Equities trading on the floor of The Nigerian Stock Exchange ended on almost a flat note, as it added marginal 2Bpts to its trading points, thereby rounding up at 36,608.76 from 36,600.07. Safe NSE-Pension index that shed points, other observed market indices gained. Week to Date, lead index is below opening by 26Bpts while total points lost in the month of November is 20Bpts. See the index movement table for details.
Value gained by the market capitalization of the listed equities during today’s trading activities was N7.289 billion, same as 6Bpts above the opening value. Meanwhile, trading activities for the day produced 17 advancers and 23 lagers. NSEASI Year to Date gain is now 36.22% while the Market Capitalization Year to Date gain stood at N3.498 trillion same as 37.83% above the year’s opening value.
Interpreting the candlestick formation representing today’s trading activities; one could assume a reversal of the lost point posted yesterday. Nevertheless, such reversal candlestick is not usually taken serious until confirmation is received on the next trading day. Militating against the strong reversal is the fact that the last investors’ remorse (induced by the unguided investors’ reactions to MSCI Index reshuffle) pushed the market below the last support line, which technically will now act as a resistance until a break over is achieved.
The question here is, can the three recently released economic indicators (Headline Inflation Figure, Q3-GDP Report, and the outcome of the MPC meeting) enhance market recovery to the extent of overrunning resistant? This is a question the market will attempt to answer during the next two trading days of the week.
On the strength of the above, we recommend cautious tread around the market arena. All fundamental news should be played accordingly. Safe Trade.