.45 from 36,953.41. Safe NSE-Banking Index that added points, other observed market indices shed points. Week to Date market returns journeyed 135Bpts to red territory, while Month to Date returns equally shifted to negative territory by 17Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N116.275 billion, same as 91Bpts below the opening value. Meanwhile, trading activities for the day produced 15 advancers and 26 lagers. NSEASI Year to Date gain is now 36.25% while the Market Capitalization Year to Date gain stood at N3.426 trillion same as 37.05% above the year’s opening value.
Today’s negative performance was despite the improved headline inflation figure released by the National Bureau of Statistics for the month of October. According to the report, the figure increased by 15.91% (YoY) in October 2017. This was 0.07% lower than the rate recorded in September (15.98%) making it the ninth consecutive disinflation YoY since January 2017.
In our opinion, the negative performance may be due to investors’ reactions to the recently reviewed Morgan Stanley Capital Index (MSCI). A careful observation of the gainers and losers’ list for today revealed that Guinness gained marginal 1% while the loss on the share price of FBNH was mild (2.54%). Only PZ Cussons lost 8.93%. Please note that the three equities were moved to low cap in MSCI index. Other equities fully removed (17 of them) also lost marginally and Forte Oil did not feature in both gainers and losers’ log for the day.
We are of the opinion that smart traders should take advantage of the ongoing panic around the market arena, timely position should be made at the next support line. Safe Trade.