Firming up grounds, the bears dragged the market deeper into the red territory as the lead performance index- NSEASI gave up 107Bpts of its trading point and ended trade at 40,802.08 from 41,243.24. Safe NSE-Consumer Goods that gained, other observed market index closed in the negative region. Week to Date, market has lost 162Bpts while the total lost point in the month of March is now 584Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N159.371 billion, same as 107Bpts below the opening value. Meanwhile, trading activities for the day produced 18 advancers and 29 lagers. NSEASI Year to Date gain is now 6.69% while the Market Capitalization Year to Date gain stood at N1.130 trillion same as 8.31% above the year’s opening value.
The dwindling nature of the market in recent times may be a blessing in disguise for smart and intelligent investors, especially the technical analyst. Ordinarily, price correction will give entry positions for those who missed out in the last short move. Complimenting this, we have spotted Harmonic Bullish Gat pattern completely formed on the lead index chart pattern. Technically, this pattern is known for its smart warning of market reversal (bullish & bearish). We therefore, recommend positioning in tranches in dropping equities so as not to miss out when the new trend picks up.
Although the market had maintained bearish trend, we see this as market correction and see a bigger move ahead. One notable thing about both the market and several other equities dropping at the moment is the fact that fundamentals remain intact and correct. In fact, listed equities with December financial year end may be said to have further boosted market fundamentals with various positive earnings.
Save the coming election, the nation’s economy kept getting better by the day, for example, the nation’s external reserve is expected to cross $50 billion by the end of 2018, the headline inflation has maintained reducing trend till last month and the trend is expected to continue. More positivity is blooming on the monetary policy committee as April 3rd and 4th had been scheduled for their next meeting. On the strength of these facts, we recommend that traders smartly return to the market before the trend commence. Safe Trade.