In another bullish outing, equities trading on the floor of The Nigerian Stock Exchange added 189Bpts and rounded up trade at 44,885.24 from 44,054.72. Safe NSE-Consumer Goods that shed points, other observed market indices closed above their respective opening points. Week to Date 463Bpts had been added to market trading points, while Month to Date gain is now 1,737Bpts. See index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N297.530 billion, same as 189Bpts above the opening value. Meanwhile, trading activities for the day produced 40 advancers and 19 lagers. NSEASI Year to Date gain is now 17.37% while the Market Capitalization Year to Date gain stood at N2.470 trillion same as 18.15% above the year’s opening value.
The positive performance observed today was despite profit taking activities, this further confirmed the strength of the bull currently ruling the market.
As interesting as this position is, the risk of taking new positions in any listed equities has increased, thus profit expectation should be commensurate. Technically, there is no diversion between volume and price, that is, market momentum justified price actions. We are of the opinion that earnings expectations will further support the ongoing positive trend.
However, to be on a safer side, traders should explore tools that can timely identify diversion between price and volume momentum (e.g Money Flow Index), this will definitely inform the strength of the fund currently driving the market. Safe Trade.